Honda Steps Up With 11% Wage Hike For US Production Staff: Report

Honda Motor Co Ltd HMC reportedly announced an 11% wage increase for its production workers in the U.S., effective from January.

This decision comes on the heels of the United Auto Workers (UAW) union and major U.S. automakers establishing tentative wage contracts.

Furthermore, Honda said it is set to reduce the duration for employees to reach the top wage tier from six years to three, according to a report from Reuters.

As non-unionized automakers face mounting pressure to enhance compensation packages, Honda's move aligns with the recent lucrative contracts secured by the UAW with Detroit's Big Three automakers: General Motors Company GM, Ford Motor Company F, and Stellantis  N.V. STLA, the parent company of Chrysler.

Also Read: Toyota Announces Wage Increase For US Factory Workers After UAW Secures Pay Hikes With Detroit Three

With a history of manufacturing in America dating back to 1979, Honda operates 12 plants nationwide, with over 23,000 employees working in these facilities.

Also See: Tesla, Toyota In UAW's Crosshairs Following Detroit Contract Success: 'We've Created The Threat Of A Good Example'

Honda said it evaluates the recent UAW agreements with Detroit's Big Three and would remain competitive, as per the report.

Price Action: HMC shares are trading higher by 2.15% at $31.58 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.