Honda hikes production workers’ pay after UAW deals with Detroit Three. Days after the United Auto Workers (UAW) union and the Detroit Three automakers reached an agreement on new contracts, Honda Motor (7267.T) said on Friday that it will begin paying production employees at its U.S. factories 11% more starting in January.
In line with a previous Wall Street Journal article, the corporation also said that it will shorten the time it takes for an employee to reach the highest compensation category from six to three years.
Following the record contracts the UAW secured at the Detroit Three automakers, non-unionized automakers like Honda have faced pressure to increase pay and benefits.
Honda started producing cars in the United States in 1979 and now has 12 facilities, making five million units annually.
More than 23,000 workers from the Japanese carmaker assist in producing its goods in the U.S. Following Toyota’s (7203.T) announcement last week that it was increasing the wages of its non-union U.S. plant workers, Honda has increased compensation.
The UAW has reached agreements with General Motors (GM.N.), Ford Motor Company (F.N.), and Chrysler’s parent company Stellantis (STLAM.MI) to increase employee base salaries by 25% and reinstate cost of living allowances (COLA).
Voting on contracts from Detroit’s Big Three automakers is underway for union workers.
Additionally, the UAW has indicated that the next phase of its campaign will involve leveraging its success in negotiations with the Detroit Three by organizing drives at automakers like Tesla (TSLA.O), Toyota, and other non-union U.S. manufacturers.
Honda has informed Reuters that it will continue to be competitive while assessing the latest UAW agreements with the Detroit Three automakers.
Comment Template