Honda hikes production workers' pay 11% after UAW deals with Detroit Three
ReutersUpdated Fri, November 10, 2023
FILE PHOTO: The New York International Auto Show, in Manhattan, New York City
(Reuters) -Honda Motor said on Friday it was implementing an 11% pay hike for production workers at its U.S. facilities from January, days after the United Auto Workers (UAW) union and the Detroit Three automakers agreed to new contracts.
The company also said it would cut the time it takes for a worker to get to the top-wage tier to three years from six, confirming an earlier Wall Street Journal report.
Non-unionized automakers such as Honda have come under pressure to improve pay and benefits following record contracts the UAW won at the Detroit Three automakers.
U.S. President Joe Biden, who has backed UAW efforts to negotiate higher pay for its members, credited the union for Honda's decision.
"Union auto workers own this victory," Biden said in a Friday post on X.
In Illinois on Thursday, Biden backed the UAW's efforts to unionize carmakers Tesla and Toyota, saying all U.S. autoworkers deserve the same deal that the UAW negotiated with the Detroit Three automakers.
Honda, which began manufacturing in America in 1979, currently has 12 plants in the country which produce five million products annually.
The Japanese automaker has over 23,000 employees that help build its products in the United States.
Honda's pay hike comes after Toyota said last week it was raising the wages of its non-union U.S. factory workers.
General Motors, Ford Motor and Chrysler-parent Stellantis have all agreed to hike employee base wages by 25% and restore cost of living allowances (COLA) in deals with the UAW.
Union workers are now voting on contracts from each of Detroit's Big Three automakers.
The UAW has also signaled that the next step in its campaign was to capitalize on its gains in bargaining with the Detroit Three, by launching organizing drives at Toyota, Tesla and other non-union U.S. auto factories.
Honda had told Reuters it was evaluating the recent UAW deals with the Detroit Three automakers and would remain competitive.
(Reporting by Priyamvada C, Nathan Gomes and David Shepardson; Editing by Anil D'Silva, Krishna Chandra Eluri and Aurora Ellis)
Honda to increase pay for US autoworkers following UAW strike
Julia Shapero
Fri, November 10, 2023
Honda plans to increase wages for workers at U.S. factories by 11 percent in January, after the United Auto Workers (UAW) union struck a deal for substantial pay raises and other benefits with three major automakers late last month.
The Japanese automaker will also decrease the time it takes workers to reach the top wage rate from six years to three years, matching similar commitments made by Ford, General Motors (GM) and Stellantis, the company confirmed Friday.
“Honda has been committed to maintaining an excellent employment experience for our production associates since we began manufacturing in America in 1979, including competitive wage and benefit packages and a work environment founded on teamwork, mutual respect, and open communication,” the automaker said in a statement.
The announcement comes less than two weeks after the UAW officially ended its strike against the trio of major U.S. car companies.
Ford, GM and Stellantis all agreed to a 25 percent general wage increase over the life of the 4 1/2-year contract, as well as cost-of-living adjustments and a three-year progression to the top wage rate.
Toyota followed suit just days after the strike concluded, announcing plans to raise wages for hourly manufacturing workers in the U.S. by about 9 percent starting Jan. 1. It will also cut the time it takes to reach the top wage rate to four years.
While addressing a crowd of UAW members in Illinois on Thursday, President Biden touted the wider impact of the union’s negotiations with GM, Stellantis and Ford, pointing to Toyota’s recent decision to raise wages.
“Look folks, these deals are game-changers,” Biden said. “Not only for UAW workers, but for all workers in America. Just ask the folks at Toyota, which last week announced it would significantly finally increase wages for their workers. They had no choice because of what you did. You helped everybody.”
Foreign automakers are also facing increased pressure, as the UAW turns its attention to organizing at nonunionized factories.
“One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before,” UAW President Shawn Fain said last month. “When we return to the bargaining table in 2028, it won’t just be with the Big Three. It will be the Big Five or Big Six.”
