Subaru will increase wages for its U.S. autoworkers following the ratification of new labor contracts between the UAW labor union and Big Three Detroit automakers (General Motors, Ford, and Stellantis). Although details of the wage increase are still under wraps, Subaru workers are expected to receive pay bumps in line with the latest industry standards following the new UAW deals. Several other foreign automakers have also indicated new wage boosts for U.S. workers in light of the latest UAW contracts.
Per a report from Reuters, Subaru President and CEO, Atsushi Osaki announced the pending wage increase at the 2023 Los Angeles Auto Show. The Japanese automaker operates an assembly facility in Lafayette, Indiana, where the Ascent, Impreza, Legacy, and Outback are produced. Although Osaki originally stated that workers would receive new benefits in addition to increased compensation, the company later clarified that Subaru is still considering whether or not to include new benefits.
Subaru is the latest non-union automaker to announce wage increases for its U.S. workers, with Toyota, Honda, and Hyundai announcing similar compensation boosts. The latest UAW deals between the union and Big Detroit Three include a 25-percent pay increase through 2028, with cost of living adjustments (COLA) expected to increase wages by as much as 30 percent by the end of the contract. The time required to reach the top-tier wages was significantly reduced, while vacation time, holidays, and retirement contributions were all increased. The new agreements were reached after a contentious negotiating period that included a six-week strike, with the UAW calling for an initial round of walkouts on September 15th following the expiration of the previous labor contract. The UAW represents roughly 146,000 workers across the Big Detroit Three.
In response to the recent round of wage increases at non-union U.S. facilities, UAW President Shawn Fain quipped that the UAW acronym stands for “U are welcome.”