Hyundai to hike US hourly wages 25% by 2028 after union showdown
Korean vehicle maker joins Toyota and Honda in raising US factory wages
13 November 2023 - 20:09
byDavid Shepardson
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Hyundai Motor said on Monday it will hike wages for nonunion production workers at its Alabama factory by 25% by 2028, weeks after the United Auto Workers (UAW) won new contracts with the Detroit Three carmakers.
The Korean vehicle maker joins Toyota Motor and Honda Motor in raising US factory wages after the UAW won a new contract with General Motors, Ford Motor and Chrysler parent Stellantis that will result wage increases of 25% through 2028. The Detroit Three wage hikes amount to 33% when expected cost-of-living adjustments are factored in.
Hyundai said that with a new raise coming in January, the 4,000 hourly workers at its Alabama factory will have received a wage increase of 14% over the past 12 months. Hyundai Motor Group also plans higher wages at its electric-vehicle factory in the US state of Georgia that will open in 2025.
Hyundai said that wages are being raised so that the company can “remain competitive and ... recruit and retain top talent”. Hyundai builds the Santa Fe, Tucson, Santa Cruz and Genesis GV70 vehicles in Montgomery, Alabama.
On Friday, Honda said it would give US production workers an 11% pay hike starting in January and cut the time for factory workers to reach the top wage tier to three years from six, in line with a key concession won by UAW in its recent negotiations.
Honda and other nonunion automakers in the US 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.
When US President Joe Biden visited Illinois last week, he said he backed the UAW’s efforts to unionise Tesla and Toyota, adding that all US motor industry workers deserve a deal similar to the UAW’s recent agreements with the Detroit Three.
Honda’s pay hike was announced after Toyota said it was raising the wages of its nonunion US factory workers.
UAW workers are voting on whether to ratify those contracts.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Hyundai to hike US hourly wages 25% by 2028 after union showdown
Korean vehicle maker joins Toyota and Honda in raising US factory wages
Hyundai Motor said on Monday it will hike wages for nonunion production workers at its Alabama factory by 25% by 2028, weeks after the United Auto Workers (UAW) won new contracts with the Detroit Three carmakers.
The Korean vehicle maker joins Toyota Motor and Honda Motor in raising US factory wages after the UAW won a new contract with General Motors, Ford Motor and Chrysler parent Stellantis that will result wage increases of 25% through 2028. The Detroit Three wage hikes amount to 33% when expected cost-of-living adjustments are factored in.
Hyundai said that with a new raise coming in January, the 4,000 hourly workers at its Alabama factory will have received a wage increase of 14% over the past 12 months. Hyundai Motor Group also plans higher wages at its electric-vehicle factory in the US state of Georgia that will open in 2025.
Hyundai said that wages are being raised so that the company can “remain competitive and ... recruit and retain top talent”. Hyundai builds the Santa Fe, Tucson, Santa Cruz and Genesis GV70 vehicles in Montgomery, Alabama.
On Friday, Honda said it would give US production workers an 11% pay hike starting in January and cut the time for factory workers to reach the top wage tier to three years from six, in line with a key concession won by UAW in its recent negotiations.
Honda and other nonunion automakers in the US 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.
When US President Joe Biden visited Illinois last week, he said he backed the UAW’s efforts to unionise Tesla and Toyota, adding that all US motor industry workers deserve a deal similar to the UAW’s recent agreements with the Detroit Three.
Honda’s pay hike was announced after Toyota said it was raising the wages of its nonunion US factory workers.
UAW workers are voting on whether to ratify those contracts.
Reuters
UAW workers at GM’s Flint plant narrowly vote against labour deal
GM reaches tentative deal with union, ending huge co-ordinated strike
US car union’s deal cranks up heat on manufacturers
US vehicle union and Ford reach tentative deal to end prolonged strike
GM withdraws guidance for 2023 profit
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Continental to cut thousands of jobs in its automotive division
Moller-Maersk to slash jobs amid slowing world trade
Tesla-supplier Panasonic cuts battery unit outlook as US high-end EV sales drop
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.