Nissan Motor Co. is giving its 9,000 US factory workers a 10% raise in January and eliminating a tiered pay structure, becoming the latest nonunion auto manufacturer to boost wages following the United Auto Workers winning record contracts from the Detroit carmakers.
Nissan’s pay hike comes after similar moves by Toyota Motor Corp., Honda Motor Co., [hotlink]Hyundai Motor[/hotlink] Co. and Subaru Corp. for their US factory workers. Nissan told workers Monday the raise takes effect January 8, at which time all its US factory workers will move up to the top pay rate, ending a practice of paying newer workers less.
“These changes are rooted in our ongoing strategy to attract and retain top talent within the industry,” Brian Brockman, a Nissan spokesman, said in a statement.
Nissan also offers eight weeks of paid parental leave, more than the two weeks the UAW won in its new contracts. And the company already offered Juneteenth as a paid holiday.
Nissan and the other nonunion automakers have moved quickly to boost pay and benefits for workers as the UAW targets their US plants for organizing. On its Facebook page, the UAW recently told workers at Nissan, Toyota, Honda, Hyundai, Subaru, Tesla Inc., BMW, Mercedes, Mazda, Volkswagen AG and Rivian Automotive Inc. that “a better life is out there. It’s up to you to take action. Join our movement, and join the UAW.”
On Monday, the UAW formally ratified the last of the contracts with Detroit’s Big Three automakers. In a statement, President Joe Biden congratulated the UAW and noted many Asian automakers’ US plants have now also offered significant wage increases. “These contracts show that when unions do well, it lifts all workers,” he said.
The UAW won a 25% wage increase and a top rate of $42-an-hour in contracts just ratified by about 146,000 workers at General Motors Co., Ford Motor Co. and Chrysler-parent Stellantis NV. The 4-year and 8-month agreements also restore cost-of-living allowances that boost total compensation by 33%.