Honda to boost production associates wage by 11% in January
Mark Williams, Columbus Dispatch
Updated Fri, November 10, 2023
Honda associates Rick VanGundy (front left) and Mike Rausch applaud the new Accord made at the Marysville Auto Plant. Governor Mike DeWine (right) also attended the January, 2023, unveiling. Pulling the cover off the back of the car is (from left) Melanie Albert, Ken Smith, Zac Latimer and Malov Oza.
Honda production workers in Ohio and elsewhere in the U.S. will get an 11% raise on Jan. 1, the automaker said Friday.
"Honda has been committed to maintaining an excellent employment experience for our production associates since we began manufacturing in America in 1979, including competitive wage and benefit packages and a work environment founded on teamwork, mutual respect, and open communication," the company said in a statement it shared with workers.
More: Honda EV battery plant in Fayette County to seek employees for year-long training
"Honda greatly values all of our associates and the many contributions they make to our customers and our communities, and over the past two years we have made a number of changes to our benefits packages, which will continue with changes to compensation for production associates at our U.S. facilities, which will take effect in January 2024.”
Honda wage hikes follow UAW strike
The bump in wages comes just after the United Auto Workers ended a strike against Ford, General Motors and Stellantis that resulted in most workers receiving a 25% increase and cost-of-living adjustments over the life of the contract, which expires in April 2028.
The 11% increase for Honda workers matches the initial increase that UAW members will receive under their new contract.
UAW workers in the top wage will get more than $42 an hour, according to media reports. Honda did not say what the average hourly pay is for production workers.
How will EV transition impact workers?
The wage increase for Honda production associates comes as the automaker is transitioning to electric vehicles that may not require as many workers to produce.
A worker installs interior components into a Honda CR-V on the assembly line at the Honda manufacturing plant in Marysville in 2018.
Honda and LG Energy Solution are building a plant near Jeffersonville to make batteries for Honda EVs. Honda also is investing $700 million to retool the Marysville Auto Plant, the East Liberty Auto Plant and the Anna Engine Plant as part of a plan to establish an EV hub in Ohio that will produce battery-powered vehicles beginning in 2026.
Honda says it is not sharing anything further on workers' wage due to what it says is the "proprietary and personal nature of associate compensation."
Other benefit changes for Honda workers
Beyond wages, Honda says that since 2021 it has added more than 10 new benefits and programs, including childcare reimbursement and student loan repayment.
In addition, the wage progression for production associates will change from a six-year progression to a three-year progression, and associates will receive an increase at each step.
Honda has 17,000 associates at eight production sites in the U.S., including about 9,400 in its Marysville-area operations.
"We will continue to look for opportunities to ensure that we provide an excellent employment experience for Honda associates," the company said.
mawilliams@dispatch.com
@BizMarkWilliams
This article originally appeared on The Columbus Dispatch: Honda boosting pay, expanding other employee benefit programs
Julia Shapero
Fri, November 10, 2023
Honda plans to increase wages for workers at U.S. factories by 11 percent in January, after the United Auto Workers (UAW) union struck a deal for substantial pay raises and other benefits with three major automakers late last month.
The Japanese automaker will also decrease the time it takes workers to reach the top wage rate from six years to three years, matching similar commitments made by Ford, General Motors (GM) and Stellantis, the company confirmed Friday.
“Honda has been committed to maintaining an excellent employment experience for our production associates since we began manufacturing in America in 1979, including competitive wage and benefit packages and a work environment founded on teamwork, mutual respect, and open communication,” the automaker said in a statement.
The announcement comes less than two weeks after the UAW officially ended its strike against the trio of major U.S. car companies.
Ford, GM and Stellantis all agreed to a 25 percent general wage increase over the life of the 4 1/2-year contract, as well as cost-of-living adjustments and a three-year progression to the top wage rate.
