A few days ago news started to reach us of cuts in rates on contract work carried out on behalf of Dixons Stores Group International (DSGi – Currys, PC World, Dixons) which has led to almost universal condemnation from repairers.
The rate cuts arrive at a time of spiralling fuel costs, inflation and uncertainty in the economy.
RepairCare, who administrate the service work on behalf of DSG have allegedly been forced by DSG to accept these new rates as DSG look to “substantially reduce their operating costs”.
These cuts have led to repair rates being slashed by a massive margin, more than a 50% cut in some cases and under certain circumstances, no payment being made at all.
Additionally a speed of service fee, which is offered to provide fast service, has been removed as well as additional payments for operation within the M25 area.
The news of this was delivered earlier this week by phone or a visit by regional managers from RepairCare followed by letters sent to the relevant repairers the same day advising of the changes to payment structures to take effect from the 1st July 2010, some mere two weeks from notification.
Seemingly, according to reports, any service work received before the end of June but submitted for payment any later than 1st July 2010 are to be paid at the new, reduced, rates.
No negotiation or consultation was undertaken with the repairers has been reported.
This has led to outrage from many repairers that have worked with DSG through RepairCare for some years. Repairers have been so angered by these cuts that they have approached both the Whitegoods Trade Association (WTA) and Domestic Appliance Service Association (DASA) to see what the trade associations can do to help the situation. Both the WTA and DASA have privately condemned the seemingly Draconian cuts and changes in conditions and have been in communication over what steps, if any, they can take in respect to these events.
Within the trade forums and, privately, repairers across the UK have been expressing their anger.
With access to the trade forums you can find the discussion thread on the subject using this link
Many repairers have now stated that, with the rate reductions and removal of payments for speedy service, that Currys service calls will be treated with less urgency. For customers this will almost certainly mean a slower and poorer service. Some repairers are even having to assess whether or not their businesses can survive these rate reductions.
We are monitoring the situation actively and will report any news as the situation develops.
