Honda plans 11% raise for U.S. production workers following UAW deals

Honda Motor Co. is increasing wages of U.S. manufacturing workers by 11 percent in the wake of the six-week UAW strike against their Detroit 3 competitors.

A Honda spokesperson confirmed the pay hikes for “production associates” at its U.S. facilities, which will go into effect in January.

The wage progression timeline also was condensed to three years from six, with workers receiving an increase at each “step,” the spokesperson said.

The spokesperson did not comment on whether Honda’s decision was directly tied to the tentative agreements between the Detroit 3 and the UAW as a result of the union’s strike, but they did say the Japanese manufacturer will “continue to look for opportunities to ensure [it] provides an excellent employment experience for Honda associates.”

Honda operates 12 manufacturing plants in the U.S. The company is spending $4.4 billion to construct an electric vehicle hub in Ohio slated to open in late 2024.
 
The hub includes a $3.5 billion battery plant joint venture with LG Energy Solution as well as its Marysville Auto Plant, East Liberty Auto Plant and Anna Engine Plant, which are being upgraded to produce EVs and EV components.

Honda’s wage announcement follows Toyota Motor Corp.’s move this month to raise wages for its U.S. manufacturing, distribution center and logistics employees by 9.2 percent for top-tier hourly employees. 

Under the UAW’s tentative agreements with General Motors, Ford Motor Co. and Stellantis, members will get 11 percent raises as soon as the new contracts are ratified, with wages increasing 25 percent over the life of the contracts. A restoration of cost-of-living adjustments that takes top pay up 33 percent over that time and a faster progression to the top wage of $42 per hour also is part of the proposed deals.

Automotive News reached out to Kia America and Hyundai Motor North America, which operate as separate companies under Hyundai Motor Group and use a nonunion work force, on whether they are considering wage increases for manufacturing employees. Neither responded by the time of publication.

Kia America operates a manufacturing facility in West Point, Ga., and Hyundai has one in Montgomery, Ala. Hyundai Motor Group has committed $7.6 billion to an EV and battery factory, outside Savannah, Ga., where it will build six models under the Hyundai, Genesis and Kia brands and the batteries that power them. It is under construction and is expected to open in January 2025.