Under the agreement, UPS can offer severance packages to up to 7,500 drivers nationwide.
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The Teamsters had threatened to strike in Louisville, the home of UPS' global air hub, in retaliation for the move to dismiss about 35 "specialists" and "admins" who work at the shipper's Centennial ground hub in Louisville.
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The authorization doesn't mean a strike will occur.
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The company will not require customers to sign for packages to minimize direct contact.
Thousands of UPS workers have been promised retroactive pay raises under a new labor contract that is still pending six months after a national vote. Workers who leave now may never get the raises.
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The eastern Jefferson County facility makes McGriddle breakfast sandwiches for McDonald's restaurants, among other food products.