(ALBANY, NEW YORK) - New York State Governor Hochul has signed a new bill into law that requires Motor Vehicle Dealer Franchisors to fully compensate Franchised Motor Vehicle Dealers for Warranty Service Agreements.  As of today, New York State will ensure Technicians employed at dealerships will earn equal pay for equal work.

The United Auto Workers (UAW) - notably those Locals in Region 9, led the fight for the passage of this legislation that supports the highly skilled, knowledgeable and experienced Technicians who serve as the backbone of dealerships across the State.

The State will abolish the two-tiered compensation system imposed by highly profitable Vehicle Manufacturers that were permitted, by law, to pay less than fair-market labor time allowances to Technicians for diagnostic and warranty/recall repairs they perform versus the actual fair market labor time allowances charged for out-of-warranty diagnostic and repairs.

There had previously been no definition for what “reasonable compensation” meant.

Now, the State will define “reasonable compensation” to mean the labor time allowances published in the retail labor time guides utilized by dealerships for non-warranty diagnostic and repairs.

It will also require Vehicle Manufactures to fully fund warranty diagnostic and repairs at dealerships, which enables dealerships to pay the equitable labor time allowances to Technicians.

This change is monumental and will add $900 million to New York’s taxable wage base while putting money in New Yorker’s pockets, not multi-national corporations.

In the end, New York State effectively increases the weekly earnings for both Union and Non-Union Technicians.

To Read This Labor News Story In Its Entirety, Go To: Economic Justice Victory for Automobile Technicians in New York State - UAW | United Automobile, Aerospace and Agricultural Implement Workers of America