By on August 4, 2017

model car mechanic

Mechanics at roughly 130 new car dealerships in Chicago went on strike Tuesday morning. According to the Automobile Mechanics’ Union Local 701, nearly 2,000 grease monkeys threw in the towel before also tossing a wrench into dealer maintenance schedules — leaving customers to fend for themselves.

On the first day of the strike, Mark Bilek, senior director of communications for the Chicago Automobile Trade Association, issued a statement that most affected dealerships would remain open with partially functional service centers. “They may not be performing complex repairs, but oil changes, stuff like that, it’s business as usual,” said Bilek in a statement.

However, the union stated that wouldn’t last for long if demands were not met.  It has been bargaining with the New Car Dealer Committee since June, citing uncompensated time, unacceptable schedules, unsatisfactory pay, and no opportunities for career progression as its chief complaints. Deadlocked since negotiations began, the union decided to halt all work at the beginning of August — despite Bilek’s assurance that customers could still get their oil changed or tires rotated. 

Sam Cicinelli, directing business representative for Local 701, issued a counter statement to the Chicago Tribune specifying that routine services were off-the-table on Tuesday afternoon. “They’re not doing that,” he explained. “There’s nobody that’s in there to do oil changes or anything of the sort.”

The situation did not improved as the week progressed. David Sloan, president of the Chicago Automobile Trade Association, specified no moves had been made by dealerships to speed up negotiations and union members are actively picketing outside most of the affected stores.

“Dealerships are trying their best to keep things going,” Sloan told Automotive News. “They’re rescheduling some bigger jobs but trying to keep smaller jobs continued. They’re making the best of a bad situation.”

Mechanics are hoping for an assurance of 40 hours per week and pay less dependent upon productivity, claiming there isn’t always a vehicle waiting for them in the service bay. The union calls the pay structure “draconian” and accuses it of “prohibiting [its] ability to attract young, aspiring mechanics to enter the auto repair profession.”

So far, dealers have offered a 5 percent annual pay increase over the next three years to bolster incentive-based pay. Sloan said workers “overwhelmingly” rejected the proposal.

Presently, neither side has expressed any idea as to when the strike might conclude.

The gripe from workers is that, once again, the majority of the proposed increase is dependent upon the work that is done or currently available, which doesn’t provide them with a predictable income.

Brian Ilic, a mechanic on strike with Local 701, said dealer management made their offer to the union on July 31st, the same day the previous contract expired. “I feel they thought if we were given a last minute decision we would take the subpar offer and not strike,” he said. “None of the industry problems we asked to address were even addressed. Most were what seems like just rejected with total disregard,” Ilic continued. “I think they felt if they threw money at it, we would be happy.”

The consensus between Ilic and the rest of the striking mechanics seems to be that the Automobile Trade Association has ignored their requests for a 40-hour week and focused on incentive-based pay increases that would be difficult to take advantage of, especially in an era where cars need less routine maintenance and dealers continue keeping hours low. Extended warranties on vehicles that need less work overall means more of the wrenching done at dealerships is paid at automaker rates, rather than higher customer-pay rates. “This makes the incentive rate harder to achieve,” Ilic concluded.

However, Sloan says the incentive-based payment system exists for a reason. “It’s in the best interest of the dealers to reward their most productive technicians,” Sloan said. “They have to keep their most productive technicians busy and keep their service department running efficiently.”

Well, how efficiently are they running right now?

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56 Comments on “Hope You’re Handy: Chicago Mechanics Are Still on Strike...”


  • avatar

    Image: Lego USPS Worker Modifies Lotus Esprit V8

  • avatar
    I_like_stuff

    AWESOME!!
    – Indy mechanics in the greater Chicago area

  • avatar
    Oberkanone

    What are they making per hour?
    $100 per hour plus labor rate at Chicagoland new car dealerships. They are making over $100K per year if they get 1/2 of that. The most skilled and most productive I’d say deserve that or more. I would say the majority do not. Supply and demand will determine the outcome of the strike.

    • 0 avatar
      gtemnykh

      “They are making over $100K per year if they get 1/2 of that.”

      They don’t get anywhere close to half of what the dealer charges as their hourly rate, sad to say.