Toyota followed suit just days after the strike concluded, announcing plans to raise wages for hourly manufacturing workers in the U.S. by about 9 percent starting Jan. 1. It will also cut the time it takes to reach the top wage rate to four years.
While addressing a crowd of UAW members in Illinois on Thursday, President Biden touted the wider impact of the union’s negotiations with GM, Stellantis and Ford, pointing to Toyota’s recent decision to raise wages.
“Look folks, these deals are game-changers,” Biden said. “Not only for UAW workers, but for all workers in America. Just ask the folks at Toyota, which last week announced it would significantly finally increase wages for their workers. They had no choice because of what you did. You helped everybody.”
Foreign automakers are also facing increased pressure, as the UAW turns its attention to organizing at nonunionized factories.
“One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before,” UAW President Shawn Fain said last month. “When we return to the bargaining table in 2028, it won’t just be with the Big Three. It will be the Big Five or Big Six.”
Honda to boost production associates wage by 11% in January
Mark Williams, Columbus Dispatch
Updated Fri, November 10, 2023
Honda associates Rick VanGundy (front left) and Mike Rausch applaud the new Accord made at the Marysville Auto Plant. Governor Mike DeWine (right) also attended the January, 2023, unveiling. Pulling the cover off the back of the car is (from left) Melanie Albert, Ken Smith, Zac Latimer and Malov Oza.
Honda production workers in Ohio and elsewhere in the U.S. will get an 11% raise on Jan. 1, the automaker said Friday.
"Honda has been committed to maintaining an excellent employment experience for our production associates since we began manufacturing in America in 1979, including competitive wage and benefit packages and a work environment founded on teamwork, mutual respect, and open communication," the company said in a statement it shared with workers.
More: Honda EV battery plant in Fayette County to seek employees for year-long training
"Honda greatly values all of our associates and the many contributions they make to our customers and our communities, and over the past two years we have made a number of changes to our benefits packages, which will continue with changes to compensation for production associates at our U.S. facilities, which will take effect in January 2024.”
Honda wage hikes follow UAW strike
The bump in wages comes just after the United Auto Workers ended a strike against Ford, General Motors and Stellantis that resulted in most workers receiving a 25% increase and cost-of-living adjustments over the life of the contract, which expires in April 2028.
The 11% increase for Honda workers matches the initial increase that UAW members will receive under their new contract.
UAW workers in the top wage will get more than $42 an hour, according to media reports. Honda did not say what the average hourly pay is for production workers.
How will EV transition impact workers?
The wage increase for Honda production associates comes as the automaker is transitioning to electric vehicles that may not require as many workers to produce.
A worker installs interior components into a Honda CR-V on the assembly line at the Honda manufacturing plant in Marysville in 2018.
Honda and LG Energy Solution are building a plant near Jeffersonville to make batteries for Honda EVs. Honda also is investing $700 million to retool the Marysville Auto Plant, the East Liberty Auto Plant and the Anna Engine Plant as part of a plan to establish an EV hub in Ohio that will produce battery-powered vehicles beginning in 2026.
Honda says it is not sharing anything further on workers' wage due to what it says is the "proprietary and personal nature of associate compensation."
Other benefit changes for Honda workers
Beyond wages, Honda says that since 2021 it has added more than 10 new benefits and programs, including childcare reimbursement and student loan repayment.
In addition, the wage progression for production associates will change from a six-year progression to a three-year progression, and associates will receive an increase at each step.
Honda has 17,000 associates at eight production sites in the U.S., including about 9,400 in its Marysville-area operations.
"We will continue to look for opportunities to ensure that we provide an excellent employment experience for Honda associates," the company said.
mawilliams@dispatch.com
@BizMarkWilliams
This article originally appeared on The Columbus Dispatch: Honda boosting pay, expanding other employee benefit programs
Honda is making a big step to protect against the threat from the UAW union
Moves are being made for workers at the Japanese auto maker amidst UAW resolutions.
