Hyundai is following in Toyota’s footsteps by announcing plans to increase wages for their workforce. This comes after the UAW reached record agreements with the Detroit Three and is looking to expand their reach to other companies.

Getting back to Hyundai, the new wage strategy will go into effect next year and benefit employees at Hyundai Motor Manufacturing Alabama as well as the Hyundai Motor Group Metaplant in Georgia. The automaker says hourly wages will increase 25% by 2028 and they’re increasing pay to “remain competitive’ as well as “recruit and retain top talent.”

More: Toyota Gives Non-Unionized Workforce 9.2% Raise After UAW Deals In Detroit

 Hyundai Will Boost Worker Pay 25% By 2028 After UAW’s Record Deal With Detroit Three

Hyundai went on to say that, at the beginning of next year, they’ll have “increased pay for production team members by 14% over the last year, including a raise received earlier in 2023.” The company added their wage progression timeline is a relatively short 30 months and they provide 25 vacation days to employees with 15 years of service.

Hyundai Motor North America CEO José Muñoz said, “Hyundai continuously strives to maintain competitive wage and benefits commensurate to industry peers.” He added employees in Alabama have “gone above and beyond the call of duty this year, preparing for the all-new Hyundai Santa Fe, and building the first electric vehicle in our facility, the Genesis Electrified GV70.” The executive also said “we have the best team members in the industry and we are compensating them accordingly.”

While Hyundai didn’t delve into specifics, the Associated Press talked to a professor of collective bargaining who suggested the automaker likely pays around $25 per hour. With the increase, that would bump wages to approximately $31.25 per hour, although the professor noted union employees typically have better retirement and healthcare plans.

 Hyundai Will Boost Worker Pay 25% By 2028 After UAW’s Record Deal With Detroit Three