Hot Under the Collar

Regina’s Lyle Boston is another tech who took the time to express himself about the state of the business today, and he pulled no punches. Thanks for the feedback Lyle.

Jim Anderton, Editor

Jim:

I have worked in the auto repair industry for 29 years. In the early years of my career all I needed was a grade 10 education to jump start my career. We were referred to as mechanics because of the simplicity of the automobile, now that is not the case due to the complexity of the automobile. Our wages reflected the simplicity of our trade decades ago and the willingness of mechanics to step over each other to prove to our bosses that who is the better mechanic, and owners always used the threat that we can be replaced, this only proved to the car manufacture, car dealer, franchise owner and independent shop owner that they will always fully control what they wanted to pay a mechanic, there was no unity or willingness to unite. That was what I called divide and conquer, notice the assembly line worker doesn’t have that problem.

Now we are in the 21st century and the automobile is very complex and riddled with electronics and were are still referred to as mechanics not technicians, guess what, we are still being paid as mechanics and we only have ourselves to blame. We haven’t changed a single thing from decades ago. We are still willing to be divided and we will have to live with the poor wages the rest of our careers, if we stay in this trade. I don’t like unions, but they have their good and bad points. You said that there are 30,000 + shops and that would be a momentous task. How many government unions workers are in this country, not to mention city and other union workers. Do they have poor wages and no retirement packages?. We could unite by starting with the dealership technicians; how difficult would it be for dealers to sell cars when there are no technicians to do PDI’s or warranty repairs? They can’t farm warranty repairs to independent shops, you can expect the manufactures to step in and squash a united front. Then on to the franchise owners and independent shops, it’s kind of hard to do business with no technicians to repair vehicles city wide. The next step is another city, province and finally nation wide. So tell me how other unions did it nation wide, and we can’t. Don’t get me wrong that I’m pushing for a union but that may be the only option we have to unite and stop our whining about poor wages and do something about it. We don’t need other unions telling us what to do, we can form our own united front.

One thing that bothers me is how technicians complain in writing and sign off anonymously. They have proven my point that they fell threatened about losing their job and will always be defeated to earn poor wages. Stand up and be counted if you are willing to change things for the better; that is how unity starts.

Lyle Boston, Regina

Jim Bell wrote via the Internet to comment on my Rant in the November issue:

Hi Jim

I enjoy reading yours and many other automotive magazines, but if you are going to make comments like, “This shop owner clearly has no idea how to manage his operation” You clearly have little understanding of the industry, the number you should be looking at is the affective door rate to technician rate which runs between $10 to $20 below the posted rate.

I started on the bench in 1959 and run my own consulting company my biggest concern is the total lack of social recognition of a skilled technician if we could improve that then the money would come.

Jim Bell FIMI via www.autoserviceworld.com

Jim Anderton replies: Jim, the comment about the shop owner having no idea how to run his operation is talking about the shops that set their door rates by what they believe is their market. If the operator gives up on training, can’t service modern vehicles and ends up a glorified quick lube, there will never be enough money to pay techs properly. If you’re thinking in terms of a ratio of tech wages to door rate, then you’re way ahead of the operators I’m talking about, who confuse cash flow with profitability. Thanks for your comment!

Well-known Southern Ontario entrepreneur Adrian Gordon adds a useful addendum to Editor Jim Anderton’s story about buying versus leasing in the November SSGM Tool and Equipment Update:

Good Morning,

Tremendous article you wrote on this subject, well done and timely.

May I submit something that should have been noted, that being if the lessee exercises the buy out option per CRA they must in essence {legally} restate their returns for the period of the lease. This obviously is a cost {depreciation calculations & restatements of profit} which CRA can take a dim view of as there would be back taxes owing. What we suggest to our clients is to treat as if purchased for accounting purposes so that:

A) If they buy out there are no tax ramifications or,

B) If they don’t buy they can claim back taxes for the period.

Jim, I mention this not to denigrate your superb article but due to a concern that there is widespread misconception that leasing is best because they can write it all off. This misconception is not only fostered by many equipment salespeople but small accountants.

Keep up the great work!

Best regards,

Adrian Gordon

President & C.E.O.

GORWOOD AUTOMOTIVE

Woodstock, Ontario

Via E-mail

Jim Anderton replies:Adrian, thanks for both your praise and your clarification regarding the tax implications of leasing. This is another example of why you need to buy equipment from people that know the real costs involved. Price isn’t everything.