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Nissan Motor Raises Wages at US Auto Plants After Union Deal

Nissan Motor has announced plans to increase wages for workers at its US manufacturing plants by 10% starting in January 2023. This move comes after the United Auto Workers (UAW) union reached new contracts with the Detroit Three automakers.

The wage hike will benefit production technicians, maintenance workers, and tool & die technicians, while workers who are not yet at the top scale will also see wage increases. In total, approximately 9,000 US workers will receive pay hikes.

Additionally, Nissan has decided to eliminate wage tiers for its US production workers. Other automakers, including Hyundai, Toyota, and Honda, have also announced wage hikes for their US factory workers following the UAW contract negotiations. The UAW has expressed its intention to organize nonunion plants operated by foreign automakers and Tesla.

Credit: DepositPhotos

Nissan has stated that these pay increases are a reflection of the company’s commitment to its employees in the United States and its efforts to enhance competitiveness. Under the UAW labor agreements with General Motors, Ford Motor, and Stellantis, base wages will increase by 25% through 2028, with an immediate 11% raise. The top wage will see a cumulative increase of 33%, reaching over $42 per hour when factoring in estimated cost-of-living adjustments.

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The new contracts also aim to improve working conditions, reducing the number of years required to reach top pay from eight to three years. Temporary workers will benefit from a 150% pay increase and will be offered permanent positions. The agreements also include significant retirement improvements.

For years, the UAW has been attempting to organize auto factories operated by foreign automakers, but with little success. UAW President Shawn Fain recently visited Washington to discuss the union’s organizing strategy. President Joe Biden has expressed support for the UAW in its efforts to unionize other car manufacturers.

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Credit: DepositPhotos

Over the past three years, Nissan has already increased wages at its three manufacturing sites by a total of 12-18.5%. The company has also reduced the time needed to reach top pay from eight years to four, introduced two additional paid holidays, and enhanced paid parental leave for production workers.

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