Deepika Agrawal 
Volkswagen and Nissan have become the latest automakers to increase wages for factory workers in the US, weeks after the United Auto Workers (UAW) union won significant pay and benefit contract from the Detroit Three automakers (Ford, General Motors, and Stellantis). The former is hiking salaries at its Tennessee-based Chattanooga assembly plant by 11% while workers at Nissan’s US factories will receive a 10% pay increase.
The non-union automakers in the US have come under increased pressure to improve pay and benefits for factory workers, following the record contracts achieved by the UAW in late October when thousands of its members went on a six-week targeted strike. In recent weeks, Japanese automakers like Honda Motor and Toyota have raised wages for non-union US factory workers. Hyundai Motor too announced a 25% increase in wages for non-union production workers in Alabama and Georgia, over the next four years.
The United Auto Workers (UAW) won a resounding 64% ratification by Detroit Three automaker workers for groundbreaking contracts, solidifying agreements until April 2028. The highlights of the contracts include a 25% base wage increase, pushing the top wage up by 33% to over USD 42 per hour, and improved conditions for temporary workers.
What is UAW?
The United Auto Workers, short for International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, is an American labor union that represents workers in the United States (including Puerto Rico) and southern Ontario, Canada. It has more than 400,000 active members and more than 580,000 retired members representing workplaces range from multinational corporations, small manufacturers and state and local governments to colleges and universities, hospitals and private non-profit organizations. It currently has 1,750 contracts with some 1,050 employers in the United States, Canada and Puerto Rico.
