Nissan (NSANY) Hikes Wages of U.S. Workers After UAW Deal
Nissan NSANY announced a wage hike for its 9,000 US factory workers after the United Auto Workers (“UAW”) reached new contracts with the Detroit Three. The wage hike of 10% will be effective from Jan 8, 2024, for production, maintenance and tool & die technicians. Workers who are not at the top salary scale will also be eligible for the hike.
The automaker also decided to eliminate wage tiers for U.S. production workers. Before Nissan, other foreign automakers like Toyota, Honda, Hyundai and Subaru resorted to pay hikes following an announcement by UAW to organize non-union plants operated by foreign automakers and Tesla.
Per Brian Brockman, spokesperson of Nissan, the move is aimed at attracting and retaining top talents in the industry. The company also stated that the hike reflects its commitment to its employees in the United States.
The UAW agreements with Detroit Three include a 25% hike in base wages through 2028, with an immediate 11% hike. The automakers will cumulatively raise the top salary by 33%, compounded with estimated cost-of-living adjustments.
Nissan also slashed the number of years it takes for an employee to get top pay from eight years to three years. It will increase the wages of temporary workers by 150% and make them permanent employees.
The automaker offers paid parental leave of eight weeks, which is more than two weeks of leave won by the UAW in its new contract. It declared Juneteenth as a paid holiday and also incorporated significant retirement improvements.
Per Nissan, over the last three years, it increased the salary by 12-18.5% at three of its manufacturing sites and previously brought down the time needed to reach top pay from eight years to four years.
Zacks Rank & Key Picks
NSANY currently carries Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Volvo VLVLY and Toyota Motor Corporation TM, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimates for 2023 and 2024 have increased by 28 cents and 13 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings indicates year-over-year growth of 10.6% and 29.7%, respectively. The EPS estimates for 2023 and 2024 have increased by 28 cents and 4 cents, respectively, in the past 30 days.
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Original: Investing Feed: Nissan (NSANY) Hikes Wages of U.S. Workers After UAW Deal