Hyundai to raise hourly pay 25% by 2028 following UAW deal

Korean automaker, Hyundai Motor 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: TM) and Honda Motor (NYSE: HMC) by increasing U.S. factory wages, a move that comes after the UAW secured a fresh contract with General Motors (NYSE: GM), Ford Motor (NYSE: F), and Stellantis (NYSE: STLA), 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.”

By Michael Elkins | [email protected]

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