Volkswagen becomes the latest automaker to hike wages for U.S. factory workers

(Reuters) – Volkswagen said on Wednesday that it would hike salaries for production workers at its Tennessee-based Chattanooga assembly plant by 11%, weeks after the United Auto Workers union won significant pay and benefit hikes from the Detroit Three automakers.

The German company and other non-union automakers in the U.S. have come under increased pressure to improve pay and benefits following the record contracts achieved by the UAW in late October after thousands of its members went on a six-week targeted strike.

Japanese automakers Honda Motor and Toyota have raised wages for non-union U.S. factory workers in recent weeks amid signs that the union is turning its attention to organizing the workforce at foreign-owned and Tesla auto plants.

Hyundai Motor has also announced a 25% increase over the next four years for non-union production workers in Alabama and Georgia.

UAW President Shawn Fain told Reuters last week that the union was getting expressions of interest in organizing from many Tesla workers.

The Elon Musk-led company, which enjoys an operating profit advantage over other automakers, has not announced any salary hikes in the U.S.

Volkswagen’s pay increase is effective from December, with a compressed wage progression timeline beginning in February.

(Reporting by Mehr Bedi in Bengaluru; Editing by Tasim Zahid)