Honda Increases Factory Workers’ Pay by 11% After UAW Win

Honda Motor Co. has unveiled an 11% salary increase for its U.S. factory workforce, according to a Friday announcement. With this initiative slated to take effect in January, Honda is keeping pace with its counterpart Toyota, which recently declared a 9% wage increase. The move also aligns with the substantial 25% salary augmentation the United Auto Workers (UAW) secured for its 150,000-strong personnel in October.

Honda’s endeavor to enrich its workforce conditions is not a newfound commitment. The company has been persistent in revamping its benefits program since 2021, introducing inclusive measures like child care assistance and student loan repayments. Honda’s announcement not only highlighted the 11% wage hike but also shed light on the accelerated wage progression, which will now take a compressed period of three years instead of six. This pay restructure is set to be a game-changer for employees in Honda’s 12 U.S. plants.

“Honda has been committed to maintaining an excellent employment experience for our production associates since we began manufacturing in America in 1979, including competitive wage and benefit packages and a work environment founded on teamwork, mutual respect and open communication.”

Honda via Spectrum News

The announcement comes after UAW President Shawn Fain’s pledge to bring non-union automakers and factories under the union canopy. Echoing his sentiment is President Joe Biden’s appeal to secure UAW-level contracts “for all autoworkers,” a vision he shared this Thursday. Honda’s recent initiative seems to be a positive response to these calls, reflecting the changing landscape of the auto industry.

Fain’s vigorous commitment to this cause was evident in his mid-October speech to UAW members, where he expressed the union’s ambition to organize non-union automotive companies “like we’ve never organized before.”

The spotlight is now on the Southeast-based automobile factories of foreign automakers, including Honda and Volkswagen AG, that operate without union representation. Tesla Inc., with manufacturing plants in California and Texas, is another automaker that is currently outside of UAW’s purview.

September saw auto workers initiating a six-week-long strike that targeted several facilities operated by Ford Motor Co., General Motors Co., and Stellantis NV. Deviating from the conventional method of striking at one company at a time, the UAW termed this labor action a “stand-up strike.” This strategy invited selected local unions to take a stand and walk out, marking a significant departure from the UAW’s traditional approach of conserving its picket-line strength and strike fund.