Toyota Motor Corp. is raising wages for assembly workers in the U.S. after its Detroit car-making 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 January 1, a person familiar with the matter said November 1. 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 U.S. run by General Motors Co., Ford Motor Co. and Stellantis NV.
Read more: UAW Reaches Deal with General Motors, Potentially Ending Strikes
Workers at U.S. 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. 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 October 31 by Labor Notes, a trade publication that supports collective bargaining.
