Gunder’s Auto Center, Inc., has announced that some insurers are now
willingly paying its increased labor rate, which went from $42 per hour
to $48 per hour in June 2012.
Ray Gunder, founder of Gunder’s
Auto Center, which has served Lakeland, Fla. and its surrounding
communities for more than 44 years, determined that the current labor
rates being offered by insurers were insufficient to sustain
profitability and continued growth.
“It had been almost six
years since rates had moved, driving our net profit into a danger zone,"
said Gunder. "Our business and our techs struggling financially left me
with no options. Every insurance employee I talked with certainly
hadn’t missed their cost of living raises. If repairers sit around and
wait for a hand-out, that will be what they will likely get. I felt that
for my company and its team members to keep up with the rising costs of
living and for us to keep abreast of ever-increasing operational costs,
raising our labor rates was necessary. We needed to take action, and we
did."
Once Gunder determined the new rates, they were posted in
the shop’s reception area, and each claims person and appraiser who
Gunder’s dealt with was informed of the new rates.
According
to Gunder, this increase, which he considered minimal, was considered by
many insurers to be substantial and was met with resistance. However, based on his reputation for not hesitating to act
on behalf of his customers in asserting their rights for “fair and
acceptable” compensation for “reasonable and necessary” repair costs,
the insurers elected to pay the rate, albeit only after making their
concerns and objections known.
Some insurers, however, have yet
to pay the increased rate, according to Gunder. As such, Gunder’s has
had to file lawsuits on behalf of their customers via an
Assignment of Proceeds and/or Power of Attorney.
“To date, two of
these insurers have asked our attorney what his charges are to date,
perhaps with the thought of conceding, paying our rates and avoiding
protracted litigation," Gunder said. "With regard to the others, we’ve
filed for discovery and scheduled depositions with their claims people,
and I’m anxious to see what we find as it will no doubt lead to other
issues to be used in future actions…if and when they should be
required.
“I’m sure all insurers are concerned with having to pay
other shops in the area if they pay Gunder’s, but I have to say that I’m
stunned at how far we’ve come in getting fair and reasonable
compensation for things like PMC-Logic material invoicing, mark-up on
sublet, parts return fees, and many other reasonable and necessary
charges, and have consistently heard that other local repairers don’t
request such compensation, even though they know Gunder’s is getting
paid for them. I’ve had appraisers tell me, ‘Ray, I’d pay it if
asked…but very few even ask!’
“As for me, I’m not looking to fix
the world, I just want to fix my customer’s cars properly, pay my techs
fairly for their efforts and provide for my family.”
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