WSIB TO REVIEW COLLISION REPAIR RATES AFTER INDUSTRY STUDY PRESENTED

Shop savings could top $1 million in Ontario

November 25, 1999

How do you find out if your Compensation Board payments are too much ? By checking all premium levels and costs for injuries and accidents for every registered shop in a specific geographic area for the last three years.

As part of a broader health and safety initiative in Hamilton-Wentworth involving the Ministry of Labour, the Ontario Service Safety Alliance and the local collision repair trade association, the records of every collision repair shop that was registered with the Workplace Safety and Insurance Board (WSIB) were reviewed and tabulated. The results ?

Only 50% of all shops in the test area were registered with the WSIB.

Majority of shops paying some $4.08 per $100 payroll when the industry rate is only $3.51

Despite a provable year to year reduction in accident and injury frequency from 3.7 to 3.3 lost time injuries in the collision repair industry last year, the year 2000 assessment rate is planned for a 6% increase. This increase is due to the increases in accidents in muffler shops and car washes that are grouped in with collision repair shops in the code 630 frequency rate.

WSIB is now reviewing the trade association's data to determine how much of a rebate is owing for incorrect assessment rates to shops and to review the options for the industry request to place the collision repair industry in its own classification rate, which would negate the rate increases planned for the year 2000.

John Norris, Spokesperson for the Collision Industry Action Group in Ontario, who presented the data to the WSIB says A If the data is confirmed and acted on by WSIB, the rebates could be as high as $2.4 million for Ontario shops. Just by keeping the premium rate level at the proper current level, even though it should go down, will save shops close to $1 million.

A reduction of accidents and injuries benefits every shop and the Board has agreed that our rate assessment should reflect the largely good job that the industry does.

A pilot program has been proposed that would provide for even higher rebates for those shops that complete an approved health and safety program. Shops would share in 75% of the difference between current WSIB costs and the costs after completion of the health and safety program

CENTENNIAL COLLEGE ANNOUNCES A NEW AUTOBODY PRE-CERTIFICATE COURSE

November 25, 1999

Centennial College, School of Transportation has announced a new theory based course that prepares uncertified journeypeople to write the Ontario Auto Body Repair and Collision Damage Certificate of Qualification exam. Using the apprenticeship curriculum as a guideline, the student will review vehicle parts identification and construction, welding procedures, damage repair techniques, plastic repair procedures, panel replacement and rebuilding and paint products and procedures.

This is strictly a preparatory course. It is not a replacement for the Ministry of Education and Training approved Auto Body Repair and Collision Damage Apprenticeship program.

The course will be held on Tuesday and Thursday nights at the Ashtonbee campus on Warden Avenue in Toronto.Starting date is February 1 and ending date is March 16, 2000, from 7 till 10:00 p.m. Cost is $194.64

For more information call the College at (416) 289-5005

NIAGARA REGIONAL POLICE ANNOUNCE PROPOSAL FOR A PUBLIC SERVICE CENTRE

November 23, 1999

Niagara Regional Police Services Board this morning unveiled a proposal to the collision repair, insurance and towing industries for the future handling of accident incidents in the region.

The Board had originally put forward a proposal in early 1998 for a privately owned and insurance company financed Collision Reporting Centre, but was met with such resistance that the earlier proposal was abandoned.

The Board is now proposing a police run centre that would house the accident reporting for most of the 9,844 accidents that occur in the region, minor incident reporting, licensing department functions and some central records functions.

Under this new proposal, motor vehicle accidents from most of the central Niagara region will be towed to the Centre and the accident reported. The tow will not normally leave the hook but will be allowed to continue to the customer's choice of repair facility. Some areas of Grimsby and Fort Erie will not be included in the areas where vehicles must be towed from, as the Board felt that they were too far away from the Centre to be effective.

Police hope that 80% of the accidents in the central Niagara region can be taken or towed to the Centre, thereby reducing police response costs. The theory is to take the accident to the police rather than have the police go to the accident.

It is expected that a new building will be constructed to serve this purpose and the building is not proposed to have any space for a police tow compound. Insurance companies will not be allowed to operate within the Centre. Police expect that this two year pilot project will reduce their costs and help in getting accident reports out to insurance companies with faster turnaround.

On March 31, 1998, the Hamilton District Autobody Repair Association (HARA) on behalf of their member shops in Niagara region, wrote to Niagara Regional Police with concerns over the privately financed proposal. On June 15, Chief Waddell advised us that the private proposal was being re-examined, following HARA public meetings held in St. Catharines to receive shop input.

The Niagara Police Services Board proposal is available free of charge to all HARA members.

