Hyundai Joins Honda and Toyota in Offering Pay Raises to Manufacturing Workers

Introduction

In response to the United Auto Workers (UAW) settling contract negotiations in Detroit, Honda and Toyota have already offered pay raises to their employees. Now, Hyundai has joined the trend by promising a 25 percent increase in pay for its manufacturing workers by 2028.

Hyundai Matches UAW Offer

While Honda is offering an 11 percent raise, Hyundai’s offer exceeds that with a 25 percent increase. This move by Hyundai seems to be a direct response to the UAW’s plans to unionize more automakers.

Previous Raises and Benefits

Earlier this year, Hyundai workers received raises, and the Alabama factory already has a wage progression timeline of 2.5 years. Additionally, after 15 years of service, staff members are offered 25 vacation days. However, the wage progression timeline at Hyundai is one of the shortest in the industry.

Competitive Wages

While the exact figures are not available, it is estimated that the average American worker at Hyundai earns around $26 per hour before the recent pay increases. This is competitive for entry-level assembly line positions. However, UAW workers are likely to have a more comprehensive benefits package, which union leadership may use to encourage other factories to unionize.

Kia’s Plans

As of now, there is no news on whether Kia, a subsidiary of Hyundai Motor Group, will offer similar pay raises. Kia operates as a separate business entity in the United States, and any changes in payment would affect Kia Manufacturing Georgia until the Savannah EV Plant becomes operational.

[Image: Hyundai Motor Group]

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