Nissan announced it will increase salaries for its Mississippi and Tennessee workers.
Nissan has informed its employees it will increase salaries at the Canton, Mississippi and Smyrna, Tennessee plants, as well as the Decherd, Tennessee engine plant beginning with October. The automaker announced that pay will increase by 55 cents per hour for production workers and 65 cents per hour for the maintenance technicians. Maintenance and production employees make around $2 an hour, which means this would be an increase of around 2% over the average hourly wage at the Canton And Smyrna plants.
The pay increase comes as the UAW tries to unionize employees at the Smyrna and Canton facilities, with the union drawing attention on the pay gap between the Tennessee and Mississippi plants. The automaker said that salaries for its Mississippi employees are lower because wages in the state are in general lower compared with other states.
“Obviously, that means more stability and security for all of our employees and an even bigger economic impact on the state of Mississippi,” Dan Bednarzyk, the head of Nissan’s Mississippi operations, told members of the Mississippi Economic Council during a Thursday meeting.
Nissan has 5,200 workers in Canton, around 6,000 in Smyrna and 1,400 in Decherd. Over the past two years the automaker has increased hiring as sales ramped up. Currently the company tries to transfer production from Japan to the US, in an attempt to reach 10% of the US market.