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Homebusiness worldHyundai to hike US hourly wages 25% by 2028 after UAW deal

Hyundai to hike US hourly wages 25% by 2028 after UAW deal

DETROIT: Korean carmaker Hyundai Motor said on Monday (Nov 13) it will hike wages for nonunion production workers at its Alabama factory by 25 per cent by 2028.

The announcement comes just weeks after the United Auto Workers (UAW) won new contracts with the Detroit Three automakers.

The Korean automaker joins Toyota Motor and Honda Motor in raising US factory wages after the UAW won a new contract with General Motors, Ford Motor and Chrysler parent company Stellantis that will result in wage increases of 25 per cent through 2028.

The Detroit Three wage hikes amount to 33 per cent when expected cost-of-living adjustments are factored in.

Hyundai said that with a new raise coming in January, the 4,000 hourly workers at its Alabama factory will have received a wage increase of 14 per cent over the last 12 months.

Hyundai Motor Group also plans higher wages at its electric-vehicle factory in the US state of Georgia that will open in 2025.

Hyundai said that wages are being raised so that the company can “remain competitive and … recruit and retain top talent.” Hyundai builds the Santa Fe, Tucson, Santa Cruz and Genesis GV70 vehicles in Montgomery, Alabama.

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