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Honda offers 11 percent pay raise for US workers

Honda logo at Riverside Retail Park

Honda has announced an 11 percent pay raise for some US employees after the United Auto Workers' landmark contract victories at Detroit rivals.

The pay increase will apply to associates on pay progressions in Ohio, Indiana, and Georgia, effective January 8, 2024.

This move reflects the ongoing efforts by nonunion automakers to improve wages and deter unionization.

Read More: UAW Launches Union Drive At Honda And Subaru

The UAW aims to extend its reach to foreign-owned factories, including Tesla and Rivian Automotive.

The UAW has been actively seeking support from employees at various nonunion automakers through its Facebook page.

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It’s encouraging them to join the union and benefit from improved working conditions.

Read More: GM And UAW Reach Tentative Deal To End Detroit Strikes

Honda's decision to boost wages follows a similar move by Toyota.

The automaker increased the highest wage for most assembly line workers by 9.2 percent earlier this month.

Honda spokesperson Chris Abbruzzese said the company will reduce progression time for production associates at its US facilities.

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He said Honda has introduced over 10 new benefits since 2021, including childcare reimbursement and a student loan repayment program.

The UAW's recent high-profile strike and contract wins have bolstered its efforts to organize at nonunion companies where it has traditionally faced challenges.

The wage increases negotiated by the UAW with General Motors, Ford, and Stellantis include an 11 percent raise upon contract ratification.

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They also secured a 25 percent overall increase over the contract's duration and additional benefits.

UAW President Shawn Fain said such raises directly result from the union's success and signaled intentions to expand organizing efforts beyond the traditional Big Three automakers.

Fain said: “Toyota, if they were doing it out of the kindness of their heart, they could have chosen to do it a year ago.”

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