'Honda Gives U.S. Factory Workers 11% Pay Bump Following UAW Wins In Detroit; Japanese Automaker Follows Toyota's Lead In Keeping Pay Competitive For Assembly-Line Workers' - WSJ
Portfolio Pulse from Benzinga Newsdesk
Honda Motor is increasing the base wages of many U.S. factory workers by 11%, effective in January. This decision comes after the United Auto Workers (UAW) union achieved significant wage gains in Detroit. Honda is also reducing the time to reach top wages from six to three years, mirroring a similar achievement by the UAW with other automakers.
November 10, 2023 | 3:30 pm
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Honda Motor's decision to increase U.S. factory worker wages by 11% and reduce the time to reach top wages aligns with industry trends and may impact labor costs and competitiveness.
The wage increase for Honda's U.S. factory workers is a response to the UAW's recent wins and is likely to keep Honda competitive in attracting and retaining skilled labor. However, the increased labor costs could put short-term pressure on profit margins. The impact on the stock price is uncertain, as the market may view the move as necessary for long-term competitiveness despite the potential for increased expenses.
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