Nonunion Toyota boosts hourly wages 9.2%, cuts progression time as UAW votes await

Toyota Motor North America raised hourly wages for its U.S. manufacturing, distribution center and logistics employees yesterday for the third time this year, upping the top wage to $34.80 per hour, cutting the number of years to reach that wage, and boosting paid time off for all employees, a spokesman confirmed.

The third increase, which goes into effect Jan. 1, was announced just over a month after Toyota raised wages 25 cents an hour to $31.86 for its production workers, effective Sept. 25.

The $2.94 raise announced Tuesday for production and other hourly employees is unusual in that the Japanese automaker typically increases wages twice a year. The raise amounts to a 9.2 percent increase for top-tier hourly employees above the wages Toyota put into effect Sept. 25.

The raise comes as the UAW reached tentative agreements with the Detroit 3 on lucrative new contracts. As to whether there is a direct causal link, the spokesman referred to a written statement from Chris Reynolds, executive vice president for corporate resources at Toyota Motor North America.

"At Toyota, we take great pride in showing respect for people. 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," Reynolds' statement said. The spokesman declined further comment on the matter.

For skilled trades employees, the top wage will rise to $43.20 an hour, up $3.70 from the $39.50 that went into effect Sept. 25.

Wage progression, or the number of years it takes for a new employee to reach top scale, is cut from eight to four years. In addition, paid time off increases for all employees, including temporary employees, the spokesman confirmed.