GNYADA November 2017 Newsletter

Technician Strike Still Affecting Chicago Dealers Stay compliant when dealing with unions 15

This past summer, roughly 2,000 unionized techs in the Chicago metro- politan area went on strike, impacting as many as 140 new-vehicle dealer- ships in that region. Many of the affected dealerships were forced to stop performing repair work during the strike. The strike eventually ended when the technicians’ union approved a new four-year contract that addressed sev- eral of their concerns. However, deal- ers in that area continue to feel the loss of business. During the strike, appointments for essential repairs and

warranty work were performed else- where while appointments for nonessential repairs were not sched- uled, meaning little work is coming in even today. Crucial rules for union dealings To avoid the loss of time and business that can result from mishandled union matters, the Association would like to remind dealers that they are federally prohibited from taking certain actions, or making certain statements, with regard to unions.

Dealers with unionized employees cannot:

Threaten employees with adverse action or discriminate against them for supporting or participating in union activity; Ask employees about union activities, including the location of meetings, or about internal conversations between unionized workers; Promise employees benefits if they vote a certain way on a union issue; or Surveil union activities, whether employees are striking or not.

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Avoid Violations in Your F&I Department

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Did you know some NY dealers have paid millions in fines for F&I noncompliance in recent years? On January 16, 2018, GNYADA will host a class focusing on the requirements of dealerships’ F&I processes and sharing practical steps to eliminate risks of violation. The class, called Reduce Compliance Risks in F&I Departments , will be presented by Max Zanan, President of Total Dealer Compliance (TDC), a GNYADAAllied Member. In preparation for the class, GNYADA spoke with Mr. Zanan about the need for dealers to adhere to the variety of rules governing this key step in the vehicle transaction process:

Q: In your experience, what are the areas where auto dealers run into the most problems with F&I compliance? A: Payment packing and F&I product jamming represent the biggest problems for dealers. These offenses damage a dealership’s reputation and are high on the violation-list of State and Federal law enforcement agencies.

Q: What are some of the hidden consequences dealers face for failing to follow F&I rules and regulations? A: Poor F&I procedures are a major

Q: What tips and procedures will

TDC's class address to help dealers reduce their risk of violations?

A: This class will focus on internal policies, audits, regular training, and improved complaint-resolution processes. These steps are easy to implement, will reduce a dealer’s exposure, and will increase customer satisfaction and retention. To register for the January 16 class, taking place at the Center for Automotive Education & Training, please contact Carole Rogner: 718.640.2012 / carole@gnyada.com.

reason car buyers are apprehensive about going to dealerships. In fact, customer dissatisfaction with the lack of transparency in this step is the main driver behind internet disrupters such as Vroom.com and Shift.com. Dealers who don’t evaluate the way they do business may not survive the digital revolution. (Remember what happened to travel agents once Expedia entered the market.)

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • November 2017

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