Hyundai US Hourly Labor Rates to Increase 25%

Hyundai Motor plans to increase the wages for nonunion production workers at its Alabama factory by 25% by 2028. This comes after the United Auto Workers secured new contracts with the Detroit Three automakers.

The Korean car manufacturer is increasing wages for its U.S. factory workers. This decision comes after the UAW (United Automobile Workers) negotiated a new contract with General Motors, Ford Motor, and Chrysler parent Stellantis, which includes a 25% wage increase until 2028. When considering expected cost-of-living adjustments, the total wage hike for the Detroit Three automakers amounts to 33%.

Hyundai announced a wage increase for its hourly workers in Alabama. Over the past year, these workers will have received a raise of 14%. Hyundai Motor Group also plans to increase wages at its upcoming electric-vehicle factory in Georgia, set to open in 2025.

Hyundai is increasing wages to stay competitive and attract skilled workers. They manufacture several vehicles, including the Santa Fe, Tucson, Santa Cruz, and Genesis GV70, in Montgomery, Alabama.

On Friday, Honda announced that it will increase the salaries of its production workers in the United States by 11% starting in January. Additionally, Honda will reduce the time it takes for factory workers to reach the highest wage level from six years to three years. This change is in line with a concession made by the UAW during its recent negotiations.

Honda and other car manufacturers in the United States that are not part of a labor union are facing demands to enhance the wages and benefits they offer. This pressure has emerged after the United Automobile Workers (UAW) reached favorable agreements in late October, just a few weeks after thousands of its members went on strike.

Honda announced a pay hike following Toyota’s decision to increase wages for its nonunion U.S. factory workers.

UAW workers are currently voting on whether to approve those contracts.