      Most guys worth their salt start their own shops once they can afford to take the plunge, and they end up making much better money, closer to what you are hypothesizing oftentimes. Staying at the dealer is a crappy gig IMO. Hard on the body, the system encourages short cuts and BS work for both mechanics and service writers that ends up screwing over customers. I’d much rather work for a competent indie than the average new car dealership service department. Well, maybe the LR and high end brands aren’t so bad. I think the only draw for dealerships is the opportunity to get some benefits and maybe slightly more stability.

    • 0 avatar
      MBella

      Techs today top out at around $32 per hour flat rate. These are the absolute top, senior techs, usually shop foreman. The average competent experienced tech earns less than $25. The dealership charges at least $109 per hour, but pay the techs a fraction of that. On top of that, dealers are focusing on customer satisfaction surveys and bonuses that result from those. Of course this now results in the dealer wanting techs to go do simple things for free. I would like to see the average person commenting here punch off the clock to go replace a headlight bulb on a car. These type of strikes are just going to continue and get worse unless dealers make some changes.

      • 0 avatar
        28-Cars-Later

        Earlier in life, my mechanic was a shop foreman at a Volvo dealer. He explained the shop rate was divided in three, 1/3rd the dealer, 1/3 the employee, and 1/3 for insurance. I believe the insurance was liability insurance I supposed on the employees. If you factor in the high costs of employment, 25% being the pay rate plus benefits/social stealing, it is probably a 1/3rd. I have too much of a headache to try to think about economics, but I do know if legislation were changes to reduce the amount of litigation in general society, it would be a good thing and probably reduce employment costs.

      • 0 avatar

        Don’t forget the favoritism of service writers. Some techs get the gravy others get the sh&*. I didn’t work as a tech long before I figured out making big bucks is a pain in the as$. I got out went into another trade then left for desk jobs. A lot of that pays up to is pure marketing hype. As mentioned below most of the guys will pull somewhere from 40-50k take home. Which isn’t bad but it also hasn’t gone up really in over a decade.

        Now if you make nice with manager and service writer and are quick you can make some decent change but most won’t. Back when I worked at the dealer there was a recall on cruise control. If you conveniently only installed 3 of the 4 retaining bolts it required basically no removal of other parts for access. where as if you did it by the book you had to take a bunch of intake plumbing etc apart. So it paid like 1.5 hr but if you cheated you could do it it in .5-.7. Now I got one of those, where as a friend of the manager got literally dozens. Same thing with the guy over at the Chrysler point who could swap a minivan tranny in just over half billable.

        Now I have occasionally met a tech who worked somewhere that really truly paid well but that’s rare and most were in areas where they had trouble finding techs. (wealthy suburbs that required long commutes etc.)

    • 0 avatar
      White Shadow

      I used to work as a dealership technician (Toyota) about 15 years ago. The top three guys in the shop were making six-figure salaries because they could always easily beat the flat rate times for every job. It wasn’t uncommon for them to book 70-75 hours of pay in a 40-hour week.

      • 0 avatar
        MBella

        The Toyota and Honda stores have it a bit easier, because they focus more on gravy work. They don’t get as much hard diagnostic work, and they sell many extra services. Most other manufacturers have cracked down on “wallet flushes”.

        Also, in 15 years, things have changed drastically. When I started with Mercedes years ago, times were very good, and you had no problem beating them without cutting corners. If you stayed busy, you had no problem with 15 hours in a day. Now it’s becoming very difficult. They also don’t want to listen to your explanation. Their time studies seem to be with the engine removed.

  • avatar
    arach

    I don’t know what to say about this.

    the thing is, mechanics get a killer wage once they get a few years under their belt… Salary.com says an Mechanic III makes up to $66k. I mean I know their hours aren’t ideal, but they get paid better than I do, and I don’t like my hours either.

    Indy shops typically make a fraction of what the franchised dealer mechanics make.

    In short, isn’t this a bunch of people making a really good living- many even over 50k which is darn good pay… complaining that they don’t get better hours and pay incentives not tied to performance?

    I’ve many times regretted not being a mechanic myself. The only thing I don’t like about it is the hours.

    According to indeed, Mechanics median $22.03/hr in Chicago IL. That means half make MORE than that. 46k? Not too shabby. I must be missing something.

