UPS plans to lay off some of its controversial weekend drivers, union reps say, as delivery companies downsize for post-pandemic life

Story by ecosgrove@businessinsider.com (Emma Cosgrove) • 2h ago

UPS's higher-paid, unionized workforce gave it an advantage during the pandemic. Now that package volume has slowed from pandemic highs, many logistics companies are re-evaluating the size of their workforce. Photo by Stephanie Keith/Getty Images© Photo by Stephanie Keith/Getty Images
Teamsters representatives say UPS has raised drivers' layoffs at the bargaining table.
Layoffs are hitting the weekend-driver position created in 2018, according to local union chapters.
At least three locations in New York have already seen layoffs, according to another chapter.

UPS is beginning to lay off some weekend drivers, according to online posts from two local chapters of the International Brotherhood of Teamsters union, which represents drivers and package handlers at the company.

Teamsters Local 174 in Washington state said UPS representatives raised the layoffs at the bargaining table with a joint council negotiating a part of their master contract, which expires July 31.

The affected position, according to the union, is the "22.4" driver, named for the section of the contract that created the position. These drivers work Tuesday through Saturday and top out at $30.64 per hour, while regular drivers can reach $42. The Teamsters see these drivers as "second class" and now regret that the position was approved in their controversial 2018 contract.

Teamsters Local 804 further reported layoffs in three New York locations: Suffolk, on Long Island; Foster, in the southern tier; and Laurelton, in Queens.

Under the existing contract, affected drivers have the right to work from another location or work two weekly shifts handling packages inside UPS buildings instead of driving, and no so-called Regular Package Driver can be laid off before a 22.4 driver, according to the 804's post.

UPS and the Teamsters Union did not immediately respond to a request for comment.

UPS's higher-paid, unionized workforce gave it an advantage during the pandemic when competitors were forced to out-bid each other to contend with a labor crunch. Now that package volume has slowed from pandemic highs, many logistics companies are re-evaluating the size of their workforce.

UPS-rival FedEx contracts with small delivery businesses for its largest round delivery service and therefore can downsize its workforce more easily. (Its FedEx Express business does employ delivery personnel.) FedEx announced layoffs in February, affecting management staff and not operations workers.

This reevaluation is more complicated for UPS's 350,000 union employees — especially since the existing contract expires this year.

Teamsters President Sean O'Brien has repeatedly said that the controversial 22.4 position is one of several issues that could lead to a strike. The union has been preparing to strike for months, but UPS CEO Carol Tomé has said she wants a contract that's good for the Teamsters, UPS employees at large, and the company.

"I would submit that a win-win-win is very achievable because we are not far apart on the issues," Tomé said on the company's earnings call in January.