Toyota is raising the wages of its factory workers — all of them non-unionized — after the UAW strikes at General Motors, Ford and Stellantis culminated in pay hikes for unionized employees.
Why it matters: After reaching tentative deals with the Detroit Three, the UAW is setting its sights on organizing non-unionized automotive plants in the U.S. — with Toyota a possible target.
Driving the news: Toyota spokesman Scott Vazin confirmed Tuesday in an email to Axios that the automaker "did provide wage increases today" for workers at all of its U.S. plants.
The core of the problem is this: People who have been with the company for a number of years were likely affected by the pay cap. New people at the company start at a higher rate that is comparable to what experienced employees are currently making.
If someone has already put in a ton of time and is very knowledgeable about their position may not get a fair adjustment. My wife works at a company that did the same thing, and from experience, it can really suck out the morale of people who are dedicated to the company and had to earn their raises.
I get both sides of the problem. Regardless of experience, companies should offer fair pay from the start of employment. By that same token, experienced and dedicated employees should see an increase in pay that is not capped, and if there is a pay cap, it should be set at a different level to account for their service.
Pay can be a complicated issue and I absolutely won't pretend to know how it is managed at companies with thousands of employees. For me, this is mind boggling.
Edit: I am trying to ask a question and relate it to personal experience. Could the pay increases be more disproportionate than what the article states?