With the targeted strike of facilities run by Detroit's Big Three automakers far in the rear view mirror for the United Auto Workers, the influence that it brought is still spreading far beyond the reaches of Detroit, as many non-union automakers have got the message and increased wages.
In lieu of this, another non-union automaker has joined the bandwagon.
Related: General Motors is making an unexpected move for the upcoming Super Bowl
In an announcement on Wednesday, Volkswagen said that it will hike the salaries of production workers on the lines of Volkswagen's Chattanooga, Tenn. plant.
Effective from December, workers at the Tennessee site will see a pay increase of 11%, as well as a compressed wage progression timeline beginning in February.
Currently, VW (VLKAF) -) produces the Atlas SUV and the ID.4 electric crossover SUV at its Chattanooga plant. The brand also has plans to bring an under-$35,000 EV to the U.S. market, as well as plans to ramp up production of EV components in North America, including a battery factory in Ontario, Canada.
This move comes as the United Auto Workers has ratified a new contract with the big three Detroit automakers that has salary and benefit increases for its membership.
Non-union automakers are currently the target of Shawn Fein's UAW, as Volkswagen has joined the likes of Honda, Toyota and Subaru in raising wages to match the current conditions.
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Notably, Hyundai announced plans to raise wages by 25% over the next four years at its Alabama and Georgia plants.
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