"Keep in mind as service manager I am management and I should be against unionization, but I am not against it because I see what is happening to technicians and no one is stopping it. When you are an independent business, as dealers are, you don’t want anyone to tell you how to operate it, so from a dealer’s perspective I can see that unionization is the last thing you want. On the other hand, the technicians have no representation and no voice and in most dealerships are expendable. Ford wants the techs to be fully certified and trained and held up on a pedestal, yet Ford turns right around and doesn’t pay them for the work that they perform. Ford says pay is a dealership issue. It is to some extent, but when Ford dictates the times for the repairs how does this become a dealership issue?How will a union change the SLTS situation?With SLTS, if Ford is going to continue forcing those times, nothing is going to change as far as helping the technicians. Every dealership is going to respond differently. It then would be up to each dealership group to bargain for what it wants. Many techs don’t even have insurance. Techs would elect their own steward and own pay scale and will have to bargain for what they want. A union with technicians won’t affect Ford at all, but if you get enough techs unionized and get enough of this going on, that may force dealers to stand up and deal with Ford to straighten this out. If they don’t, dealers will be the ones taking the hit because a lot of them will start paying techs some benefits and raising pay scales, so their cost of doing business will be greater. The first thing a dealer does, if Ford throws them a mickey, is look at their books to calculate what the time decrease means to the dealership per year and then raise the door rate. They cover their loss but don’t give the technicians a pay increase. Without a union, the techs in turn have no way to control their own loss. Just about everything else has been tried – use this system, turn in these dealer requests for reviews and this and that – but none of this stuff works. The PTS – Professional Technicians Society – is nothing but show ponies. Ford handpicks the people it wants to show up at these meetings. Ford says it takes what it has been given under advisement, but it never seems to move on any of these suggestions or concerns. Ford’s response is the issues are a dealership issue or something they won’t talk about. Why aren’t dealer principals more concerned?They just don’t have the losses the tech does; I’m not sure dealers are going to pay any attention at all to any of this until all the master techs and techs are gone. Regardless of what Ford says, techs are leaving the business…as we speak. Ford is holding us accountable to Toyota standards. Our current warranty repair rate is $600 per unit; Toyota is $300. Ford is holding dealers accountable for that and putting dealers on warranty audits, but these warranty costs have nothing to do with repairs – it has to do with the quality of the vehicles. So then Ford says the quality of its vehicles is up and warranty repairs are down 20 percent, that’s not the entire story. Any dealer can go to his financial statements that show repairs, Warranty Customer Pay Internal. Go back to ‘99 and come forward and pick any months you want and what dealers will see is that while Ford is stating warranty repairs are down the dealer’s warranty RO per month he is writing is the same number or more this month than he was the same month three years ago. The only declining figure the dealer will find is the amount paid per repair order. Ford is saying repairs are down because quality is better; at the dealership level we’re writing the same or more ROs telling us quality is at least the same if not worse; the only thing different is we have lost 30-40 percent of what Ford would have paid us four years ago.There are roughly 40,000 Ford technicians nationwide; the biggest percentage of technicians leaving the business is master techs. Ford says it is the unskilled techs at the bottom that are leaving; once again, it’s exactly the opposite because every year these master technicians are seeing their pay decline. So far this year alone 300 to 500 master techs have left the business to open their own businesses, go to work for marinas or towns, you name it… anything to get away from Ford.The horses are already out of the barn. The techs are saying “My dealer charges $100 and he pays me $20. I’m losing X on warranty.” They’re mad about it. The dealer signed a franchise agreement; he is bound to work for whatever Ford pays him. The technicians have not signed an agreement like that. When Ford starts backing down repair times, it costs the tech money when the job can’t be done in the time given. If Ford says the job should take an hour and it takes two, the technician just lost an hour of his day, which is whatever his rate is.A few dealers are vocal about this, but only a