Fair Compensation for Labor and Motor Vehicle Warranty Service Agreements

ON SENATE TRANSPORTATION AGENDA 2/13/24
Fair Compensation for Labor and Motor Vehicle Warranty Service Agreements

S5085C Kennedy

The New York State AFL-CIO, representing 2.5 million union members, retirees, and their families support the above-referenced legislation.

This bill amends the Vehicle and Traffic law to establish a fair process for automobile dealers to be reimbursed by manufacturers for warranty repair services that dealers are required to provide to consumers. This will more accurately reflect the labor and other costs incurred by dealers when providing the service. The bill ensures that customers not only receive the highest quality service possible to ensure their vehicles are safe but also will help dealerships and their workforce receive fair compensation when performing warranty and recall labor operations.

Current law allows auto manufacturers to undervalue required reimbursements to dealers for needed repair work and safety issues they are required to fix but had no role in creating. This in turn makes it difficult for auto dealers to maintain adequate operations, the most important of which is to recruit and retain qualified technicians.

This legislation will improve vehicle safety and help protect customer rights and safety by ensuring auto dealers can provide the highest quality services with the most experienced and appropriately trained workforce.

Therefore, this Federation urges this bill to be passed.

For further information contact the Legislative Department at 518-436-8516.