Teamsters Vote to Challenge UPS Over Roadie Gig-Driver Use
Union claims UPS subsidiary violates 2023 contract by routing deliveries to nonunion gig workers, while UPS says Roadie handles same-day orders outside the parcel network.
The Teamsters passed a resolution at its Las Vegas convention this week directing leadership to challenge United Parcel Service for allegedly violating the 2023 collective bargaining agreement by outsourcing delivery work to nonunion subcontractors. The union represents about 330,000 UPS workers, including roughly 100,000 delivery van and truck drivers.
Does Roadie Take Work from Teamster Drivers?
The union claims the 2023 contract prohibits UPS from funneling tasks reserved for union workers to companies that use gig workers. In November, the Teamsters publicly complained that UPS was improperly diverting parcel deliveries to Roadie, which relies on lower-paid gig workers for final-mile delivery. Officials said Roadie uses UPS labels, tracking, and equipment, proving Roadie is taking work from Teamster drivers.
UPS dismissed the allegations in a November statement. "Our contract with the Teamsters requires that UPS drivers handle all deliveries for our small package business unit directly and we remain in compliance with the terms of our agreement. We address any disputes through our long-established grievance process," the Atlanta-based express logistics provider said.
According to Roadie's website and parcel industry professionals familiar with both companies, Roadie handles same-day, urgent shipments, including groceries, that never go through the Brown parcel sortation network and oversize items that don't fit in a box. The crowdsourced delivery platform picks up orders for customers such as Walmart, Tractor Supply, FilterBuy, Spirit Halloween, paint brand Benjamin Moore, and Nothing Bundt Cakes at local stores and warehouses for last-mile delivery to shoppers.
Four Years of Roadie Expansion
"Over the past four years, UPS has been scaling Roadie's operations nationwide. Dozens of Roadie distribution centers and cross-dock facilities have popped up. UPS wants more individual users on the Roadie app because the package giant is desperate to weaken the leverage, power, and solidarity of its existing Teamsters workforce," the Teamsters claimed in its "Just Cause" Substack column in January.
In a March 4 column, the Teamsters said UPS is using Roadie "to help the company rid itself of current and future obligations to rank-and-file Teamsters." The union has established a national Roadie Committee to coordinate grievances and compile evidence from rank-and-file members about UPS contract breaches, including mapping Roadie cross-dock facilities, ahead of action to force the company to comply with the national master contract.
Recent Teamsters Wins Against UPS
The Teamsters have had recent success pushing back on UPS initiatives that impact its members. The company is in the midst of downsizing its parcel network to align with slower demand and reduce costs.
UPS this month reached a promised goal of retrofitting 2,000 package cars with air conditioning after the Teamsters filed grievances last summer that the company was slow in fulfilling its obligation to provide air conditioning in 28,000 vans in the hottest parts of the nation by the summer of 2027. Under pressure, UPS agreed to retrofit 2,000 delivery vans by June and another 3,000 vehicles by June 2027.
UPS also agreed in early April to limit driver buyouts to 7,500 individuals after unilaterally implementing a voluntary separation program with an undefined target. The move angered the Teamsters, which argued the company couldn't negotiate contract terms without union input and ultimately forced the company to cap the number of buyouts.
The Teamsters have repeatedly argued that UPS also forces workers to work overtime against their will and makes paycheck errors. Ahead of the convention, Teamsters General President Sean O'Brien said the union would hold UPS to the letter of the contract by aggressively utilizing an approved grievance process, which now includes a standing arbitrator who can quickly rule on disputes.
UK Union Condemns UPS Shift to Self-Employed Drivers
Meanwhile, Unite, the United Kingdom's largest trade union, on Friday condemned UPS for plans to discard its employee model for delivery drivers and instead rely on self-employed, on-demand drivers that provide their own vehicles for last-mile delivery. Unite said UPS will stop using frontline employees to make deliveries as of June 2027. Unite said the UPS proposal would cut the company's workforce to 4,000, about half the current number.
What This Means for Truckload Carriers
The Roadie dispute sits squarely in the parcel world, but the underlying tension tracks what truckload carriers already know: shippers and large carriers will route freight to the cheapest available option when contracts allow it. For small fleets and owner-operators, the lesson is contractual clarity. If a broker or shipper agreement doesn't explicitly define what work stays in-house and what can be brokered out, expect it to move when rates drop or capacity loosens. The Teamsters are fighting UPS over language in a 2023 contract. Most truckload carriers don't have that kind of leverage, which makes the broker-carrier agreement the only protection against a shipper quietly shifting lanes to a cheaper provider mid-contract.
During the convention, Sean O'Brien was elected to a second five-year term as president, effective in March 2027.