handful of them are willing to do something. Ford is doing what it wants and nobody is trying to stop them. The guys at the bottom, who happen to be the technicians, have decided they have had enough of this and if takes a union, it takes a union. The dealers aren’t protecting their technicians.Doesn’t Ford have a valid point that with new diagnostic tools repair times should decrease?That’s exactly what they say. They did 13 specific time studies at the request of the dealership technicians, what we called the Hot 13; out of 13 operations that Ford had to study because of the heat we put on them, eight of the 13 operations increased in time. The newest thing they’ve done is what they call “streamlined operations.” It works like this. Suppose a car comes in with a check engine light on. You retrieve a code 401 out of the computer. For this operation now, Ford has thrown everything out the window, diagnostic times and all, and put the repair details on a bulletin. This bulletin says if you retrieve this code, 401, you replace the DPFE, which controls the EGR flow sensor. That is OK if they want to do it that way. But they dropped the time for the job to .3 from what it was, which was .8. They tell us to change that module in .3, which tells us to take all of our training and diagnostic manuals and leave them in our tool boxes and don’t look at it; just put this part on. That is fine and dandy, but I had a tech come to me and say this particular car with this code was now in for the third time with the same problem; should he put in another sensor or should he repair the broken vacuum line.Which was the real cause of the problem.Exactly. The operation would have been 12650D, which would be to test the system. That would have paid .2; DX1 which was .1 to reset the sensor; plus .2 to replace the part. Now Ford is only paying .3 to computer test and shut the check engine light off; Ford is not now paying technicians to put on the part. I hear from the “inside” there are a lot more of these “streamlined operations” coming. So we have big trouble brewing and more coming and it’s not getting any better. Is this only a Ford problem?The thing that is scary is a Ford memo states that all American manufacturers are looking at how each other is doing business…and they’re modeling off Ford. The DaimlerChrysler techs are in the first phase of where we were in ‘99 and the same thing is happening to them and they are asking about unionization. Curiously, General Motors doesn’t seem to be affected at this time. If Ford would listen and work with us and pay us for what we do, which they should…this issue would be over. We don’t work for Ford but Ford dictates what it pays us for repairs, yet they won’t pay us for diagnostic time and road test time, even though its own materials tells us to do these things. Here’s another example: Ford used to pay us .1 per recall claim to cover clerical time. They took that away. Based on Ford’s average number of recalls per year that cut amounted to an $80 million savings for Ford. The dealers were livid about this for about two days. In my dealership, we figured that cut amounted to $8,000 a year, which is not a lot of money but nothing to sneeze at either. Ford also decided to cut all operations on prep by .1. At Ford’s current rate of vehicle production that cut in tech time saved them $27 million a year. Ford says it’s the service advisor’s responsibility to test drive vehicles. But if the service advisor is not a master certified technician he’s not qualified, by Ford’s own standards, to make that diagnosis. That’s goofy. If every service advisor was a master certified technician that policy would be fine, but I would suggest that the service advisor isn’t getting paid for that diagnosis either. Technicians don’t know what Ford wants; all we know is Ford doesn’t want to pay us for what we do, at any level of repair.Look at the numbers: For the first quarter of 2003, Ford boasted earnings of $896 million. Ford’s second quarter earnings dropped to $417 million. Even with all the cuts Ford made at the division level Ford was already in a decline because it’s running out of dealer money which it was using to show its profit. If I can take away six minutes of time on every new car that is prepped, who is going to miss that; but nationwide that reduction is $30 million right to the bottom line.What do dealers need to know?The unions will pull this off. The union is going to get Ford out of your service department before it’s too late. While a lot of dealers are sort of in the loop about this, most are willing to sit back and let their techs do the fighting for them, which keeps them out of harm’s way with Ford. Unfortunately, their indifference may lead to something they really don’t want – unionized technicians.If you wish to discuss this article with other dealers, or with the author, please go to the “Discussion Forums” at
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