Toyota Raises U.S. Factory Worker’s Wages

Just a few days after the United Auto Workers union secured important pay and benefit increases from the Detroit Three automakers, Toyota Motor announced on Wednesday that it is increasing the wages of nonunion U.S. factory workers.

The company confirmed that hourly manufacturing workers at top pay will see a pay increase of roughly 9% starting on January 1. Wage increases are being given to other nonunion logistics and service parts workers.

The biggest Japanese automaker also announced that it is increasing paid time off and shortening the time it takes for production workers in the United States to reach top pay—from eight years to four years.

Citing a corporate document, the media and organising project Labour Notes previously reported on the wage increases and other details.

Top-level Toyota factory workers in Kentucky will receive an hourly wage increase of $2.94 to $34.80.

The new tentative agreements with Ford Motor (F.N), Stellantis (STLAM.MI), and General Motors (GM.N) will increase wages for UAW workers by 11% upon ratification and another 25% through April 2028. Cost-of-living increases will also be granted to UAW workers. They will only need to work three years instead of eight years to reach top pay. The highest hourly wage for UAW employees at Ford will initially increase from $32.05.

“One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before,” Fain said on Sunday. “When we return to the bargaining table in 2028, it won’t just be with the Big Three, but with the Big Five or Big Six.”

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