Report: Toyota Boosts Wages Ahead of UAW Ratification Votes

by Matt Posky

Published: November 1st, 2023

report toyota boosts wages ahead of uaw ratification votes

While the United Automobile Workers (UAW) are preparing to vote on contract proposals offered by Ford, General Motors, and Stellantis, non-union Toyota is increasing hourly wages. Hourly compensation has increased for the automaker’s U.S. manufacturing, distribution center, and logistics employees. It’s also offering more paid time off than before and reducing the time it takes for workers to reach top-tier compensation.

Considering Toyota had already issued two pay bumps for 2023, seeing a third is a bit of a surprise and likely has everything to do with the results of the UAW strike.

Based on reporting from Automotive News, it even looks like Toyota may have been bench-marking the new union contracts. Hourly wages are coming up a little more than 9 percent, resulting in a payment scheme that will look similar to what the domestic brands are offering when it goes into effect at the start of 2024.

From Automotive News:

The third increase, which goes into effect Jan. 1, was announced just over a month after Toyota raised wages 25 cents an hour to $31.86 for its production workers, effective Sept. 25.

The $2.94 raise announced Tuesday for production and other hourly employees is unusual in that the Japanese automaker typically increases wages twice a year. The raise amounts to a 9.2 percent increase for top-tier hourly employees above the wages Toyota put into effect Sept. 25.

The raise comes as the UAW reached tentative agreements with the Detroit 3 on lucrative new contracts. As to whether there is a direct causal link, the spokesman referred to a written statement from Chris Reynolds, executive vice president for corporate resources at Toyota Motor North America.

Skilled trades employees are said to be eligible for up to $43.20 an hour. That’s $3.70 more than the previous arrangement that went into action on September 25th. Wage progression has likewise been made shorter, now taking just four years (rather than eight) for new employees to reach the upper echelons of the payment pyramid.

"At Toyota, we take great pride in showing respect for people. We value our employees and their contributions, and we show it by offering robust compensation packages that we continually review to ensure that we remain competitive within the automotive industry," a Toyota spokesperson stated.

[Image: Toyota]

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Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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2 of 76 comments

Wjtinfwb on Nov 02, 2023

Very disingenuous reply. The only reason OPEC and exports of oil have affected oil prices is we’re no longer producing a surplus of oil that meets 100% of the US’s oil needs as well as a surplus we can export after US requirements are met. Our ability to export excess oil created a surplus of oil in the global market driving down the price. Once that surplus was eliminated through the Biden Administration policies, the glut dried up and prices rose. We still export, at our own peril, to stabilize the global market and provide an alternative to Russian production, which would enhance their economy and further fund their war on Ukraine. Our reduced production capacity reduced supply which Abe economist would tell you will drive up prices unless demand is reduced by a commensurate amount. Right?

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Kcflyer on Nov 02, 2023

Trump dumps trillions in the money supply to feed hungry pols on his way out. Biden dumps trillions more on his way in to feed same scum. Three years later the price of everything we buy in the U.S. is up 30 to 200 percent. But yeah, inflation was caused by wage increases.

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