Troubleshooter: Will flat rates kill our wallets?

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Like many other retail goods and services sectors, the COVID-19 pandemic has affected the auto repair industry. Yes, as transportation services were declared essential and remained open, few repair shops had to cut back or close their doors. But in the early stages of various lock-downs, a substantial decrease in the number of kilometres travelled by commuters (who only had to fight the traffic between the kitchen and home office) had an understandable dampening effect on repair volume. Then supply chain and manufacturing problems hit home, which made getting required parts a nightmare. And of course technicians had to listen to neighbours and friends gloat about the ease of working from home and how they didn’t miss commuting. All of this and the drastic decrease in younger people deciding to take up a skilled trade, along with those leaving early, have led to a perfect recipe for increasing automotive repair and maintenance costs.

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But why wouldn’t anyone want a job that pays between $25 and $35 per hour? Working inside with all the equipment needed to ensure you never strain anything but your noggin? The simple answer for many is flat rate pay. Flat rate or task-based pay uses an automaker or industry-accepted time-guide to calculate labour charges for customers. For example, replacing the front brake pads and rotors on a simple front-wheel drive compact might be rated at 1.6 units (shops hate using the word ‘hours’). But an experienced tech using the right tools can usually complete the job in just under an hour. Add things up, and an efficient wrench-turner might take home 12 or more ‘hours’ on an 8 hour shift.

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Troubleshooter: Will flat rates kill our wallets? Back to video

At authorized retailer dealerships, the big concern for techs are warranty times, which often barely cover the actual time required and sometimes don’t even come close to making that mark. And of course in those shops, the most experienced and best techs tend to get the worst (paying) jobs, making them easy pickings for private garage recruiters.

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The easy answer is one that many shops (dealership and independents) have already turned to: scrap the flat-rate system and pay techs straight clock time. Some managers resist this move, believing flat-rate systems automatically produce incentives to be efficient. But every other type of services supplier knows that good HR management can keep their business profitable and employees retained.

The qualified tech shortage is real and doesn’t show any signs of improvement. So, what’s a consumer in need to do? First, if you’ve already got a good relationship with a service provider that’s proven to be reliable, affordable, and able to look after your motoring interests, keep them! If you’re on the hunt for such a unicorn, ask friends, family and co-workers for their recommendations. If you’re trying out a new shop, casually ask the average length of tenure for their techs. If they have a set of long-term employees, they’re likely a winner. And if you’ve got a student at home that enjoys tinkering with cars, encourage them to consider working as a technician. Having a good one in the family can pay major dividends.