Toyota increases factory worker wages following UAW deals

Toyota factory worker wage hike overview: 

• Who: Toyota Motor North America announced it will be raising wages for its non-union factory workers in the U.S. 
• Why: The announcement comes after Ford, Stellantis and General Motors reached an agreement with the United Auto Workers union that increased their wages and benefits. 
• Where: Toyota’s decision affects its non-union factory workers and skilled trade workers at its U.S. production facilities. 

Toyota Motor North America announced last week that it will be raising wages for non-union factory workers in the U.S., with hourly manufacturing workers expected to get a pay increase of around 9% starting at the turn of the new year. 

The automaker’s production workers who are paid at top scale will now make nearly $35 per hour, while the pay for its skilled trade workers was boosted up to just more than $43, the Daily Mail reports. 

“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,” Toyota Motor North America Executive Vice President Chris Reynolds said in a statement. 

Toyota reportedly said it will also be granting wage increases to nonunion workers in its logistics and service parts departments and cut the amount of time needed for U.S. production workers to reach the top possible pay.

The automaker’s U.S. production workers will only have to work four years for the company to be eligible to receive top pay, cutting in half an eight-year requirement that was in place, Reuters reports. 

Toyota reportedly said it will also be increasing the amount of paid time off for its U.S. production workers. 

Toyota decision comes after UAW reaches deal with GM, Ford, Stellantis

The news came only days after an agreement was reached with the United Auto Workers union that granted unionized workers at General Motors, Ford and Stellantis with both pay and benefit hikes, according to Reuters. 

Under that agreement, UAW workers at the three Detroit-based automakers will receive a wage increase of 11% once the deal is ratified, along with 25% in wage increases through April 2028. 

UAW workers will also be given cost-of-living adjustments on their pay under the agreement, with the time period needed to achieve top pay decreasing from eight years to three, Reuters reports. 

General Motors, as part of its agreement with the UAW, also agreed to provide five separate payments of $500 to current retirees and their surviving spouses, the first time such a payment has been made in more than 15 years. 

What are your thoughts on Toyota’s decision to increase pay for its nonunion workers? Let us know in the comments.

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