Business

Honda to increase pay for US autoworkers following UAW strike

by Julia Shapero - 11/10/23 2:02 PM ET

A woman walks past the logo of Honda Motor Co. in Tokyo on Oct. 19, 2021. Honda’s profit for the fiscal year that ended in March dropped 1.7% as sales took a hit from a semiconductor shortage and restrictions in China related to the coronavirus pandemic. But the Japanese automaker said Thursday, May 11, 2023, that recovery was on the way, forecasting record sales and operating profitability for the current fiscal year. (AP Photo/Koji Sasahara)

Honda plans to increase wages for workers at U.S. factories by 11 percent in January, after the United Auto Workers (UAW) union struck a deal for substantial pay raises and other benefits with three major automakers late last month.

The Japanese automaker will also decrease the time it takes workers to reach the top wage rate from six years to three years, matching similar commitments made by Ford, General Motors (GM) and Stellantis, the company confirmed Friday.

“Honda has been committed to maintaining an excellent employment experience for our production associates since we began manufacturing in America in 1979, including competitive wage and benefit packages and a work environment founded on teamwork, mutual respect, and open communication,” the automaker said in a statement.

The announcement comes less than two weeks after the UAW officially ended its strike against the trio of major U.S. car companies.

Ford, GM and Stellantis all agreed to a 25 percent general wage increase over the life of the 4 1/2-year contract, as well as cost-of-living adjustments and a three-year progression to the top wage rate.

Toyota followed suit just days after the strike concluded, announcing plans to raise wages for hourly manufacturing workers in the U.S. by about 9 percent starting Jan. 1. It will also cut the time it takes to reach the top wage rate to four years.

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While addressing a crowd of UAW members in Illinois on Thursday, President Biden touted the wider impact of the union’s negotiations with GM, Stellantis and Ford, pointing to Toyota’s recent decision to raise wages.

“Look folks, these deals are game-changers,” Biden said. “Not only for UAW workers, but for all workers in America. Just ask the folks at Toyota, which last week announced it would significantly finally increase wages for their workers. They had no choice because of what you did. You helped everybody.”

Foreign automakers are also facing increased pressure, as the UAW turns its attention to organizing at nonunionized factories.

“One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before,” UAW President Shawn Fain said last month. “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.”