Hyundai plans to give non-union workers in its Alabama factory a 25-percent raise by 2028, Reuters reports. This news comes two weeks after the United Auto Workers union won a new contract with the Big Three, ending a strike that lasted more than a month.
Workers will initially be given a 14-percent raise in January, and future raises are planned in the following years to get to that previously mentioned 25-percent figure. Additionally, Hyundai said it plans to increase wages for workers at its Georgia electric vehicle factory that will open in 2025.
According to Hyundai, the reason behind the wage increases is that the Korean automaker wants to “remain competitive and ... recruit and retain top talent.”
Hyundai’s not alone here, either. On Friday, Honda announced plans to give non-union autoworkers in the U.S. an 11-percent raise and halve the number of years needed for new employees to be promoted to the top pay level. And only days after the UAW reached a deal with the Big Three, Toyota said it plans to pay its non-union workers more, as well.
As more automakers announce pay increases for their workers, it’s clear that even non-union workers benefit from a strong union in their industry. Shawn Fain and other union leaders didn’t just get better pay for their union members. They’re also forcing others to treat their workers better, as well.
Hopefully, workers will see that the raises they get are a direct result of the UAW’s bargaining and make it more likely that they’ll unionize, as well. Don’t think the UAW is going to sit idly by and cross its fingers that factories will unionize on their own, though. No, Fain has made it clear that he has both Toyota and Tesla in his sights. It’ll still be an uphill battle, but the deal he got with the Big Three should definitely make that easier.