© Reuters. Hyundai to raise hourly pay 25% by 2028 following UAW deal
Korean automaker, Hyundai Motor (OTC:) announced Monday that the company will raise wages for nonunion production workers at its Alabama factory by 25% by 2028. The announcement comes weeks after the United Auto Workers (UAW) union won substantial concessions from the Detroit Three.
Hyundai follows Toyota Motor (NYSE:) and Honda Motor (NYSE:) by increasing U.S. factory wages, a move that comes after the UAW secured a fresh contract with General Motors (NYSE:), Ford Motor (NYSE:), and Stellantis (NYSE:), the parent company of Chrysler.
The Detroit Three wage hikes amount to 33% when expected cost-of-living adjustments are factored in.
Hyundai said that its Alabama factory’s 4,000 hourly workers will receive a raise in January, resulting in a 14% total increase in pay over the last 12 months.
Additionally, Hyundai Motor Group has outlined intentions to implement higher wages at its upcoming electric-vehicle facility in Georgia, slated to begin operations in 2025.
According to Hyundai, the increase in wages enables the automaker to “remain competitive and … recruit and retain top talent.”
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