Toyota 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.
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.