© Reuters. FILE PHOTO: A Toyota logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
By David Shepardson
(Reuters) -Toyota Motor said on Wednesday it is raising wages for non-union U.S. factory workers just days after the United Auto Workers union won major pay and benefit increases from all three Detroit automakers. .
The highest-paid hourly manufacturing workers will receive a pay increase of approximately 9% starting January 1, the company confirmed. Other non-union logistics and parts employees are receiving pay increases.
The largest Japanese automaker also said it is reducing the amount of time needed for American production workers to reach maximum pay from eight years to four years and increasing paid time off.
Media outlets and organizing project Labor Notes previously reported the pay increases and other details, citing a company document.
“We value our employees and their contributions, and we demonstrate this by offering strong compensation packages that we continually review to ensure we remain competitive within the automotive industry,” Chris Reynolds, toyota Motor (NYSE:) executive vice president of North America said in a statement.
Pay for top-scale Toyota production workers in Kentucky will increase by $2.94 to $34.80 an hour.
Under new interim agreements with General Motors (NYSE:), Ford Motor (NYSE:), and Stellantis (NYSE:), UAW workers will receive an 11% pay increase upon ratification and 25% pay increases through April 2028. UAW workers will also receive cost-of-living adjustments. The amount of time needed for workers to reach maximum pay will be reduced from eight years to three years.
The maximum wage for UAW workers at Ford will initially increase to $35.58 per hour from $32.05.
For years, the UAW has tried unsuccessfully to organize American auto plants operated by foreign automakers, including Volkswagen (ETR:) and Nissan (OTC:). UAW President Shawn Fain said his goal is to organize plants operated by other automakers after the Detroit Three deal.
“One of our biggest goals after this historic contract victory is to organize ourselves like we have never done before,” Fain said Sunday. “When we get back to the negotiating table in 2028, it won’t just be with the Big Three, but with the Big Five or Six.”
The UAW declined to comment on Toyota’s pay increases.
