Nissan Motor Co. gave its 9,000 U.S. factory workers a 10% raise in January, eliminating a tiered pay structure, becoming the latest non-union automaker to raise wages after the United Auto Workers won record contracts from Detroit automakers.
Nissan’s salary increase comes after similar moves by Toyota Motor Co., Honda Motor Co. and Honda Motor Co. [hotlink]Hyundai Motor[/hotlink] Co. And Subaru Corp. For factory workers in the United States. Nissan told workers on Monday that the raise will take effect on January 8, at which time all of its U.S. plant workers will move to the highest wage rate, ending the practice of paying lower wages to new workers.
“These changes are rooted in our ongoing strategy to attract and retain the best talent within the industry,” Nissan spokesman Brian Brockman 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. The company has already offered Juneteenth as a paid vacation.
Nissan and other non-union automakers have moved quickly to boost wages and benefits for workers as the UAW targets its U.S. factories for organizing. On its Facebook page, the UAW recently told workers at Nissan, Toyota, Honda, Hyundai, Subaru, Tesla, BMW, Mercedes, Mazda, Volkswagen AG and Rivian Automotive that “a better life is out there. It’s up to you to take Actions needed. Join our movement, join the UAW.
On Monday, the UAW officially ratified the latest contracts with Detroit’s Big Three automakers. In a statement, President Joe Biden congratulated the UAW and noted that several American factories of Asian automakers have now also offered significant wage increases. “These contracts show that when unions do well, they raise the wages of 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 Stellantis NV, Chrysler’s parent company. The 4-year and 8-month agreements also restore cost-of-living allowances, which increase total compensation by 33%.
