Most of the problems stem from the archaic way that mechanics are paid. It rewards the slackers, the "upsellers"...etc. It does not reward the person who may be good at diagnosis. Diagnosis works pays straight time "at best". All of the maintenance work, and/or parts replacement type work pays at "flat rate" times.
Example, in our shop, the driveability guy will do the diagnostic work and then send the vehicle over to the general side to get the fuel pump replaced. Under warranty, the most he can get for diagnosis is probably .3 hrs. The fuel pumps on most GM vehicles can easily be done in half the R&R warranty time. Mind you, I have little sympathy for him as he's been offered a hoist in his bay, but he's a prima donna from the old days when driveability guys did carb overhauls all day long and made 20 hrs a day. He doesn't want to do the "dirty work". So I happily change the fuel pumps for him. The industry has changed so drastically that I now make as much money or more then he does. When I worked with him in the 80's, I'd be lucky to make half of what he did.
The whole system has to change, and there is talk in the air that it's going to. Here's the big problem, every scenario I've seen offered, includes a big pay drop for the techs. Who in their right mind will put up with a 30-40% drop in pay? You might just as well get out of the trade if that happens. And guess what? Ton's of the "good" guys are getting out. If some financial things work out for me this next year, I'll be phasing out of the trade as quickly as I humanly can.
If you take away the flat rate system, you will end up with drastically less production...which means drastically less money flowing in the doors to pay the techs. I've seen so called "team" systems in other dealerships where a team of techs share total hours made. How unfair is that? Big time unfair to the competent and efficient tech! Sure, he gets a few more bucks an hour then the others, but that will never make up for what he could produce on his own. The problem is that the flat rate system as we have known it, has made some of us so much money that it would be a major paycheck changing event if you simply went to straight time at 8 hrs a day with "maybe" 5 dollars more an hour.
Customers will "always" be billed by the flat rate system. You can say what you want about the system, but I can't see many customers being interested in paying vastly different amounts of money for the same basic repair based on "which" tech happens to be working on it. It would make no sense for the customer to pay more because a tech is slower, or less experienced...etc.
Ian