Not all repair shops are like this, but there are a lot of them that are dishonest. I've heared many horror stories working in body shops, from fellow colleagues doing even more rotten things to cars than simply not touching them. Not doing the work is certainly the lesser of two evils!
When you start getting into people cutting corners in collision repair shops is when things start becoming scarry.
I agree with Setheroo, in that a larger sum of people want something for nothing these days. People are like vultures on craigslist, etc., until they see the bill and the majority of the time, want to lowball the piss out of you or it's a no-show.
I also agree with Tropher E, in that I think this instance comes down to one person; the douchebag district manager. That doesn't mean that all Jiffy Lube's are crap. What it does insinuate, though, is that you should check your car and it's components/ maintenance in question before and after you pay anyone to do work on it. No matter if it's a lube shop or a restoration shop.
You can tell by the way he called his manager that they knew it was pre-meditated. He was too calm and too general when he said "we were caught on tape" over the phone for it to have been any other way.
I won't let anyone lay a single hand on my car, just because I don't agree with certain proceedures. I only use an impact gun and air rachets, etc. to remove things that I couldn't otherwise and never use them for installing anything... I never perform work, even if I'm asked or told to, unless it's absolutely necessary and I only charge for the work that I do. With any new customer, I will physically show them what was done, and/ or how my work has bettered their vehicle and what they can do to keep problems from occurring again (if anything can be done).
I believe in fair trade. The world doesn't function on dishonesty and lazyness. It can't.