    • 0 avatar
      danio3834

      The average pay of these guys is likely higher than 50k, likely in the 65-75K range as most of them are actually getting paid MORE than 40 hours a week because of the flat rate system. When they say they want 40 hours, that’s a 40 hour guarantee, then then get paid for every extra hour they flag after that. Many productive techs can easily flag more than 50 hours worth of work in a 40 hour week.

    • 0 avatar
      S2k Chris

      Dealer on my commute has picketers out front, and the guy next door to me is a Jeep mechanic. I’m not sure what the right answer is, but I don’t think that sort of wage is anything palatable in this area. $46k a year might be okay is some areas, but here it’s not going to cut it.

    • 0 avatar
      mason

      It’s not quite as lucrative a deal when you consider these guys have to provide their own tools. And it’s not like they can just get by with a basic set, time is money necessitating many specialty items to be able to shave time off the job.

    • 0 avatar
      RHD

      “Salary.com says an Mechanic III makes up to $66k.”

      Website salary estimators are notoriously inaccurate. My profession is always way off, either too high or too low.

      “up to 66K” translated to English is “less than 66K”. Before taxes, healthcare premiums, retirement deductions and miscellaneous deductions.
      Working as a mechanic at an automotive dealership should be a profession, not a job. It takes education, experience and expertise, and, apparently, your own set of tools. When working conditions get bad enough to actually go on strike, it’s got to be pretty bad.
      Hopefully one of the mechanics is a member of the B&B, and will offer his insights on the situation.

      • 0 avatar
        MBella

        Very few techs are making a killing anymore. Most manufacturers have killed flat rate times to the point that it is getting difficult to perform certain jobs in the time allotted.

        Then dealers expect techs to perform many tasks for free. Imagine clocking off at your job to go install a headlight bulb where the fender liner needs to be removed.

        Back in the day, times were generous, and techs were earning about 50% of the flat rate. Now a guy earning 20% is one of the better paid techs. In today’s dealerships, many of the experienced techs are leaving to work at independent shops, or like myself are finding ways to get out.

    • 0 avatar

      Depends on the benefits that come with the 46k. I know some of the dealers near me have dumped most of their medical benefits or switched them to the dealer only paying the first 20% of premium.

      You also have to buy your own tools. Some dealers require a hold back if you damage a car etc. The bigger issue most of my friends still doing it for a living have is that 46k figure was almost the same back in 2003 or so. 15 years with little increase is not pleasant.

      • 0 avatar
        MBella

        Many of the techs that were at were already towards the more senior and experienced levels 15 years ago are making less today. During this time dealers are making record profits, and raising shop rates.

        One of the dealers I worked at raised the shop rate from $135 to $145. We thought it would be fair if every tech got a dollar raise, and got laughed at.

    • 0 avatar
      Fordson

      “In short, isn’t this a bunch of people making a really good living- many even over 50k which is darn good pay”

      Um, what? This is 2017…$50k is strictly average.

      Also, comparing working in an environment in which you walk in and everything is provided for you (like I do) and one in which you have to provide $15k-$20k worth of your own tools, is misleading.

  • avatar
    -Nate

    No 40 hour workweek ? bullcrap .

    Making $46K / year and are going to get a 5% raise ? SHADDAP ~ if that’s not good enough you shoulda gotten off your ass and gone to College, not all of us mechanics ever get $46K, I’da been delirious with that and due to my crummy Union I worked EIGHT YEARS sans _ANY_ raise whilst the Dept. of Water & power got 10% raises without asking…

    I was happy enough to be able to pay my bills and raise my Family, we didn’t skip any meals @ $42K .

    Perspective folks .

    -Nate

    • 0 avatar
      caltemus

      “My life was hard so everyone after me should have a hard life too” is what you’re saying. Not that I think they should get their demands, but that’s not sound reasoning for anything.

  • avatar
    danio3834

    I’m sure the local quick lube chains are more than up to the task of absorbing the work, which they will retain.

  • avatar
    Jean-Pierre Sarti

    growing up in the south I am not used to unions so I don’t think I have a good opinion on the dispute but i will say anything that hurts dealers is fine by me. so if business goes to local shops, good, screw you dealers. and by dealers i am really referring to the scumbag owner/managers, i know some good people work there.

