UPS makes progress on key deliverable of deal with Teamsters, plans to install AC in 5,000 delivery vehicles

A key component of the five-year labor deal signed in August 2023 between Atlanta-based global freight transportation and logistics services provider UPS and the International Brotherhood of Teamsters was related to the rate of delivery of package cars and vans equipped with air conditioning, which required UPS to provide a minimum of 28,000 air-conditioned vehicles to drivers, is gaining momentum.

In a statement issued on October 20, UPS said that it is installing air conditioning in 5,000 of its existing delivery vehicles in the hottest regions across the country and also testing air conditioning in the cargo area of its package cars.

“This investment is above and beyond the commitment we’ve made to include air conditioning in all newly purchased vehicles,” said UPS. “In every region, our drivers will also continue to benefit from improvements we’ve made to our vehicles to reduce temperature and improve air flow. Collaboration with the Teamsters has been important as we take these steps for our people.”

The Teamsters said yesterday that UPS signed a new letter of agreement with the UPS Teamsters National Negotiating Committee to begin retrofitting 5,000 package cars with air conditioning for the hottest delivery zone in the country, including Alabama, Arizona, Arkansas, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, Nevada, New Mexico, North Caolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, and Washington.

Prior to the August 2023 deal being completed, when it was still being negotiated, the Teamsters said in June 2023 that it had come to terms with UPS on installing air conditioning in UPS delivery trucks driven by UPS Teamsters members. Teamsters’ officials said at the time that new contract language would mandate UPS equip in-cab air conditioning systems in all larger delivery vehicles, small sprinter vans, and UPS’s brown package cars purchased after January 1, 2024, with the regular package cars comprising the majority of the company’s 93,000 vehicles within its fleet.

“The Teamsters Union appreciates UPS’s recognition that our members in Zone 1 need real relief from the heat, and they need it now,” said Teamsters General President Sean M. O’Brien. “The rank-and-file at UPS are essential workers who move the American economy. In 2023, the Teamsters secured historic heat protections for our members, and there can be no further delay in the implementation of these safeguards. We look forward to working with UPS to ensure this retrofitting is completed on schedule to get our members the relief they deserve.”

In terms of the timing in regards to the implementation of air conditioning into 5,000 of UPS’s existing delivery vehicles, the Teamsters noted that

• that the vehicles will be retrofitted with air conditioning by June 1, 2027 and subsequently dispatched to the Teamsters’ hottest delivery areas in mostly Southern and Southwest states;
• the first 2,000 vehicles readied under the agreement will be retrofitted by June 1, 2026; and
• the agreement also designates that 100 package cars will be upgraded with air conditioning vented into the cargo compartment under a new pilot program to evaluate

strategies for greater heat relief, which it said is an evolution of UPS’s commitment under to 2023 National Master Agreement to ventilate cargo compartments with retrofitted air ducts

While this represents a positive development, tensions between UPS and the Teamsters were running high over the summer, when UPS said in July that it planned to roll out what it called “the largest network reconfiguration in UPS history,” which took effect on July 18, and offer full-time UPS drivers the opportunity to participate in a voluntary program that would provide an opportunity to receive a generous financial package if they choose to leave UPS. It said that the financial package available through this program is in addition to any earned retirement benefits, including pension and health care, each driver would have the ability to decide if this voluntary program is beneficial to their family and the plans they have for the future.  

The Teamsters called it “an illegal plan” to buy out full-time Teamsters-represented UPS employees, labeling it a corporate scheme which directly violated its contract with UPS that represents 340,000 delivery workers. And it added that a Driver Voluntary Severance Plan (DVSP), which UPS has not yet publicly disclosed, would offer cash to drivers to initiate early retirement or quit their job. It also stated that the DVSP would leave most drivers without quality health insurance if they retire under the program and would undermine UPS's own legal commitment to create 22,500 more jobs under its current Teamsters contract.

And, also, at that time, it formally requested data from UPS in regards to the status of open positions and also the rate of delivery of package cars and vans equipped with air conditioning.

“UPS is trying to weasel its way out of creating good union jobs here in America by dangling insulting buyouts in front of Teamsters drivers,” said Teamsters General President Sean M. O'Brien. “It is an illegal violation of our national contract. UPS is obligated to establish tens of thousands of new full-time jobs under the agreement. But CEO Carol Tomé and UPS's corporate managers are hoping that if they offer paltry severance packages to enough workers, no one will notice the company is setting the union's contract on fire. UPS Teamsters work too damn hard to be treated with such disrespect.”

As previously reported, on the company’s first quarter earnings call in April, UPS CEO Carol Tomé outlined key strategic actions tied to the company’s January network reconfiguration plans. A major step is the accelerated reduction of Amazon package volume in UPS’s network—cutting it by more than 50% by June 2026—focusing on eliminating unprofitable fulfillment center outbound volume, while retaining profitable segments like returns and Seller Fulfilled shipments. This adjustment is part of UPS’s broader “Network of the Future” initiative, the company’s largest-ever network overhaul aimed at aligning capacity with volume and increasing automation.

UPS is also restructuring operations to match labor and facility usage with volume levels. In 2024, the company closed 11 buildings and plans to complete 164 more operational closures (including 73 buildings) by June. Despite a reduced building footprint, it said customer access remains strong through UPS’s extensive retail network.