NEW U.S. SURVEY SHOWS DIFFERENCE IN SOUTHERN ONTARIO SHOP PAYMENTS AND EXPENSES

October 30, 1999

According to shop survey forms sent to INSIGHT magazine in Cleveland and scheduled for publication in November, labour rates in the southern Ontario marketplace, Canada's biggest, vary dramatically between Toronto and Hamilton, Ontario. Although only separated by 60 kilometers in physical distance, the labour rates between the areas seem much further.

Identical shop survey forms were sent by the trade associations in Toronto and Hamilton to their local members and shops asked to fax their results directly to INSIGHT magazine who tabulated the results.

The survey showed that there is a up to 20% difference in labour rates between the two cities with Hamilton's labour rate showing an upside limit of $48.00 per hour being reported. Despite paint costs being similar in both cities, material allowance for paint were significantly higher in Hamilton by 2-8 dollars although towing costs were identified to be $30 higher ( at $130) in Toronto than Hamilton. Tow bill pricing averages have dropped from the average of $285 only three years ago after local trade associations introduced new "anti-chasing" measures in Toronto.

Hamilton shops reported receiving shop supply payments from insurers, Toronto shops did not, however Toronto shops reported no paint re-imbursement capping with Hamilton shops reporting an occasional cap at $350.

Most insurers were paying for waste disposal in both Hamilton and Toronto and colour tinting of paints being paid for in both cities although at a higher level in Hamilton than Toronto.

Over the last year, identical surveys have been carried out in over 100 North American cities and the comparison data can be reviewed at:

Complete survey results are available in the November issue of INSIGHT magazine or by fax request to the Association's fax number at (905) 526-1947. On line access is available through the INSIGHT web site or the Canadian industry web site at www.ciia.com under interesting links. www.ciia.com is home to over 120 shop web site hosts in english and french language Canada.

GOOD CAREERS-GREAT FUTURES AUTOBODY APPRENTICESHIP GOES TO THE SHOPPING MALL

Win a $1000 skilled trades scholarship by attending mall presentations

October 30, 1999

In a bold new initiative to bring skilled trades for the collision repair industry to the public interest and recruit new apprentices for the industry, the Ministry of Education, Colleges, and Universities along with Human Resources Development Canada and the Industry-Education Council are assisting the Hamilton District Autobody Repair Association (HARA) with mall talks.

Every Tuesday night at shopping malls in the Hamilton area, trades presentations are made to collected secondary school students and parents. The events are advertised in the television, radio and print media in advance and often more than 100 students attend these evening talks.

With introductions including high school bands and special gift certificates from mall stores, host Ron Lewis, leads off the evenings with demonstrations and entertainment. Attenders are eligible for a $1000 Skilled Trades Scholarship from the mall and can win a wide range of gifts from exhibitors and shop owners.

There is an employer contact table where students can ask shop owners specific questions about their future careers and opportunities with some shop equipment being available for presentation. Students are encouraged to bring resumes. Booths from the Student Job Centre, Ministry of Education-Apprenticeship and Human Resources Development Canada are also set up. Instructors from the local community college are in attendance to answer any questions about apprenticeship training in the collision repair trade.

A video from television star and Canadian do-it-yourselfer Red Green, showing how NOT to repair a car is also shown and owner/ operators speak about the dollars to be made in this trade. Guest host, John Norris of HARA announces new apprenticeship offerings and the need for more local collision repair apprentices. Last week, Larry Jefferies of CARSTAR Automotive Canada was one of the guests and spoke of the needs of the industry for more skilled computer technicians, marketing staff and information and customer service professionals in the sector.

WARNING TO DEALERS-FRAUDULENT INSURANCE CLAIMS

October 11, 1999

Many dealers provide crash repair parts for collision repair and auto refinish shops in Ontario. These commercial and wholesale customers make up a significant proportion of your parts business, particularly in electrical, electronic, safety and body parts areas. Many headlight and lense assemblies are purchased from you by local collision shops.

Although the vast majority of shop purchases from you are legitimate and used on the damaged vehicles and paid for, there are some warning signs to watch out for to tell you that not all is well.

A number of recent court cases in the United Sates and insurance industry investigations by the Special Investigation Units (SIU) of major Canadian insurance companies, have given us an insight into where areas of fraud activity have been identified.

What appears to be the most common fraud issue at the shop goes like this:

• Price out a series of needed new OEM parts from the dealer for the damaged car
• Get the estimate approved by the customer and the insurer
• Order the OEM parts from the local dealer as per the estimate
• Once the parts arrive, reference the OEM parts to the invoice for billing to the insurer
• Install used or aftermarket parts instead of the new OEM parts. Sometimes the shop will repair the damaged part for reuse or install stolen or chop-shop parts stolen to order for this job
• At the first of the next month (your next billing cycle) the shop returns the OEM parts for credit to the dealer.

