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Subaru to raise wages after similar moves by nonunionized automakers

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Subaru will raise U.S. autoworkers’ wages following similar pay hikes by Toyota, Hyundai and Honda, which all were announced after the UAW negotiated labor deals with the Big Three, CEO Atsushi Osaki told Reuters on Thursday at the Los Angeles Auto Show.

The amount of Subaru’s pay raise amounts have not been determined, according to Reuters, but Osaki said through an interpreter that they will be “in line with industry levels” after the new UAW deals. The timing of the raises is also unclear.

“Subaru of Indiana Automotive consistently reviews and responds to market conditions in a responsible and appropriate manner,” a Subaru spokesperson said in an email.

Subaru operates a single U.S. assembly plant, in Lafayette, Indiana. The factory employs more than 5,600 associates and is currently the North American production home of the Subaru Ascent, Crosstrek, Legacy and Outback models.  

Earlier this month, Toyota said it would raise wages 9%, Honda said pay would go up by 11% and Hyundai said its production workers would see increases of 25% by 2028. 

Honda is also reducing the time it takes to reach top wages from six years to three. Toyota agreed to shorten the timeline to reach top pay from eight to four years, according to Labor Notes

Like Toyota, Honda and Hyundai, Subaru’s production workers are not represented by the UAW.

UAW-represented workers at General Motors were the first to approve the new contracts that will provide incremental wage increases of 25% over the next four and a half years. On Friday, Union-represented autoworkers at Stellantis and Ford voted to approve their tentative labor agreements with the UAW.

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