(Reuters) -Car companies with production facilities in the United States are bumping up pay for their non-union workers after the United Auto Workers (UAW) secured record wage hikes and benefits for union workers at the Detroit Three automakers.
The UAW labor deals with General Motors (NYSE:GM), Ford Motor (NYSE:F) and Stellantis (NYSE:STLA) through 2028, include a 25% increase in base wages, including an immediate 11% hike, and will cumulatively raise the top wage by 33%, compounded with estimated cost-of-living adjustments to over $42 an hour.
The deal also eliminated wage tiers in factories and reduced the time it takes to reach top wage from eight years to three years.
After the win, the union released a video on social media, touting the «UAW Bump,» urging non-union workers to join the UAW. It has shifted its focus towards foreign-owned and Tesla (NASDAQ:TSLA) auto plants.
President Joe Biden has backed the UAW in its quest to unionize other carmakers.
Following is a roundup of the companies that have raised wages in response to the UAW deal:
** Tesla — Will raise wages by about 10% for some of the set-rate hourly workers at its battery factory in Sparks, Nevada starting early January, according to CNBC. It may also streamline several levels of workers, the report added.
** Volkswagen (ETR:VOWG_p) — Will raise pay by 11% for non-union production workers at its Chattanooga assembly plant in Tennessee, effective December 2023.
** Nissan (OTC:NSANY) Motor — Will hike top wages for workers at U.S. manufacturing plants by 10% in January, impacting about 9,000 U.S. workers in total. Nissan said it is also eliminating wage tiers for U.S. production workers.
** Hyundai Motor (OTC:HYMTF) — Will hike wages for nonunion
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