Hyundai Motor announced on Monday that it will increase wages for nonunion production workers at its Alabama factory by 25% by 2028. This comes shortly after the United Auto Workers (UAW) secured new contracts with the Detroit Three automakers.
Following suit, Hyundai joins Toyota Motor and Honda Motor in raising wages at their U.S. factories, following the UAW’s successful negotiation with General Motors, Ford Motor, and Stellantis. The wage increases for the Detroit Three automakers amount to 33% when factoring in expected cost-of-living adjustments.
Hyundai stated that its hourly workers at the Alabama factory will have received a 14% wage increase over the past year, including a new raise set for January. Additionally, Hyundai Motor Group plans to implement higher wages at its upcoming electric vehicle factory in Georgia, scheduled to open in 2025.
The decision to raise wages is driven by Hyundai’s aim to remain competitive as well as to attract and retain top talent. The company currently produces the Santa Fe, Tucson, Santa Cruz, and Genesis GV70 vehicles in Montgomery, Alabama.
In a similar move, Honda recently announced an 11% pay hike for its U.S. production workers starting in January, along with a reduction in the time required for factory workers to reach the top wage tier. Honda’s decision aligns with concessions made by the UAW in its recent negotiations.
Nonunion automakers, including Honda, have faced pressure to improve pay and benefits following the UAW’s record-breaking contracts achieved in late October after a strike by thousands of its members.
Notably, U.S. President Joe Biden publicly expressed support for the UAW’s push to unionize Tesla and Toyota when he visited Illinois last week. He stated that all U.S. auto workers deserve a deal similar to the UAW’s agreements with the Detroit Three.