Automakers with non-union workforces race to bump pay after UAW's record deals

Car companies with production facilities in the United States are bumping up pay for their non-union workers after the United Auto Workers (UAW) secured record wage hikes and benefits for union workers at the Detroit Three automakers.

The UAW labor deals with General Motors, Ford Motor and Stellantis through 2028, include a 25% increase in base wages, including an immediate 11% hike, and will cumulatively raise the top wage by 33%, compounded with estimated cost-of-living adjustments to over $42 an hour.

The deal also eliminated wage tiers in factories and reduced the time it takes to reach top wage from eight years to three years.

The union has released a video on social media, touting the “UAW Bump,” urging non-union workers to join the UAW. It has shifted its focus towards foreign-owned and Tesla auto plants.

President Joe Biden has backed the UAW in its quest to unionize other carmakers.

Following is a roundup of the companies that have raised wages in response to the UAW deal:

Volkswagen – Will hike salaries for production workers at its Tennessee-based Chattanooga assembly plant by 11%. Volkswagen’s pay increase is effective from December, with a compressed wage progression timeline beginning in February.

Nissan – Will hike top wages for workers at U.S. manufacturing plants by 10% in January, impacting about 9,000 U.S. workers in total. Nissan said it is also eliminating wage tiers for U.S. production workers.

Hyundai – Will hike wages for nonunion production workers at its Alabama factory by 25% by 2028, impacting 4,000 hourly workers.

Honda – Will give production workers at its U.S. facilities an 11% pay hike starting in January, adding that it would also cut the time it takes factory workers to get to the top-wage tier to three years from six.

Toyota – Raising the wages of nonunion U.S. factory workers, with hourly manufacturing workers at top pay will receiving a wage hike of about 9% effective January 2024.

Subaru – Will raise the wages of its U.S. plant workers in Lafayette, Indiana. The company is yet to determine the amount of the raise.

And Tesla? – UAW President Shawn Fain said that the union was getting expressions of interest in organizing from many Tesla workers. The Elon Musk-led company, which enjoys an operating profit advantage over other automakers, has not announced any salary hikes in the U.S.