Following the tentative deals between Detroit's Big Three automakers Ford F, General Motors GM and Stellantis STLA with the United Auto Workers, another manufacturer is feeling the heat and now has made a major move in the name of labor relations.
In a report by Axios, storied Japanese automaker Toyota TM has given a pay increase to its non-union factory workers.
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Toyota North America did not elaborate on a specific dollar amount. However, pro-labor publication Labor Notes reported that Toyota workers got hourly pay increases of $2.94 for production workers, while skilled trades worker’s pay increased by an extra $3.70.
With these raises in effect, the top pay rate for production workers at Toyota will be at a maximum of $34.80 per hour, while employees with skilled trades will earn a max of $43.20 per hour.
In comparison, the UAW’s tentative agreements grant wage increases across Detroit’s Big Three, with Stellantis and GM’s starting wage increasing to “over $30 an hour,” and the top wage to “over $42 an hour,” while Ford’s starting wage increased to “over $28 an hour” and top wage to “over $40 an hour.”
Luke Sharrett/Bloomberg via Getty Images
In a statement, Toyota Motor North America executive vice president of corporate resources Chris Reynolds said that they “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.”
United Auto Workers president Shawn Fain said in a statement that the longer contracts that his union has negotiated gives more time for the union to organize workers at non-union auto manufacturers like Toyota, Tesla and Nissan, noting that “when we return to the bargaining table in 2028 it won't just be with the Big Three, but with the Big Five or Big Six.”
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"Non-union auto workers are not the enemy. Those are our future union family," he said. "We're going to organize non-union autoworkers everywhere. Together we're going to stand up and take on corporate greed."
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