Toyota to Hike Pay for US Hourly Workers After UAW-Detroit Deals

Chester Dawson, Bloomberg News

A worker installs components into an automobile on the production line at a Toyota Motor manufacturing plant. , Bloomberg

(Bloomberg) -- Toyota Motor Corp. is raising wages for assembly workers in the US after its Detroit carmaking rivals reached tentative deals with their union to boost pay.

The Japanese auto giant plans to increase the highest wage for most assembly line workers by 9.2% to $34.80 an hour as of Jan. 1, a person familiar with the matter said Wednesday.

The move by Toyota follows major compensation gains negotiated by the United Auto Workers union on behalf of hourly workers it represents at plants in the US run by General Motors Co., Ford Motor Co. and Stellantis NV. Workers at US plants operated by Toyota, like other foreign brands and Tesla Inc., are not unionized. But UAW President Shawn Fain has vowed to expand his union’s reach beyond the Detroit three by 2028.

Read more: Tesla and Anti-Union Elon Musk Are Enticing Next Targets for UAW

Toyota currently operates nine auto parts and vehicle assembly plants across eight states and is building a new battery production facility in North Carolina.

The wage hike by Toyota was reported Tuesday by Labor Notes, a trade publication that supports collective bargaining.

--With assistance from Dana Hull.