Toyota Issues Raises to US Workers as UAW Target Shifts to Non-Union Automakers

All of the Big Three Detroit automakers struck historic deals with the United Auto Workers (UAW) union, raising pay, providing cost-of-living wages, and improving retirement benefits. However, there won't be similar deals made with other automakers that build cars in the U.S., because their workers are not unionized. After the UAW strike and its subsequent new contracts, Toyota is giving its factory workers raises, which seems like a not-so-subtle way of asking those workers not to organize.

The UAW is already discussing the idea of expanding into other automakers in the U.S., namely Tesla. In fact, a story from Bloomberg this week citing an individual familiar with the efforts stated that a UAW organizing committee is active in the EV maker's Fremont plant "talking to coworkers about the advantages of collective bargaining." What's more, Toyota, Volkswagen, and other brands could be next.

"When we return to the bargaining table in 2028, it won’t just be with a Big Three, but with a Big Five or Big Six," said UAW President Shawn Fain on Sunday.