  • avatar
    Oberkanone

    https://www.bls.gov/oes/current/oes493023.htm

    $46,540 is the mean in Chicago area.

  • avatar
    stingray65

    Maybe the mechanics should join the public sector unions in Illinois: Six-figure incomes, retire with juicy pension at age 50, free medical, lots of paid holidays, can never be fired – at least until the State declares bankruptcy.

  • avatar
    psychoboy

    The new car industry has its own special carveout in the Fair Labor Standards Act, denying overtime to virtually all “Partsmen, Salesmen, and Mechanics”. When times are good, sure…flat rate techs can flag 50+ hours in a 40 hour week, but as the article notes, when times are bad (economic downturns, better build quality, good weather) a tech can stand around doing nothing for much of the day, which doesn’t pay.

    Add to that dealerships that hire a bunch more techs than they need to keep up with an expectation of work that never appears, and the workload gets spread even thinner.

    In an effort to appeal to customers, dealers are staying open late, opening early, and working weekends. There are a few dealers in my area that are open 24hrs a day 7 days a week, despite blue laws that make it illegal to sell cars on sunday. If the shop is open, it’s gotta have techs, and if nobody is getting work done at 3am on sunday morning, that tech is not getting paid.

    If they were guaranteed 40 hours of pay for being in the building 40 hours a week, then got a small flat rate for the work they actually do (and none of this draw bullshit) then that might solve many of their complaints. otherwise, they’ll continue to stand around playing hacky sack in the shop and telling the advisors to screw off when someone wants one of them to “just come look at something”.

  • avatar
    turbo_awd

    Around here (Silicon Valley) usual Dealer rates are $150/hr. Lucky if you find $125. My independent mechanic charges $75 (maybe went to $80 after 5-7 years?), 9 times out of 10 does a better job than the dealer would, and seems much happier overall. That should tell you something about dealer overhead/markup.

    Note: $60-70k/year is considered borderline “living wage” to live in the valley.

    • 0 avatar
      MBella

      A few years ago, I called some dealers around the country when I was looking for work. In your area they offered $25. That’s absurd for the high cost of living.

    • 0 avatar
      burgersandbeer

      Who are these dealers only charging $150/hr? Who is your independent mechanic?

      BMW dealers are up around $190/hr, though they have surprisingly decent rates for maintenance like oil changes and alignments. I’m not sure how they reconcile those deals with what they pay their techs to perform the service. Might tie in to MBella’s comments about expecting “small stuff” for free.

      I have not had any luck finding an independent mechanic for less than $125/hr.

      Silicon Valley boundaries are vague so this might not count by some definitions, but $70k/year is closer to poverty on much of the SF peninsula.

      http://www.mercurynews.com/2017/04/22/in-costly-bay-area-even-six-figure-salaries-are-considered-low-income/

  • avatar
    ToddAtlasF1

    Unions can poison any well. My techs get salaries in the $65K range in a town where only public employees make more. They don’t need to strike. They’re constantly getting recruited by dealers, and we pay whatever it takes to keep the few who are franchise players. They don’t have to worry about billable hours, or upselling, or customer satisfaction surveys, or anything other than diagnosing and fixing cars right. We have a two week wait for an appointment at our shop, and the only thing keeping the wait that low is the people who can’t afford to wait and have to go somewhere else. If you’re honest with people and fix their cars right, you don’t need to pad their bills. They’ll kill each other to get back in your door. Unions enable people who are awful at their jobs and at life. If that’s what you want, go to a union shop.

    • 0 avatar
      Scoutdude

      Yeah it is easy to do well in the automotive repair trade just by treating people fairly and standing behind your work. It is so rare that like you say you’ll soon have people willing to wait for you to do it right because so few of the other shops do.

    • 0 avatar
      sirwired

      [List of poor working conditions that it would be expected a union could fix as part of a collective bargaining agreement.]

      “Unions suck!”

      • 0 avatar
        ToddAtlasF1

        My shop is air conditioned, fresh food is prepared for lunch on our Traeger smoker or brought in from local restaurants, the facility is kept clean, and vacations and sick time are paid. There’s decent coffee and bottled water provided to all who work or visit. If you’re of any value to the company you work for, they will show it. Joining the mob to shake them down just reveals how little you are.

