COMP NEWS – In the wake of UAW’s historic contract for its union workers, other automakers with non-union workforces are seeking to appease their employers with above-standard pay raises.

Nov 22 (Reuters) – 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 (GM.N), Ford Motor (F.N) and Stellantis (STLAM.MI) 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 on Monday 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 (TSLA.O) auto plants.

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

Some of the automakers including near-future pay raises include Honda, Toyota, Volkswagen, Nissan, Hyundai, and more.

** Hyundai Motor(005380.KS) – Will hike wages for nonunion production workers at its Alabama factory by 25% by 2028, impacting 4,000 hourly workers.

** Honda Motor(7267.T) – 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 Motor <7203.T > – 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.

To read more about how automakers are seeking to appease their workers with pay raises, click here.

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