Atsushi Osaki, CEO of Japanese automaker Subaru, told the media on Thursday that Subaru will raise the salaries and benefits of American factory workers in view of the new labor agreement reached between the auto union and the three major Detroit automakers.
Osaki stated at the Los Angeles Auto Show that the salary increase for workers at the Lafite assembly plant in Indiana has not yet been determined, but will be consistent with the industry level after reaching a new labor agreement with the UAW, GM, Ford, and Chrysler parent company Stellantis.
He stated that the salary increase will include improving benefits such as healthcare, rather than just salary increases.
After a six week strike by American car workers, UAW reached a record breaking labor agreement with General Motors, Ford, and Stellantis NV at the end of last month.
The agreement will increase workers' wages by 25% over four years and provide them with cost of living subsidies and other improved benefits. If the cost of living adjustment is taken into account, the actual wage increase can reach as high as 33%.
After achieving a historic victory in the struggle against the automotive giants, UAW has warned that it will shift its focus to non unionized car companies such as Tesla. This puts pressure on non unionized automakers in the United States to increase their compensation and benefits.
Since the UAW reached an agreement, some other non union automakers have voluntarily raised wages for American factory workers, including Japanese automakers Toyota, Honda, and Korean automaker Hyundai. UAW Chairman Sean Finn has welcomed the wage increase from non union car factories.
US President Biden supports UAW's efforts to include automakers such as Tesla and Toyota in unions, stating that "all American car workers should receive agreements similar to those recently reached by UAW with the Detroit Big Three