Volkswagen follows other non-union automakers and hikes wages 11% for U.S. factory workers

Volkswagen Group said on Wednesday that it would hike salaries for production workers at its Tennessee-based Chattanooga assembly plant by 11 percent, weeks after the UAW won significant pay and benefit hikes from the Detroit 3 automakers.

The German company and other non-union automakers in the U.S. have come under increased pressure to improve pay and benefits following the record contracts achieved by the UAW in late October after thousands of its members went on a six-week targeted strike.

Japanese automakers Honda Motor Co., Toyota Motor Corp. and Nissan Motor Co. have raised wages for non-union U.S. factory workers in recent weeks amid signs that the union is turning its attention to organizing the workforce at foreign-owned and Tesla auto plants.
 

Hyundai Motor Co. has also announced a 25 percent increase over the next four years for non-union production workers in Alabama and Georgia.

UAW President Shawn Fain told Reuters last week that the union was getting expressions of interest in organizing from many Tesla workers.

The Elon Musk-led company, which enjoys an operating profit advantage over other automakers, has not announced any salary hikes in the U.S.

Volkswagen's pay increase is effective from December, with a compressed wage progression timeline beginning in February.