The International Brotherhood of Teamsters said that United Parcel Service (UPS) notified it on March 24 that it was withdrawing its latest driver buyout scheme in Central Region states, after nearly 37 local unions filed grievances against the delivery company for violating the UPS Teamsters contract. The union said the action will “greatly undermine the company’s illegal pursuit of buyouts” in other regions under the National Master Agreement.

The Teamsters Central Region encompasses 13 states from Nebraska to Ohio and is home to more than 68,000 rank-and-file Teamsters working at UPS. The latest buyout, which the company calls the Driver Choice Program (DCP), had asked drivers to accept a one-time lump sum payment in exchange for legally committing to never work for UPS again, to waive their rights to union representation, employer-paid health care, and guaranteed retirement benefits.

“By pulling out of more than a dozen states, UPS has conceded that its buyout programs are illegal. They are scams designed to fuel corporate greed. These programs violate the Teamsters contract and UPS knows it,” said Teamsters General President Sean M. O’Brien. “The Teamsters strongly urge UPS to take the next right step and dismantle its Driver Choice Program across the country. If UPS fails to do right by the men and women who deliver its packages and generate its billions in profit, the Teamsters will pursue our grievances nationwide and defeat UPS in arbitration. We are prepared to do whatever it takes to protect our members’ rights.”

In court filings earlier this year, the Teamsters detailed at least six violations of its National Master Agreement by UPS in the rollout of the buyout program, including direct dealing of new contracts with workers, elimination of union jobs when UPS contractually agreed to establish more positions, and erosion of the rights and privileges of union shop stewards, the union said.