Nissan joins foreign automakers hiking wages at U.S. auto plants after UAW deal

Nissan Motor Co. said Monday it will hike top wages for workers at U.S. manufacturing plants by 10 percent in January after the UAW reached new contracts with the Detroit 3 automakers.

The Japanese automaker said the wage hike takes effect Jan. 8 for production technicians, maintenance, and tool & die technicians. Workers not yet at top scale will also receive increases in wages.

Nissan employs about 14,000 production workers at two vehicle assembly plants and a powertrain factory in Tennessee and Mississippi. About 9,000 U.S. workers in total will get pay hikes.

Nissan said it is also eliminating wage tiers for U.S. production workers. In recent weeks, Hyundai Motor Co., Toyota Motor Corp. and Honda Motor Co. have all announced they would hike U.S. factory wages after the UAW contract deal was reached with the Detroit 3. The union says it will work to organize nonunion plants operated by foreign automakers and Tesla Inc.

Nissan said the pay hikes reflect its commitment to its employees in the U.S. "and enhancing our competitiveness."

The UAW labor deals with General Motors, Ford Motor Co. and Stellantis include a 25 percent increase in base wages through 2028, including an immediate 11 percent hike, and will cumulatively raise the top wage by 33 percent, compounded with estimated cost-of-living adjustments to over $42 an hour.

It also cut the number of years needed to get to top pay from eight years to three years, will boost the pay of temporary workers by 150 percent and make them permanent employees. The deal also includes significant retirement improvements.

The UAW for decades has unsuccessfully sought to organize auto factories operated by foreign automakers. UAW President Shawn Fain was in Washington last week for meetings on the union's organizing strategy.

President Joe Biden has backed the UAW in its quest to unionize other carmakers.

Nissan said over the last three years it has increased wages at its three manufacturing sites by 12-18.5 percent in total; previously cut time needed to reach top pay from eight to four years; added two paid holidays and increased paid parental leave for production workers.