Nissan Revs Up US Factory Wages: Nissan Motor (7201.T) is set to raise top wages for its U.S. manufacturing plant workers by 10% starting January 8, in line with new contracts negotiated by the United Auto Workers (UAW) union with the Detroit Three automakers. The pay increase encompasses production technicians, maintenance staff, and tool & die technicians, benefiting around 9,000 U.S. workers. Nissan is also eliminating wage tiers for U.S. production workers, demonstrating its commitment to employee well-being and competitiveness.
This wage adjustment mirrors a broader trend in the automotive industry, with Hyundai Motor (005380.KS), Toyota Motor (7203.T), and Honda Motor (7267.T) all announcing similar U.S. factory wage hikes following UAW negotiations. The UAW labor deals with General Motors (GM.N), Ford Motor, and Stellantis set the tone, including a 25% increase in base wages through 2028, an immediate 11% hike, and an overall 33% cumulative raise in the top wage, factoring in estimated cost-of-living adjustments.
Notably, the contracts also reduced the time needed to reach top pay from eight years to three years, increased the pay of temporary workers by 150%, and facilitated their transition to permanent employees. The agreements also introduced significant retirement improvements, representing a significant step forward for UAW negotiations.
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President Joe Biden’s support for the UAW’s efforts to unionize other carmakers adds a political dimension to these developments. UAW President Shawn Fain’s recent meetings in Washington focused on the union’s organizing strategy, reflecting a longstanding quest to unionize auto factories operated by foreign automakers.
Nissan emphasized its ongoing commitment to employee welfare, highlighting a series of recent measures, including wage increases of 12-18.5% at its three manufacturing sites over the last three years. Additionally, the company reduced the time required to reach top pay from eight to four years, introduced two paid holidays, and enhanced paid parental leave for production workers. This holistic approach underscores Nissan’s dedication to maintaining a competitive edge while prioritizing the well-being of its U.S. workforce.
Our Reader’s Queries
How much raise did UAW get?
General Motors Co., Ford Motor Co., and Chrysler-parent Stellantis NV have just ratified contracts that grant their workers a 25% wage increase and a top rate of $42-an-hour. These agreements, which span 4 years and 8 months, also restore cost-of-living allowances that increase total compensation by 33%. The UAW has successfully negotiated on behalf of approximately 146,000 workers, securing a significant boost in their earnings and benefits.
How much did a factory worker make in 1900?
Back in 1900, factory workers were paid a meager twenty cents per hour, which translated to an annual salary of just six hundred dollars.