The Japanese automaker said Friday that it would be boosting wages for workers at U.S. factories by 11 percent at the start of next year.
“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.
Honda said Friday it would also decrease the time it takes workers to reach the top wage rate, from six years to three years, matching similar commitments made by the trio of major U.S. car companies – Ford, GM and Stellantis.
Toyota similarly announced 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.
The moves come after the UAW officially ended its strike against the three major U.S. car companies late last month.
As part of the deal, Ford, GM and Stellantis 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.
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, touting Toyota’s decision to raise wages.
Foreign automakers are also facing increased pressure, as the UAW turns its attention to organizing at nonunionized factories.
The Hill’s Julia Shapero has more here.
