Honda Motor announced on Friday that it would implement an 11% pay increase for production workers at its U.S. facilities starting in January. This decision comes shortly after the United Auto Workers (UAW) union and the Detroit Three automakers reached new contracts. Additionally, Honda confirmed that it would reduce the time it takes for a worker to reach the top-wage tier from six years to three, as reported by the Wall Street Journal.
Non-unionized automakers like Honda have faced pressure to improve pay and benefits following the UAW’s successful negotiations with the Detroit Three automakers. U.S. President Joe Biden, who has supported the UAW’s efforts to secure higher pay for its members, credited the union for Honda’s pay hike. In a post on X, Biden stated, “Union auto workers own this victory.” Furthermore, Biden expressed his support for the UAW’s campaign to unionize carmakers Tesla and Toyota, emphasizing that all U.S. autoworkers deserve the same deal achieved by the UAW.
Honda, which has been manufacturing in America since 1979, currently operates 12 plants in the country, producing five million products annually. The Japanese automaker employs over 23,000 workers in the United States.
Honda’s decision to increase pay follows Toyota’s announcement last week that it would raise wages for its non-union U.S. factory workers. General Motors, Ford Motor, and Stellantis, the parent company of Chrysler, have also agreed to raise employee base wages by 25% and reinstate cost of living allowances (COLA) in their contracts with the UAW.
Currently, union workers are voting on contracts from the Big Three automakers in Detroit. The UAW has indicated that it plans to capitalize on its bargaining gains with the Detroit Three by launching organizing drives at non-union U.S. auto factories, including Toyota and Tesla.
Honda had previously stated that it was evaluating the UAW’s recent deals with the Detroit Three automakers and would strive to remain competitive.
