Volkswagen joins other vehicle makers raising pay after huge UAW strike ends
22 November 2023 - 21:12
byMehr Bedi
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Volkswagen (VW) said on Wednesday that it would hike salaries for production workers at its Tennessee-based Chattanooga assembly plant by 11%, weeks after the United Auto Workers (UAW) union won significant pay and benefit hikes from the Detroit Three vehicle makers.
The German company and other non-union vehicle makers in the US have come under increased pressure to improve pay and benefits following the record contracts achieved by the UAW in late October after thousands of its members went on a six-week targeted strike.
Japanese carmakers Honda Motor and Toyota have raised wages for non-union US factory workers in recent weeks amid signs that the union is turning its attention to organising the workforce at foreign-owned and Tesla vehicle plants.
Hyundai Motor has also announced a 25% increase over the next four years for non-union production workers in Alabama and Georgia.
UAW president Shawn Fain said last week that the union was getting expressions of interest in organising from many Tesla workers.
The Elon Musk-led company, which enjoys an operating profit advantage over other automakers, has not announced any salary hikes in the US
VW’s pay increase is effective from December, with a compressed wage progression timeline beginning in February.
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.
VW hikes wages for US factory workers
Volkswagen joins other vehicle makers raising pay after huge UAW strike ends
Volkswagen (VW) said on Wednesday that it would hike salaries for production workers at its Tennessee-based Chattanooga assembly plant by 11%, weeks after the United Auto Workers (UAW) union won significant pay and benefit hikes from the Detroit Three vehicle makers.
The German company and other non-union vehicle makers in the US have come under increased pressure to improve pay and benefits following the record contracts achieved by the UAW in late October after thousands of its members went on a six-week targeted strike.
Japanese carmakers Honda Motor and Toyota have raised wages for non-union US factory workers in recent weeks amid signs that the union is turning its attention to organising the workforce at foreign-owned and Tesla vehicle plants.
Hyundai Motor has also announced a 25% increase over the next four years for non-union production workers in Alabama and Georgia.
UAW president Shawn Fain said last week that the union was getting expressions of interest in organising from many Tesla workers.
The Elon Musk-led company, which enjoys an operating profit advantage over other automakers, has not announced any salary hikes in the US
VW’s pay increase is effective from December, with a compressed wage progression timeline beginning in February.
Reuters
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