Subaru to raise its U.S plant worker wages in light of UAW Detroit deals

Atsushi Osaki, president and CEO at Subaru, with the new Subaru Forester, during the press day preview of the Los Angeles Auto Show. (Reuters)

LOS ANGELES — Subaru will raise the wages and benefits of its U.S. plant workers in light of the new labor deals finalized by the Detroit Three automakers, the Japanese automaker’s CEO Atsushi Osaki told Reuters on Thursday.

The amount of the raise for workers at the company’s assembly plant in Lafayette, Indiana has yet to be determined but will be in line with industry levels following the United Auto Workers’ (UAW) new labor deals with General Motors, Ford and Chrysler parent Stellantis, Osaki said through an interpreter at the Los Angeles Auto Show.

He said the increased compensation would include benefits such as improved healthcare and not just a pay increase.

Subaru and other non-union automakers in the U.S. have come under pressure to improve pay and benefits following the record contracts achieved by the UAW in late October, roughly six weeks after thousands of its members went on strike.

U.S. President Joe Biden, who has backed UAW efforts to negotiate higher pay for its members, has said all U.S. auto workers deserve the same deal as those the UAW negotiated with the Detroit automakers.

Other non-union automakers that have raised wages for their U.S. plant workers since the UAW deals were negotiated include Toyota, Honda and Hyundai.

UAW President Shawn Fain has said “UAW” stands for “U are welcome” in response to the rising wages at the non-union plants. He has vowed the UAW will aggressively organize the non-union U.S. plants of Tesla and other foreign automakers, something the union has struggled to do in the past.