Following the US Big 3 Automakers' Raises
Historic Wage Agreement Reached by US Auto Workers Union
Hyundai Motor's U.S. subsidiary has decided to increase production workers' wages at its Alabama plant by 25% by 2028. Just next year, wages are expected to rise by 14% compared to this year.
According to foreign media reports including the AP on the 13th (local time), Hyundai Motor has joined the ranks of U.S. subsidiaries raising production workers' wages, following Honda and Toyota. This comes shortly after the United Auto Workers (UAW) union reached a wage negotiation agreement with U.S. automakers after a month and a half-long strike.
Earlier, on September 15, the UAW demanded a 40% wage increase and simultaneously went on strike at the U.S. Big Three automakers (GM, Ford, Stellantis). The union pointed out that during the 2008 financial crisis, workers supported employers, but the companies did not compensate for wage increases.
This strike was carried out with unprecedented intensity. It is reported that about 40,000 out of the total 150,000 union members participated in the strike. Eventually, Ford and Stellantis took the lead in negotiations and agreed to raise wages by 25% over four and a half years, followed by GM joining the negotiation table.
U.S. President Joe Biden also welcomed the news of the wage negotiations, calling it a "historic agreement" and stating that "record wage increases, more paid leave, and greater post-retirement guarantees have been achieved."
Hyundai Motor's wage increase is interpreted as keeping pace with the salary hikes of the U.S. Big Three automakers. Hyundai also emphasized that its Alabama plant successfully prepared for the production of the soon-to-be-launched All-New Santa Fe and Genesis electric vehicle GV70 in the U.S. market, achieving this year's production targets.
Additionally, the company shortened the period to reach the highest wage level at the plant to 30 months and provides 25 days of vacation to employees with 15 years of service.
Regarding this, Jose Munoz, Hyundai Motor's Global Chief Operating Officer (COO), said, "Hyundai Motor has the industry's best employees and provides compensation that matches them," adding, "We will continue to strive to maintain competitive wages and benefits comparable to peer companies."
Meanwhile, Japanese automaker Toyota plans to increase production workers' wages at its U.S. subsidiary by 9% starting January next year. Honda also promised an 11% increase and plans to shorten the period to reach the highest wage level.
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