Honda is following Toyota in bumping U.S. workers’ pay after the United Auto Workers negotiated big pay raises in pending contracts with the big three U.S. automakers.
The Wall Street Journal reported it learned in a memo that was confirmed by a Honda spokesman that Honda is increasing U.S. workers’ base pay by 11% in January. Toyota has said it plans to increase its U.S. workers’ pay by 9%.
The moves follow UAW’s deals with Ford, General Motors and Stellantis that include 25% worker wage increases, plus cost-of-living bumps and other compensation improvements.
The newspaper reported that Honda is also reducing in half the time it takes to reach top pay, a shift similar to Toyota’s.
UAW leadership has said it plans to turn its organizing efforts toward automakers not currently unionized, including the Japanese brands and Tesla, the U.S. electric-vehicle market leader.