Local 710 Update Regarding the UPS “Buyouts”
Current Status of the Program, FAQs, and Next Steps
MOKENA, IL | In an emergency hearing Saturday, Local 710 successfully secured a Restraining Order temporarily blocking UPS from proceeding with the Driver Voluntary Separation Program (DVSP) buyouts.
“UPS must be more transparent with this non-negotiated buyout program,” said Local 710 Secretary-Treasurer Mike Cales. “Prior to the injunction being filed, our members had no protections – just UPS’s word. Our members must have conditions that not only recognize their hard work and sacrifices over their careers at UPS, but also protect all participants in their pension funds. We look forward to a resolution in this matter as soon as possible.”
“While we understand that this program may benefit some members, we need to ensure that there is real dialogue between the Union and the Company first about how everything will be implemented,” said Local 710 President Del Schaefer. “Now UPS is trying to blame the Local for members not getting their buyouts right now, when this could have been resolved weeks ago if they had just simply met with the Union. They need to go over the parameters of this program and give us assurances that our members will be protected and their contractual rights will be honored.”
The next step in this process will be a court hearing tentatively scheduled for Tuesday, August 26 regarding the injunction. Local 710 will keep members informed of this fluid situation as it progresses.
FAQs & Timeline
Why did the Local file a Restraining Order?
Over the past six-plus weeks, Local 710 has been doing everything in its power to get the Company to sit down and provide the information and assurances necessary for the Local to allow UPS to proceed with their buyout program. UPS has not responded in any meaningful way, so the Local was forced to appeal to a Judge to issue a Restraining Order.
What are the problems with the DVSP?
The DVSP is in violation of Article 27 of the Local 710 Collective Bargaining Agreement, and UPS Drivers currently do not have real protections or assurances when it comes to this program. The Local is demanding information before the Company implements this program. Additionally, the ways in which this program may be implemented could have an impact on the members’ pension fund, which the Local is also working hard to protect.
What does this mean for drivers who have signed up for the DVSP?
It means that there is a temporary pause on the Company having members sign off on their separation agreements and moving forward with any additional offers.
What impact does the DVSP have on 710 pensions?
With no response from the Company on how exactly this plan is being implemented now, as well as any future plans, the Union cannot say for sure how the DVSP may impact the 710 Pension Fund. If UPS allows for an unexpected amount of members to leave the company in one fell swoop without hiring new drivers, this would mean less contributions into the Fund.
Timeline
- Late June / Early July: Rumors begin spreading about buyout offers at UPS
- July 7: 710 emails UPS requesting the PCM being read by management regarding the early stages of the DVSP
- July 8: 710 and UPS has a call discussing the importance of the Local being able to receive and digest the information before consenting to the DVSP
- July 9: UPS emails 710 some paperwork being sent out to the members regarding the DVSP
- July 15: 710 and UPS have a call discussing when the DVSP would be open to the members and how many members would be able to participate in the program (UPS estimated 50 drivers total, but would not confirm if that number would be higher)
- July 16: 710 files an Agent’s Protest regarding the violation of Article 27 sent in an email to UPS notifying them that 710 would initiate legal proceedings
- July 17: UPS delivers DVSP offer letters to eligible members
- August 1: 710 sends a formal information request to UPS regarding all aspects of the DVSP (to date, UPS has not responded to this)
- August 14: 710 and UPS have a call, and 710 urges UPS to pause the program and sit down with the Union or else the Union would proceed with the injunction; UPS refuses
- August 15: 710 secures Restraining Order against UPS, temporarily halting the implementation of the DVSP
- August 18: UPS sends out emails to DVSP participants
- August 26 (tentative): 710 and UPS will participate in a court hearing regarding the injunction
