As a long time Specialized owner, sounds very discouraging. In my opinion, Specialized should include labor coverage at least for some reasonable period. To expect the customer to pay labor for their defects is not reasonable.
I'd try to negotiate the charge with the bike shop. Maybe point out that this was a manufacurer defect (which they represent as a dealer) and that $200 for a simple warranty repair will not keep Specialized customers loyal in the future.