Toyota Hikes Pay on Heels of UAW-Detroit Deals

Assembly Line Workers, Not Part of a Union, to Get Pay Boost Jan. 1
A Toyota on an assembly line
A Toyota on an assembly line. (Milan Jaros/Bloomberg News)

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Toyota Motor Corp. is raising wages for assembly workers in the U.S. 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 Nov. 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. 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 Oct. 31 by Labor Notes, a trade publication that supports collective bargaining.

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