Toyota Motor Corp TM has revealed plans to boost the wages of its nonunion U.S. factory workers. The decision comes on the heels of the United Auto Workers (UAW) union successfully securing pay and benefit increases from the ‘Detroit three’ automakers.
What Happened: Toyota has stated that from January 1, most hourly manufacturing workers will experience a wage increase of approximately 9%, Reuters reported. The time for U.S. production workers to reach top pay will come down from eight years to four. Meanwhile, other nonunion logistics and service parts employees will also see their paychecks growing, the report added.
Executive Vice President of Toyota Motor North America, Chris Reynolds, told Reuters that the hike is aimed at ensuring that the company stays competitive within the auto industry in terms of compensation.
See Also: What’s Going On With Tesla Stock?
Why It Matters: Toyota’s decision to increase wages comes in the wake of the UAW’s hard-won labor deals with the Detroit Three- General Motors Co GM, Ford Motor Co F, and Stellantis NV STLA. The deals provide for a 25% general wage increase over the course of the agreement and an 11% wage increase on ratification of the agreement.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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