Hyundai Motor Co. recently revealed plans to implement wage increases for its U.S. production hourly workers, starting in January. The company aims to increase wages by 25% by 2028. This decision follows similar actions taken by Toyota and Honda, who have also raised pay as part of their agreements with the United Auto Workers (UAW).
The intention behind these wage increases is to help Hyundai remain competitive in the industry and attract and retain top talent. Workers at Hyundai Motor Manufacturing Alabama have been producing vehicles at the plant in Montgomery since 2005. Additionally, Hyundai’s new electric vehicle-dedicated plant in Bryan County, Georgia is set to commence production in early 2025.
By the beginning of 2024, production workers at the Alabama plant will have seen a 14% increase in their pay over the past year. Hyundai’s wage progression to the top rate occurs after two-and-a-half years of work. Furthermore, the automaker provides 25 vacation days to workers with 15 years of service, demonstrating its commitment to recognizing and rewarding its employees.
José Muñoz, the president and global COO of Hyundai Motor Company, emphasized that the company values its team members and compensates them accordingly. This move by Hyundai aligns with the UAW’s efforts to negotiate significant wage increases at General Motors Co., Stellantis NV, and Ford Motor Co. for its 146,000 autoworkers. These agreements include compounded wage increases, cost-of-living adjustments, increased retirement contributions, investments, product allocation, and a pathway to full-time positions for temporary or supplemental workers.
The trend of wage increases in the automotive industry is not limited to Hyundai, as Honda Motor Co. Ltd. and Toyota Motor Corp. have also announced similar wage hikes for their U.S. production employees. Currently, UAW-represented autoworkers are in the process of voting on the negotiated deals.
In conclusion, Hyundai Motor Co. is set to implement wage increases for its U.S. production hourly workers, following the footsteps of other automakers in the industry. The move aims to remain competitive, attract top talent, and acknowledge the contributions of its employees.