Landmark Victory for IAM Local 701 and Illinois Auto Technicians

IAM Local 701 achieved a landmark victory at the end of the 2021 Illinois Legislative session with the passage of Illinois House Bill 3940. IAM member and Illinois State Rep. Larry Walsh sponsored this legislation calling for fair payment for warranty repairs done by Illinois auto technicians.

The issues raised in HB 3940 were identified by IAM Local 701 over three years ago after reviewing franchise agreement laws in California and Wisconsin. Currently, auto technicians are paid in warranty and non-warranty retail rates. Once this legislation is signed into law, it will help the entire Illinois auto industry by forcing manufacturers to compensate dealerships at the retail rate for all warranty repairs. IAM Local 701 represented auto technicians are guaranteed to get this retail rate. They will fight to organize other non-union technicians throughout the state of Illinois so they can obtain the same retail rate as IAM Local 701 members.  

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“This legislative change in Illinois drastically changes how our members working at automobile dealerships get paid for doing warranty work,” said IAM Local 701 Directing Business Representative Sam Cicinelli. “They will now receive fair compensation for their hard work. This legislation is a game-changer for the entire industry.  I’d like to see other states follow in our footsteps and change the industry for the better.”

“Passage of this bill is a huge victory for our membership and the entire Illinois auto industry,” said IAM Midwest Territory General Vice President Steve Galloway. “The Midwest Territory is proud of Local 701 for their leadership in passing one of the strongest bills for warranty repair compensation. This effort will serve as a model throughout the Midwest and increase our organizing efforts in the auto industry.”

The bill now heads to Illinois Gov. J.B. Pritzker’s desk for his signature.

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Updated: June 2, 2021 — 1:40 pm