  • avatar
    rcx141

    I was very surprised to see these picket lines this week Every main dealer seems affected. I’d assumed that the dealers were working as normal and the pickets were just rent-a-crowd types, and not employees, but it seems like I might be wrong on that.

  • avatar
    White Shadow

    Guys, I’ve been out of the car repair game for many years now, but I still have lots of friends turning wrenching in the business. In my area, it’s not difficult for an experienced technician to gross more than $100K/year due to flat rate pay. But these guys WORK for it. My very first day on the job, I grabbed a sandwich from the lunch truck and sat down to eat it. Everyone else was working while they were eating. No lunch break for them…. It was all about booking hours. I’ve honestly never worked as hard in my life as I did turning wrenches. I put in enough time to become ASE Master Certified and then left the business after realizing that all the older guys had bad backs or bad knees from bending over cars all day. And the older guys, for the most part, didn’t want to keep up with the technology because it was advancing too rapidly. They became dinosaurs and couldn’t continue to be high wage earners. I left the business and never looked back, although I still enjoy wrenching on my own cars in my own garage.

    • 0 avatar
      -Nate

      _THIS_ ~ I enjoyed the job but no bennies and knowing all those great old timers who trained me were kicked to the curb by the $tealer the *instant* they got injured or coudn’t keep up with the 20 year olds, made me open my own shop and then eventually get a job with the bennies, I still had to pay for those bennies but I got to use them so no complaints .

      -Nate

  • avatar
    dr_outback

    I work as a Service Advisor for VW/Audi/Porsche. There needs to be a lot more give and take by all four parties. The manufacturer, the dealership, the Technician, and by the customer.

    At least with German brands, the cars are requiring more routine service and when something does go wrong, it takes a lot time to diagnose the problem and make the appropriate repair.

    There’s also the increased connectivity of vehicles and the customer expectation that ANY dealership and their personnel will be happy to spend hour explaining all the technology and solving their technology related issues for an hour with no compensation and regardless of which dealership or car lot they purchased the vehicle from.

  • avatar

    I use a local shop. There is a manager/owner, who does not wrench. He has three full time mechanics, all of whom have been there over 10 years. He has one guy he calls for GM cars. I’ve never had a problem with them…I’m friendly with the owner, he has high expenses, but there is a pride in the work and things are done right. On the other hand, I’ve had some really poor work done at a dealer….bolts inserted with an air wrench, not a torque wrench, and notably, a warranty transmission job where the guy, no doubt under time pressure, forgot the gasket between the transfer case and transmission…leaving me with a driveway full of ATF. After the second attempt I thought it was done, until the day my local shop guy asked me if the truck had been in an accident ? No, why ? You have lot of nuts and bolts missing and I thought a body shop had worked on the car…..

    This shop has also NOT replaced things I thought were broken…instead fixing the real problem, which was cheaper.

    I try not to patronize places that crap on the workers…Wal Mart, my local Acura dealer (a dysfunctional family), our local steak house (kids get first job but don’t get tips there-management does)….

  • avatar
    28-Cars-Later

    Why are dealer mechanics in a union, is this just an Illinois thing?

    • 0 avatar
      MBella

      It’s a response to how poorly they are treated. It’s becoming more common across the country. If dealers want to avoid it, they need to start respecting their employees more.

  • avatar
    Big Al From 'Murica

    So if someone’s replacement airbag shows up but the dealership won’t install it because of this and their Takata goes full claimore what is the book rate for the trial lawyers involved?

  • avatar
    Erikstrawn

    Eighteen years ago I was a technician at a Japanese-brand dealership here in Oklahoma City. The guys in my shop were rabidly anti-union, but every few months the dealership would try to make us accept 3.5 hours on timing belt replacement (4.0 hours) to try and get customers in the door. The same guys who were anti-union would gather together and make sure we were all behind sticking to 4.0 hours. A union by any other name…

    Our top technician was excited when he finally cleared $50K in one year. He was good enough that he went to the manufacturer’s world technician competition in Tokyo and won it. At the time the dealership was charging $75+ a flag hour, and he was making about $25. As a beginning technician I was making $13. Almost all the work coming in the door was warranty, but the top technicians were getting fed what little customer pay work there was. The little customer pay work I got was from the used car lot, but there were several occasions where the used car manager would launder work through a customer’s name to get the manufacturer to buy “goodwill” work (warranty work after the warranty expired). That meant my pay for a job would get cut in half.

