Wage and Benefits Survey

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About the Survey

Autos Drive America commissioned a first-of-its-kind survey of international automakers’ workplace operations in the United States. Produced by Ernst & Young LLC, the study surveyed 20 production facilities in nine1 states to gather data on employee wages and compensation, benefits, working conditions, and diversity. The results were both illuminating—and inspiring.

 

The Production Line Worker Compensation Survey2 confirms what Autos Drive America has always known – international automakers offer rewarding careers to their 90,0003 U.S. manufacturing workers. They provide a direct path to the middle class for Americans early in their careers. Moreover, the compensation provided by international automakers is in-line-with or leading overall industry wages, benefits, and safety standards. The bottom line is that international automakers are making more than just cars in the U.S. – they have been driving career opportunities, investing in American workers, and strengthening communities across the country for 60 years.

The survey found that throughout the United States, international automakers:

  • Pay competitive wages that are comparable to, and even exceed, industry counterparts, including Detroit-based automakers and other American electric vehicle manufacturers.
  • Provide career opportunities, comprehensive benefits, job stability, and tenure that are critical to building the middle class in their communities.
  • Hire workforces that are more racially diverse than the states where facilities are located, particularly in African American and multiracial demographics.
  • Maintain consistently good working conditions and cover nearly 90% of the cost of a full suite of benefits, such as health, dental, vision, life, and disability insurance.
  • Offer onsite benefits and amenities like medical care, gyms, worker education, and training facilities.

Survey Key Takeaways - International Automakers:

International automakers drive competitive pay and professional advancement opportunities for American auto workers

Wages at international automakers’ facilities align with auto and manufacturing industry averages—and are often higher. Wages far exceed national and state minimums, allowing international automakers’ 90,000 manufacturing employees to support themselves and their families and earn middle-class wages early and throughout their careers.

International automakers offer higher wages for starting positions than industry counterparts—$19.02 compared to between $18.504 and $17.51.Average production worker wages ($24.70) are higher than the industry average, too ($24.53).

Their employees achieve top-out wage rates in an average of six years, allowing them to spend much of their career earning higher wages ($28.01 on average). Industry counterparts also offer relatively fast employee advancement, with an average of 8-9 years6 to reach top-out wage rates.

86% of international automaker employees are direct hires, with many temporary workers offered full-time employment in less than a year. The wages they earn provide for quality standards of living in the communities where these facilities operate.

Facilities also offered a variety of bonus types, including attendance, profit sharing, and performance.

International automakers prioritize the well-being of their employees

Over the last 60 years, international automakers have invested over $100 billion in their U.S. operations. Today, they operate over 500 facilities nationwide, including manufacturing, R&D, education centers, finance centers, and sales offices. This study confirmed that they not only invest in their U.S. production, but also in their workers’ well-being, providing comprehensive benefits that encourage health and wellness, financial security, time off, and educational and professional development.

All facilities surveyed provide health, dental, vision, life, and disability insurance, and cover an average of 90% of health care premiums.

95% of facilities provide 401k account matching.

International automakers offer an average of 25 days of paid time off on top of paid holidays and other leave benefits, including fully paid parental leave.

All facilities provide workers with a vehicle lease, purchase, or discount program.

95% of facilities provide annual educational assistance to employees ranging from $4,000 to $7,500.

The international automaker workforce is diverse

International automakers’ production facilities hire a more racially diverse workforce than the states in which they are located. And because they provide good pay and benefits across the country, these facilities offer a secure career path to the middle class, particularly within minority communities. The economic benefits international automakers provide positively impact their manufacturing workers, their communities, and the 2.3 million direct and indirect employment opportunities generated by their U.S. operations.

34% of workers identify as African American, compared to 18% for the general population of the nine7 states.

Facility workers were also more likely to identify as two or more races (9%) than in the broader nine-state group (2%).

International automakers are dedicated to workplace protections and the needs of employees, including income stability, personal safety, and professional growth

Employees with international automakers enjoy long employment tenure, job security, and on-site amenities. Moreover, these facilities maintain the highest industry safety conditions.

Team leads have an average tenure of 118 months (nearly 10 years) followed by skilled trade workers, with approximately 104 months (nearly 9 years), and production workers at 88 months (over 7 years).8

Zero workforce reductions were reported at surveyed facilities during the COVID-19 pandemic compared to the 360,000 reported automotive manufacturing job losses reported in 2020.9

Injury rates for workers at surveyed facilities were low, similar to industry counterparts.

Facilities provide a range of on-site amenities for production line workers. All facilities provide an on-site cafeteria and 95% of facilities offer on-site medical care and an on-site training facility. 80% of facilities have an on-site gym.


Conclusion

This report affirms that international automakers are not only a vital contributor to the U.S. economy, but they are also a vital contributor to individual households by providing middle-class manufacturing careers across the country.

 

International automakers support 90,000 manufacturing careers, while generating or supporting an additional 2.3 million U.S. jobs and counting. They are integral to the economic success of their communities by providing career opportunities. Over the past 60 years, international automakers have invested over $100 billion into the U.S. and they continue to invest in their workers and communities, knowing that when manufacturing operations succeed, the communities around them succeed. This report confirms that international automakers are driving wages and benefits forward for American workers and providing thousands of quality career opportunities across the country.

Cite this Source

Ernst and Young (2022), Autos Drive America Production Line Worker Compensation Survey, Autos Drive America, Washington, D.C.

https://www.autosdriveamerica.org/wage-and-benefits

References

1 Alabama, Georgia, Indiana, Kentucky, Mississippi, Ohio, South Carolina, Tennessee, and Texas.

2 Source: Autos Drive America Production Line Worker Compensation Survey, prepared by Ernst & Young LLC, based on 2021 wage data.

3 Source: Autos Drive America, “2022 Economic Impact Report,” page 14.

Source: Tesla Production Associate job postings. https://www.tesla.com/careers/search/job/production-associate-gigafactory-nevada-118466  

Source: 2019 United Auto Workers (UAW) contracts with Ford Motor Company (Ford), General Motors Company (GM), and Stellantis N.V., starting wage rate accounting for the 3% wage increase effective September 14, 2020. See https://uaw.org/uaw-auto-bargaining/  (specific page references for each contract, Ford, p. 342; GM, p. 244; Stellantis, MOU M-13.) This figure does not include the cost of membership dues, which equates to 2 or 2.5 hours of straight time pay monthly. See https://uaw.org/dues-faq/

5 Source: 2019 United Auto Workers (UAW) contracts with Ford Motor Company (Ford), General Motors Company (GM), and Stellantis N.V., starting wage rate accounting for the 3% wage increase effective September 14, 2020. See https://uaw.org/uaw-auto-bargaining/  (specific page references for each contract, Ford, p. 342; GM, p. 244; Stellantis, MOU M-13.) This figure does not include the cost of membership dues, which equates to 2 or 2.5 hours of straight time pay monthly. See https://uaw.org/dues-faq/

7 Alabama, Georgia, Indiana, Kentucky, Mississippi, Ohio, South Carolina, Tennessee, and Texas.

8 For context, the average age of the surveyed facilities is approximately 20 years.

9 Ryan Ansell and John P. Mullins, "COVID-19 ends longest employment recovery and expansion in CES history, causing unprecedented job losses in 2020," Monthly Labor Review, U.S. Bureau of Labor Statistics, June 2021.