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Let the private insurance company operate how they want. Just like any shop owner has the right to refuse to work on certain cars or refuse to use certain parts. You can also refuse to work on cars that fall into this situation. Just like John Eaves did, the guy heading up the lawsuit.

 

To quote John Eaves from the article

"Shops have ongoing business relationships, and this program is designed to destroy them. And that’s against the law.”

No, it is not against the law. It is perfectly understandable from the insurance companies perspective to dictate what parts you can and can't use to repair cars under their policy. This sounds a lot like aftermarket extended warranties, which everyone here seems to dislike (for the most part), but nobody is heading up a lawsuit against them.

 

If the program was as terrible as Eaves makes it out to be, I would think there would be more pushback from other shop owners, and State Farm would drop the whole idea.

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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