James Ochoa
Nov 10, 2023
Following the tentative deals between Shawn Fein's United Auto Workers and the likes of Detroit's Big Three automakers, Ford (F) - Get Free Report, General Motors (GM) - Get Free Report and Stellantis (STLA) - Get Free Report, another non-union manufacturer has heard the bugle call for change from its workforce and is joining the pact.
As reported by Automotive News, Honda (HMC) - Get Free Report is increasing wages of its U.S.-based manufacturing workers by 11%.
According to a Honda spokesperson, these increases will go into effect in January 2024 and the wage progression timeline from base pay to top wage will be condensed from six years to three years.
The spokesperson did not tell AN if Honda’s decision was directly tied to the tentative agreements between the big three and the UAW, but they did say the Japanese manufacturer will “continue to look for opportunities to ensure [it] provides an excellent employment experience for Honda associates.”
A production associate adjusts his hat while working between 2018 Honda Accord vehicles
Currently, Honda operates 12 manufacturing plants in the United States, including its Marysville Auto Plant in Marysville, Ohio, which became is the first stateside Japanese car plant in 1982.
The makers of the Civic and Accord are also spending $4.4 billion to retool the historic plant and other plants in the state to produce electric vehicles and its components. In addition, Honda is building a battery plant as a joint venture with LG Energy Solution to create an EV hub in Ohio that is slated to be operational by late 2024
According to a document shared to current and potential Honda employees, the manufacturer also offers a long list of benefits including child care reimbursement and student loan repayment to its manufacturing employees.
The announcement by Honda follows an earlier move by fellow Japanese automaker Toyota (TM) - Get Free Report, who raised wages for workers at its U.S. facilities in the wake of the UAW agreements.
Moves are being made for workers at the Japanese auto maker amidst UAW resolutions.
James Ochoa
Nov 10, 2023
Following the tentative deals between Shawn Fein's United Auto Workers and the likes of Detroit's Big Three automakers, Ford (F) - Get Free Report, General Motors (GM) - Get Free Report and Stellantis (STLA) - Get Free Report, another non-union manufacturer has heard the bugle call for change from its workforce and is joining the pact.
As reported by Automotive News, Honda (HMC) - Get Free Report is increasing wages of its U.S.-based manufacturing workers by 11%.
According to a Honda spokesperson, these increases will go into effect in January 2024 and the wage progression timeline from base pay to top wage will be condensed from six years to three years.
The spokesperson did not tell AN if Honda’s decision was directly tied to the tentative agreements between the big three and the UAW, but they did say the Japanese manufacturer will “continue to look for opportunities to ensure [it] provides an excellent employment experience for Honda associates.”
A production associate adjusts his hat while working between 2018 Honda Accord vehicles
Currently, Honda operates 12 manufacturing plants in the United States, including its Marysville Auto Plant in Marysville, Ohio, which became is the first stateside Japanese car plant in 1982.
The makers of the Civic and Accord are also spending $4.4 billion to retool the historic plant and other plants in the state to produce electric vehicles and its components. In addition, Honda is building a battery plant as a joint venture with LG Energy Solution to create an EV hub in Ohio that is slated to be operational by late 2024
According to a document shared to current and potential Honda employees, the manufacturer also offers a long list of benefits including child care reimbursement and student loan repayment to its manufacturing employees.
The announcement by Honda follows an earlier move by fellow Japanese automaker Toyota (TM) - Get Free Report, who raised wages for workers at its U.S. facilities in the wake of the UAW agreements.
Despite winning historical gains for workers for GM, Ford and Stellantis such as huge raises, cost-of-living adjustments (COLA) and a faster progression to a top wage of $42 per hour, the next move for the UAW is down to its membership. A Facebook post by a UAW chapter in Flint, Michigan showed that nearly 51% of members at the Flint assembly rejected the new contract.
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