Issue Date: Warranty Administrator for GM Dealers Oct 15, 2006, Posted On: 10/15/2006
CPI climbs; labor rate decision time
It is October and that means in a couple weeks many of you will be making your decision on whether to enroll or re-enroll into the Option 'C' labor plan. Briefly, that plan is the one where GM ties your warranty labor rate to the Consumer Price Index (CPI). Thanks to the high price of gas through the spring and summer, the CPI took a healthy jump. As of the August numbers published in September, the increase in January will be a solid 4.31 percent. With a national average labor rate at $68, that is nearly $3 growth. That isn't earth shaking, especially if your warranty labor already leaves something to be desired, but it also isn't the measly buck or two you have gotten in years past. We covered all you need to know about getting a labor rate increase last year and little of the founding advice has changed. You can download the October 1, 2005 issue of Warranty Administrator on the DealersEdge website under the "free stuff" in the resources area.