(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 (NYSE:GM), Ford Motor (NYSE:F) 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 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 (NASDAQ:TSLA) 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 (ETR:VOWG_p) - Will raise pay by 11% for non-union production workers at its Chattanooga assembly plant in Tennessee, effective December 2023.
** Nissan Motor - 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 Motor - Will hike wages for nonunion production workers at its Alabama factory by 25% by 2028, impacting 4,000 hourly workers.
** Honda Motor - 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 (T:7203) - 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.