Toyota said it will raise wages at its U.S. factories just days after the United Auto Workers (UAW) union reached a tentative agreement with the three major automakers to suspend a weekslong strike.
The Japanese automaker will reportedly increase wages for hourly manufacturing workers at the top rate by about 9 percent Jan. 1, according to Reuters. It will also cut the amount of time it takes workers to reach the top wage rate to four years and increase paid time off.
“At Toyota, we take great pride in showing respect for people,” Chris Reynolds, the executive vice president and chief administrative officer of Toyota Motor North America, said in a statement.
“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,” he added.
The announcement follows the UAW’s decision on Monday to suspend its strike against the three major U.S. automakers — Ford, General Motors (GM) and Stellantis — after reaching a tentative deal with GM.
GM was the last of the three to strike a deal with the union, agreeing to largely the same terms as Ford and Stellantis. All three companies agreed to a 25 percent general wage increase over the life of a 4 1/2-year contract, including an immediate 11 percent raise.
They also agreed to reinstate cost-of-living adjustments and to cut the time it takes workers to reach the top wage rate to three years.
As the strike showed signs of winding down Sunday, UAW President Shawn Fain signaled that the union plans to turn its attention to organizing at other automakers.
“One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before,” Fain said during livestreamed remarks. “When we return to the bargaining table in 2028, it won’t just be with the big three. It will be the big five or big six.”