Nissan (NSANY) -) Monday that in light of recent auto-union wins, it was boosting wages for its workers at its U.S. manufacturing plants.
This wage boost affects roughly 9,000 U.S. workers, including technicians, maintenance workers and tool and die technicians.
Nissan said these workers would receive a 10% raise in January. In addition, Nissan will eliminate wage tiers for its U.S. production workers, a second component of a move the company said it designed to enhance its competitiveness.
Related: With historic new deals in hand, UAW auto union targets Tesla, other automakers
With this move Nissan joins three other nonunion automakers — Honda (HMC) -), Hyundai (HYMLF) -) and Toyota (TM) -) — in boosting wages in an effort to protect against a newly emboldened United Auto Workers union.
U.S. workers at Hyundai plants will see a 25% increase over the next four years, mirroring the contract timeline achieved by the UAW. The wage boost comes alongside a $12 billion investment to build its Hyundai Motor Group Metaplant America, which the company said will create around 12,000 jobs.
UAW accords with the Big Three carmakers
This latest legacy automaker wage hike comes not long after the UAW officially ratified its set of historic contracts with the Big Three.
The contracts, which were approved by 64% of UAW membership, feature a minimum of 33% wage hikes over the next four years and a maximum of 160%. The union said that tens of thousands of workers will see immediate 40% raises.
In addition to winning electric-vehicle commitments from the automakers, the union also reduced the time it will take workers to get to the top pay tier at each automaker, from eight years to three.
"The UAW is back to setting the standard," union President Shawn Fain said in a statement. "Now, we take our strike muscle and our fighting spirit to the rest of the industries we represent, and to millions of nonunion workers ready to Stand Up and fight for a better way of life.”
Fain and the union have been indicating for weeks that they are extremely interested in targeting nonunion automakers and organizing them.
He has previously referred to workers at Tesla (TSLA) -), Toyota and Honda as the "UAW members of the future," something these nonunion automakers seem keen to avoid.
"When we return to the bargaining table in 2028," the union said last month, "it won’t just be with the Big Three, but with the Big Five or Big Six."
Nissan shares closed the previous session at $8.18.
Related: Another legacy automaker has a powerful response to UAW auto union threat
Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.
