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I work at a Chrysler Dealership as an hourly lube tech, but every other guy in the shop is flat rate and I refuse to work flat rate because I’ve been there almost 3 years and I’ve seen what the flat rate system does to both the techs and the work they put out.
Here are some reasons I’ve found that flat rate is bad:
1. Enables favoritism and feeding techs
2. Enables service writers and managers to starve out techs they either don’t like or who don’t go along with the politics of the shop
3.Creates the concept of gravy jobs that pay great and are easy (brakes, fluid flushes, etc) and ** jobs that pay next to nothing but take half the day (pretty much anything warranty, water and air leaks, etc.).
4. Encourages techs to rush through jobs and cut corners to get things done faster, which normally results in butchered car (i.e. cutting or bending a bracket out of the way instead of unbolting it)
5. Selling work vehicles don’t need (calling brake pads at 5mm because “the shop is slow”. I remember one of the techs telling me a story about a former service manager telling him “when the shop is really dead in the winter, just call the rear main seal on a car under warranty and just spray it off with brake clean and don’t do anything else”)
6. Discourages techs from helping each other (I don’t get paid to help you)
7. Lets dealerships unload their losses and slow times on the tech (Oh business is slow, well you’re just not upselling enough on the cars that do come in, or Oh you didn’t diag. that car right the first time, well now you get to fix it for free)
8. Creates a cutthroat work environment (i.e. the shop favorite is getting all the gravy work and the rest of the guys get stuck with warranty jobs)
9. Undermines the value of the work techs do and makes customers think everything can be done fast and done correctly (which it can’t in most cases, you can be efficient at what you do, but if your just slamming through jobs you’re obviously cutting corners somewhere or not actually doing the work.)
10. If you lose your ass on a job or have a pay with low hours you are simply told you need to hustle more.
11. If you ask for a raise you are told ” you want a raise, turn more hours” and it becomes about quantity over quality.
Most arguments I’ve heard against flat rate are “Well if you pay a guy by the hour he’ll just goof around and play on his phone all day and not do anything” My answer to that is talk to the employee and if things don’t change, fire them. But the current solution to getting rid of a bad tech (which could just mean a tech who’s just not fast enough) is to”starve them out” and make them quit, which employers like because then they don’t have to pay unemployment.
I think flat rate was just a way for companies to not pay techs the actual time it takes to do something and just slap a number on every job to where “this can be done in this amount of time, every time, no exceptions” and that just doesn’t work in the real world. Plus when they calculate the labor times they use brand new vehicles that haven’t had a change to rust and experience the abuse people put their cars through.
In order for this industry to improve flat rate need to die and either hourly pay or salary plus commission need to take its place. I think that the only way you can make a good living off of flat rate is if you are feed gravy work, are not honest, or are in a shop that is literally always busy (which doesn’t exist, there are always slow days and weeks. Winter anyone?) I have seen though in shops with both flat rate and hourly guys that when it’s slow they’ll have the hourly guy running around and doing whatever (LOFs, state inspections, install mudflaps, etc.) while there’s two flat rate guys that have been standing around half the afternoon with no work.
So honestly I think if they went to straight hourly they would probably expect even more work from you than if you’re flat rate, because if they see you standing around and your being paid by the hour, you’ll probably either get sent home or be given some shit job to do (take out trash, clean, etc.) Just another thought that crossed my mind But the whole point of this long rant is that for the industry to improve the flat rate system needs to go. It’s pushing people away from becoming techs, it’s driving current techs out of the field, and it’s really doing a disservice to the automotive business as a whole. This whole idea of “everything needs to be done fast” needs to die along with the flat rate system. A tech’s main focus going into a repair should be “How can I fix this car to the best of my ability” not “How can I rush through this job and beat the labor time”
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