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Investing.com -- United Parcel Service (NYSE:UPS) announced Thursday it will offer voluntary buyouts to full-time U.S. drivers as part of a major network restructuring that includes eliminating 20,000 jobs and closing 73 facilities.
The Atlanta-based shipping company said the buyout packages will be offered in addition to any existing retirement benefits such as pension and healthcare.
This move comes after UPS revealed in April its plans for a network reconfiguration following reduced delivery volumes from Amazon.com (NASDAQ:AMZN), one of its key customers, and amid tariffs implemented by U.S. President Donald Trump.
The Teamsters union, which represents approximately 330,000 UPS workers, criticized the buyout plan, calling it an "illegal violation" of their national contract. The union stated that UPS had previously committed to creating 22,500 additional jobs.
"Our members cannot be bought off and we will not allow them to be sold out," said Sean O’Brien, general president of the Teamsters. "UPS needs to live up to the existing contract. They must honor their commitments."
In response, UPS maintained that it intends to adhere to the terms of its contract with the union.
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