On November 16, Subaru’s CEO, Atsushi Osaki, revealed that the company will increase its employees’ wages at its U.S. facility in response to the recent labor agreements made by the Detroit Three automakers and the United Auto Workers (UAW) union.
Through an interpreter at the Los Angeles auto show, Osaki stated that the size of the raises for employees at Subaru’s Lafayette, Indiana assembly plant will be in line with industry norms following the UAW’s contracts with General Motors, Ford, and Stellantis.
The Detroit Three’s union contracts will result in wage hikes of 25% through 2028, amounting to 33% when planned cost-of-living adjustments are accounted for. Osaki also stated that the increased compensation would include benefits such as improved healthcare.Â
Following the record contracts that the UAW secured in late October, around six weeks after thousands of its members went on strike, Subaru and other non-union automakers in the U.S. have faced pressure to increase wages and benefits.Â
U.S. President Joe Biden, who has endorsed UAW efforts to secure higher compensation for its members, has argued that all auto workers in the U.S. deserve the same agreement that the UAW negotiated with Detroit automakers.
In reaction to the growing pay at the non-union plants, UAW President Shawn Fain declared that “UAW” stands for “U are welcome.” He has pledged that, in contrast to previous years, the UAW will actively organize the non-union American factories of international manufacturers like Tesla.