There can be variances on this. Last week 27 bodyshops in California were accused of reporting a claim for an accident that never happened and then installing damaged parts on the vehicle painted/paint the same colour of the undamaged vehicle. The appraiser would come and inspect the car, photograph the vehicle, submit the paperwork and then the shop would reverse the process. Insurers in Ontario would normally demand copies of the parts billing to prevent this.

HOW A DEALER CAN STOP THIS

There are reports of Ontario new car dealer parts departments that would will send an invoice to the shop without the part as they know it will be returned. This can be considered to be aiding an insurance fraud and the dealer can be charged. John Norris of the Collision Industry Action Group and HARA suggests:

• Never, ever invoice a part and not ship
• Watch your wholesale account billings and returns very carefully.
• Set a clear return policy and apply large return penalties against those that abuse the process.
• Do not deal with shops that consistently return significant number of parts
• Be diligent in watching these shops credit. Often these shops, when they reach 90 days with many suppliers, go bankrupt.
• Be credit smart. I had a dealer call me about a new credit application from a shop reputed to be associated with an organized crime family, some 50 kilometers away. Ask yourself, as a dealer, why would a shop bypass four other closer dealers to come to me? Is my marketing that good ? No-none of the other dealers would touch him.
• Co-operate with police and SIU investigators

Collision Repair Facilities Accreditation On Track

TORONTO, March 25, 1999

The development of a proposal for the accreditation of collision repair and auto refinish shops in Ontario is the focus of a joint working group of the Collision Industry Standards Council of Ontario (CISCO) and the Insurance Bureau of Canada (IBC).

Both organizations responded positively to a call from the Honourable Rob Sampson, Minister without Portfolio with Responsibility for Privatization and government lead on auto insurance, to build on the work done by CISCO. He urged them to jointly develop a system which ``will significantly benefit Ontario consumers and would be welcomed and supported by collision repair shops and insurers alike.''

Discussions currently underway relate to proposed legislation that would require all collision repair and auto refinish facilities in the province to be licensed and to meet specific standards including environmental standards, trade certification and conformity to municipal laws. Furthermore, the proposal would require that shops meet certain equipment and business operating standards.

``These discussions are positive and represent a `good faith' approach by both sides to come to agreements that will be beneficial to consumers in Ontario'' said Alex Szabo, CISCO's new President. CISCO represents collision repair and auto refinish facilities across Ontario.

``The insurance industry supports an accreditation program to ensure that all consumers have access to quality collision repair facilities,'' said Stan Griffin, IBC Vice President, Ontario.

In letters to CISCO and IBC dated March 10, 1999, Minister Sampson re-iterated his support for this initiative and indicated that if the objectives of safety, quality, fairness and enforcement are met, he would be prepared to recommend to government that steps be taken to make the program mandatory across the province.

The organizations expect to submit a joint program proposal to Minister Sampson in early spring.

PROFITABILITY WORKSHOPS TO HELP SHOPS CUT COSTS & IMPROVE PROFITS

Award winning shop owners to speak and new programs explained

February 19, 1999

How can I save money at my shop and be environmentally friendly ?

How will the new rebuilt vehicle inspection program and self-management affect me ?

What do I need to do to be accredited in Ontario ?

Can I attract new customers to my shop with better internal management ?

Five new profitability workshops, funded in part by Environment Canada have been announced for the next three months in Ontario. These workshops, modeled on similar successful and well attended evening programs in Waterloo, Cambridge, Sarnia and North York, will use practical and profitable examples and promote pollution prevention by explaining the advantages of the proposed new standards and guidelines for better environmental management for auto body shops. A number of regional governments are also involved.

The workshops, that bring suppliers of low-pollution paints and solvent recyclers together with HVLP gun manufacturers and distributors show shop owners and operators the efficiencies and profits to be gained in moving towards acceptance of the new standards.

Shop accreditation, self-management of the industry and the new rebuilt vehicle inspection program are updated and highlighted in the workshops by knowledgeable guest speakers.

Co-sponsored by local trade associations, admission to the workshops is free for local association members and usually $10 for non-members.

Evening workshops are planned for:

Toronto February 24 Centennial College with the Toronto Collision Repair Society

Hamilton March. 3 Mohawk College with the Hamilton District Autobody Repair Association

Mississauga March. 9 Radisson Hotel with the Peel Vehicle Repair Association

Oshawa March. 24 Holiday Inn with the Durham Auto Body Association London

April 13 London Convention Centre with the Organization of Auto Body Rebuilders

For further information, please contact the Collision Industry Action Group at (905) 662-9499