Flat Rate Commission for most mechanical auto techs is like working in a whore house.
You get screwed all day long
Then screwed on your pay
Its only gotten worse and worse over the decades.
The hours charged by flat-rate schedules work in favor of the consumer.
Not a terribly bad idea , in all fairness. In most cases.
In general , after you have performed that operation 4-5-10 times , you can match or maybe even beat the time allotment.
The first few times , you lose time.
Not so bad if you work on the same type cars day in and day out.
You get the handle on it - in most cases.
That is the design behind flat-rate manuals.
A multi-make dealer , or independent shop , you lose on about everything you touch.
Over the years as labor rate goes up , they reduce the techs percentage.
It keeps them at about the same annual salary as 20-30 years ago.
Even though the labor rate has doubled and tripled since then.
That is the whole problem. Greed of the Pimps
Body Shop business is very similar - but not as totally extreme overall .
Here is a typical scenario :
Go to Service Director desk for next job assignment.
By the time he leisurely has your input assigned and logged on the job, you go search/find the car outside and get it inside to your bay , about the 15 minute mark.
It's a 0.8 hour job assignment.
You go to the parts counter and they leisurely fill your request and make the necessary input into system, and hand you the part(s). Return to your bay,
about 25 minute mark.
The repair takes an hour.
1 hr 25 minute mark
Return car outside, return keys to Director and he leisurely inputs your 0.8 into system and hand writes the data onto your flag sheet.
1 hour 35 minute mark
You just got paid for 48 minutes of labor.
It only took you 95 minutes to earn it.
The company charged $96 labor @ $120 Hour
The tech draws $32 before taxes
Next job is 0.6 to replace exterior rearview mirror
It should have went to the Body Shop , but they are covered up and it would take a week to get it back out to customer. So you get the job instead.
Another 20-25 minute mark later - the car is in your bay and you are at Parts Counter being handed the box (mirror)
oops - it came in the wrong color.
Mirror to Body Shop - Car back outside - Keys back to Director.
35 minute mark = 0 paid labor accomplished
Its going to pay 36 minutes - after you get notified by Body Shop its ready.
{1 or 2 days later}
Get keys again, grab car and go to body shop, get mirror, drive to bay,
remove door panel and install mirror. 60 minutes + previous 35 minutes
Return car outside , keys back to director, flagged time.
Another 10 minutes.
105 minutes total input
36 minutes paid {0.6}
Next job is road test for funny noise at right front wheel -
you can't duplicate noise even after 20 minutes driving
the Beat Goes On
I've never employed as a mechanical tech at a dealership
But know/knew many who did while i was employed at dealership body shops.
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