Nissan Boosts US Factory Workers’ Pay Following UAW Contracts
In a move to attract and retain top talent within the industry, Nissan Motor Co. has announced a 10% pay raise for its 9,000 US factory workers starting in January. Additionally, the tiered pay structure will be eliminated, ensuring all workers receive the top pay rate. This decision follows similar actions by nonunion automakers including Toyota, Honda, Hyundai, and Subaru, who have also increased wages for their US factory workers. The United Auto Workers (UAW), who recently secured record contracts with Detroit carmakers, has been instrumental in driving the push for better wages and benefits in the automotive industry.
Boosting Pay and Benefits
Not only is Nissan raising wages, but the company also offers eight weeks of paid parental leave—more than the two weeks won by the UAW in their contracts with other automakers. In addition to this, Nissan already provides paid leave on Juneteenth, which demonstrates their commitment to providing competitive benefits to their employees.
Competition and Unionization
Nonunion automakers such as Nissan have been proactive in increasing pay and benefits for their workers as the UAW aims to organize their US plants. The UAW’s social media campaign urges workers at various automakers, including Nissan, to consider joining the union for a better quality of life and improved working conditions. In response to the recent ratification of contracts with Detroit’s Big Three automakers, President Joe Biden has congratulated the UAW and highlighted that the wage increases have had a positive impact on workers.
UAW Contracts and Compensation
The UAW recently secured a 25% wage increase and a top rate of $42 an hour in contracts ratified by approximately 146,000 workers at General Motors, Ford, and Stellantis. These agreements, which span over four years and eight months, also include the restoration of cost-of-living allowances, resulting in a 33% increase in total compensation.