    The truth is most dealer technicians are young kids hired out of vo-tech with promises of six-figure paychecks. Most make $25-50K and get out within four years. The experience level compared to an independent shop is tiny. The fortunate thing is they typically only see one brand of car and know the major problems with that one brand.

    • 0 avatar
      bumpy ii

      Yep. The typical progression I’ve seen is: graduate from an auto mechanics program at community college, work at a dealer for 5 years or so, move on to Jiffy Lube or something for another 5-10 years, land a spot at an independent shop and either settle there, or start your own shop after 20-30 years.

      • 0 avatar
        burgersandbeer

        “Progress” from dealer tech to jiffy lube?

      • 0 avatar
        Erikstrawn

        I spent two years as an intern and one year as a tech. We had a bad month at the dealership and the general manager told the other managers to fire some people. I got picked. I decided being a dealer technician was a joke and used my Air Force Reserve connections to get a job with a military contractor. I took a 30% cut in pay for an entry level job, but my stress level immediately plummeted.

      • 0 avatar
        desertsoldier22

        Its even going beyond VO-Tech now, you will need a bachelors degree with an engineering background soon with the advances in these vehicles. The amount of training required, cost of tools and busting off ass just does not warrant the $15 dollars a flat rate hour some of the dealerships in this area are offering. Especially when cars these days take longer to diagnose, dwindling warranty hours and 15,000 mile maintenance cycles are destroying gravy jobs.

        • 0 avatar
          Erikstrawn

          I have an associates degree in automotive technology, specialized in that manufacturer. I also still have my company stock in the dealership chain. I get annual financial reports, and the service department is 50% profit, although that 50% profit is only 10% of the entire dealership take. They can certainly pay the technicians better, and they would get better techs for it, but it’s cheaper and easier to spend more on marketing and take the reputation hit for bad maintenance.

        • 0 avatar
          gtemnykh

          My brother’s path to becoming an independent mobile diagnostician is an interesting one. Engineering Physics bachelor’s degree at Cornell (literally the hardest major at the school), started grad school doing materials science research, something about fiber optics. Grew very unhappy and disillusioned with grad school and academia in general, dropped out and initially started working at his friend’s indie place just to get by. Crappy pay, and an expectation to crank through work even if it is done poorly (not at all how my meticulous brother likes to work). He started working on launching his own business, starting with wanting to work on old motorcycles, dabbling in repairing friends’ cars just to make ends meet. A year or so later he started to find his niche: auto diagnostics. Several years on, he’s got a good thing going. He’s his own boss, lives in an awesome rural setting with his optometrist wife (lifehack for budding entrepreneurs: get a sugar-momma :p ). When things are a bit slow locally he drives out to Staten Island for a few days where a fellow mobile-diagnostician friend has a multiple-week backlog of clients. Very decent money in a few days’ time. The work is fascinating to observe, and his strong background in circuits and fundamentals of electricity/physics come in very handy. I think it is highly-intellectually satisfying work for him. And the more black-box control modules manufacturers insist on cramming into cars, the more business there will be for people like him.

          • 0 avatar

            The split in techs is real and has happened in other industries as well. I’m seeing more and more guys in the local dealers bays with a a small van labeled with trade names for Diagnostics or Air bag repair or A/C. Never used to see that, became very big in the last 5-10 years. A family friend does auto A/C work in Boston out of a van he says more then half his work are with new vehicle dealers he said he used to work mostly with local independents but more and more the dealers are calling him.
            The marine industry is the same. Still lots of guys doing everything but more and more guys pic out a specialty like electrical or electronics. A friend of mine who does plumbing says he’s seeing it too.

  • avatar
    MeaMaximaCulpa

    I have that exact same Bburago F40, well my is in a bit worse shape due to a somewhat unsuccessful reassembly.


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