Report: Toyota Boosts Wages Ahead of UAW Ratification Votes
While the United Automobile Workers (UAW) are preparing to vote on contract proposals offered by Ford, General Motors, and Stellantis, non-union Toyota is increasing hourly wages. Hourly compensation has increased for the automaker’s U.S. manufacturing, distribution center, and logistics employees. It’s also offering more paid time off than before and reducing the time it takes for workers to reach top-tier compensation.
Considering Toyota had already issued two pay bumps for 2023, seeing a third is a bit of a surprise and likely has everything to do with the results of the UAW strike.
Based on reporting from Automotive News, it even looks like Toyota may have been bench-marking the new union contracts. Hourly wages are coming up a little more than 9 percent, resulting in a payment scheme that will look similar to what the domestic brands are offering when it goes into effect at the start of 2024.
From Automotive News:
The third increase, which goes into effect Jan. 1, was announced just over a month after Toyota raised wages 25 cents an hour to $31.86 for its production workers, effective Sept. 25.
The $2.94 raise announced Tuesday for production and other hourly employees is unusual in that the Japanese automaker typically increases wages twice a year. The raise amounts to a 9.2 percent increase for top-tier hourly employees above the wages Toyota put into effect Sept. 25.
The raise comes as the UAW reached tentative agreements with the Detroit 3 on lucrative new contracts. As to whether there is a direct causal link, the spokesman referred to a written statement from Chris Reynolds, executive vice president for corporate resources at Toyota Motor North America.
Skilled trades employees are said to be eligible for up to $43.20 an hour. That’s $3.70 more than the previous arrangement that went into action on September 25th. Wage progression has likewise been made shorter, now taking just four years (rather than eight) for new employees to reach the upper echelons of the payment pyramid.
"At Toyota, we take great pride in showing respect for people. We value our employees and their contributions, and we show it by offering robust compensation packages that we continually review to ensure that we remain competitive within the automotive industry," a Toyota spokesperson stated.
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