Waste is produced when any job is performed on a vehicle. This can be 'used' engine oil, worn-out components, and many other products. Environmental legislation has increased the cost of waste disposal for repair businesses over the last few years, and the extra cost has led to rising labour rates.
Mike Owen, RMI head of aftermarket, says: “Expenses are going up because of the rising costs associated with waste disposal, which has traditionally been included in the labour rate.”
Labour rates are normally calculated by combining business expenses from the job with the required profit margin. This is then divided by the number of hours the job is expected to take.
Owen continues: “Many consumers will not associate waste disposal with vehicle repair, and so could go on to assume that the rise is an attempt by the business to increase profits.”
To avoid confusion, waste disposal may eventually be charged as a separate environmental item.
Owen adds: “As well as a greater degree of transparency on the bill, consumers must be shown that any waste from a repair job is their property, and that the business is being paid to dispose of it on their behalf.”