Is Flat Rate Destroying the Auto Repair Industry? | Steve Blanchard

Like the show? Show your support by using our sponsors. 
 
Need to update your shop systems and software? Try Tekmetric HERE

Launch your tool game to the next level with Launch Tech USA! HERE

In this episode, Jeff welcomes veteran technician Steve Blanchard to compare Quebec's hourly-pay system with Ontario's flat-rate model. Steve shares his journey from GM dealerships in Quebec to working in Ontario, explaining how different pay structures affect technician morale, quality, and shop culture. The conversation explores leadership, service advisor processes, warranty work, EV technology, right-to-repair concerns, and why rewarding quality—not just billed hours—creates stronger teams.

Timestamps:

00:00 Incentives Without Flat Rate
 00:46 Podcast Introduction and Guest
 02:35 Steve's Early Career in Quebec
 05:39 Hourly Pay and Seasonal Layoffs
 12:20 Why Quebec Doesn't Use Flat Rate
 16:48 Moving to Ottawa
 21:03 Red Seal Exam and Flat Rate Shock
 22:53 Hands-On vs. Written Testing
 28:18 How Flat Rate Hurts the Trade
 34:41 Comebacks and Bad Incentives
 36:37 Warranty Work and Cutting Corners
 39:22 Teamwork vs. Competition
 39:49 Training Your Replacement
 40:34 Gatekeeping in the Shop
 42:32 Dispatch Challenges
 44:52 Switching to Hyundai
 45:48 Hyundai Failures and Shop Politics
 49:31 When Flat Rate Becomes a Punishment
 51:40 Warranty Repair Blowup
 56:09 Free Labor and Employee Loyalty
 01:02:27 DIY Repairs and Safety Risks
 01:06:17 EVs and Self-Driving Technology
 01:10:12 Vehicle Data and Privacy Concerns
 01:14:13 Subscription Features and Paywalls
 01:16:52 Software Pricing Challenges
 01:17:28 Affordable EV Truck Discussion
 01:19:51 EV Charging Reality
 01:21:00 EV Lockouts and Liability
 01:22:37 The Right-to-Repair Debate
 01:25:30 Technician Certification Changes
 01:27:11 Remote Vehicle Control and Privacy
 01:30:25 Flat Rate vs. Hourly Pay
 01:32:18 Leadership and Shop Culture
 01:40:04 The Role of Service Advisors
 01:43:03 Injury, Career Longevity, and Exit Plans
 01:44:45 Better Appointment Preparation
 01:55:07 Wrap Up and Closing

Follow/Subscribe to the show on social media! 
TikTok - https://www.tiktok.com/@jeffcompton7
YouTube - https://www.youtube.com/@TheJadedMechanic
Facebook - https://www.facebook.com/profile.php?id=100091347564232