Following the tentative deals between Shawn Fein's United Auto Workers and the likes of Detroit's Big Three automakers, Ford F, General Motors GM and Stellantis STLA, another non-union manufacturer has heard the bugle call for change from its workforce and is joining the pact.
Related: The landmark agreement between the UAW auto union and GM is facing a major hurdle
As reported by Automotive News, Honda HMC is increasing wages of its U.S.-based manufacturing workers by 11%.
According to a Honda spokesperson, these increases will go into effect in January 2024 and the wage progression timeline from base pay to top wage will be condensed from six years to three years.
The spokesperson did not tell AN if Honda’s decision was directly tied to the tentative agreements between the big three and the UAW, but they did say the Japanese manufacturer will “continue to look for opportunities to ensure [it] provides an excellent employment experience for Honda associates.”
Currently, Honda operates 12 manufacturing plants in the United States, including its Marysville Auto Plant in Marysville, Ohio, which became is the first stateside Japanese car plant in 1982.
The makers of the Civic and Accord are also spending $4.4 billion to retool the historic plant and other plants in the state to produce electric vehicles and its components. In addition, Honda is building a battery plant as a joint venture with LG Energy Solution to create an EV hub in Ohio that is slated to be operational by late 2024.
According to a document shared to current and potential Honda employees, the manufacturer also offers a long list of benefits including child care reimbursement and student loan repayment to its manufacturing employees.
The announcement by Honda follows an earlier move by fellow Japanese automaker Toyota TM, who raised wages for workers at its U.S. facilities in the wake of the UAW agreements.
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Despite winning historical gains for workers for GM, Ford and Stellantis such as huge raises, cost-of-living adjustments (COLA) and a faster progression to a top wage of $42 per hour, the next move for the UAW is down to its membership. A Facebook post by a UAW chapter in Flint, Michigan showed that nearly 51% of members at the Flint assembly rejected the new contract.
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