Nissan Boosts Pay at U.S. Plants

Nissan Motor Co. says it will increase hourly wages in October by 55 cents-65 cents, or about 2%, at three U.S. factories and resume paying an annual "recognition" bonus in June, the Associated Press reports.

The news service notes this will be the first raise for those employees since 2006 and the first bonus since before the recession. The company says the actions reflect improving U.S. auto sales.

The pay hikes come as the United Auto Workers union steps up its efforts to organize workers at Nissan's assembly plant in Canton, Miss., as well as other U.S. facilities owned by foreign carmakers.

The wage increases will affect Nissan employees in Canton, at an assembly plant in Smyrna, Tenn., and an engine factory in Decherd, Tenn. Those facilities employ a combined 12,600 workers. But an unspecified number of them are contractors who will receive the bonus but not higher hourly compensation.

Smyrna technicians and production workers earn an average of $26.50 and $30.50 per hour, respectively. The company pays employees in Canton $2 per hour less than their Tennessee counterparts.