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UPS to retrofit 5,000 delivery vans with air conditioning

Teamsters union pushed for cooling systems to protect drivers from excessive heat conditions

Eric Kulisch
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UPS will upgrade 5,000 package cars, like this one in Vancouver, Washington, with air conditioning to improve driver work conditions. (Photo: Eric Kulisch/FreightWaves)
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Key Takeaways:

  • UPS has agreed to retrofit 5,000 existing delivery vehicles with air conditioning by June 2027, prioritizing the hottest U.S. regions, as a compromise with the Teamsters union.
  • This agreement is an interim step, falling short of the Teamsters' original demand for 28,000 new air-conditioned vehicles and potentially influenced by UPS's ongoing network streamlining efforts.
  • Beyond retrofitting driver cabs, UPS will also pilot air conditioning in the cargo compartments of 100 package cars to evaluate its effectiveness in providing additional heat relief.
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UPS said Monday evening it has agreed to retrofit 5,000 existing delivery vehicles in the hottest regions of the country, but the decision falls short of initial Teamster union demands for 28,000 new vehicles for fleet expansion or replacement.

The Atlanta-based express parcel and logistics company said the cooling system installations are in addition to commitments for air conditioning in any newly purchased vehicles. 

The Teamsters union publicly pressed UPS (NYSE: UPS) in late June to uphold commitments in the 2023 collective bargaining agreement for purchasing 28,000 package cars with air conditioning by the summer of 2027 to protect drivers from excessive heat conditions.

UPS will install air conditioning in 5,000 delivery vans by June 1, 2027, and deploy them to states in the Southwest and Southeast. The first 2,000 vehicles readied under the agreement will be retrofitted by June 1, 2026, according to a Teamsters news release. 

The Teamsters characterized the company’s investment as an interim step towards the full deployment goal. But neither announcement gave any indication when UPS will begin investing in new vehicles outfitted with air conditioning. The union last summer said UPS had only delivered 10% of the required air-conditioned vehicles.

A possible explanation for the retrofit compromise and apparent moratorium on new vehicle purchases is that UPS is in the midst of a massive network streamlining initiative aimed at aligning capacity with demand and saving billions of dollars per year. As part of the consolidation campaign, UPS offered drivers voluntary separation packages in an effort to reduce payroll costs at a time when fewer drivers are needed. The company in early August extended the deadline for accepting the buyout offer, but never announced the outcome. Based on Teamster comments and other information, it appears few drivers accepted the offer.

Under the new agreement, UPS will also test air conditioning in the cargo area of its delivery vans. Currently, air conditioning is only provided in the front cab. The Teamsters said UPS will upgrade 100 package cars with air conditioning vented into the cargo compartment to evaluate whether the change provides greater heat relief, marking the first step towards implementing a UPS committed in the 2023 master contract to ventilate cargo compartments with retrofitted air ducts. 

 “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,” Teamsters General President Sean O’Brien said in a news release.

In a statement, UPS listed a series of ways it strives to ensure heat-safety for employees, including training and reminders about the importance of eating water-rich foods, regular hydration and knowing the signs and symptoms of heat illness.

UPS installed more than 19,000 fans in U.S. facilities (in 2023) and heat shields (in 2024) on the exhaust of delivery vehicles to keep the floor cooler by up to 17 degrees Fahrenheit and make the back of the vehicle more comfortable. It also added 2,700 ice machines at package facilities in recent years, the company said.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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Eric Kulisch

Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com