Autobody industry web site reaches new monthly milestone in Canada

April 12, 2004

The www.ciia.com (Collision Industry Information and Assistance ) web site, the largest collision industry web site in Canada, operated by the Hamilton District Autobody Repair Association (HARA) just celebrated two special milestones.

The first is the addition our 100th shop on the site and of the most distant shop to the popular AUTOBODY SHOPS portion of the site with the addition of J & G Automotive Ltd's new web page from Iqaluit, Nunavut.

As well, March 2004, was a milestone for the association's site with over a quarter million hits or 252,349 hits in the month, or 8,140 per day. Direct visits to the web site in March were 13, 345

Association President, Tony Nigro, says that HARA is very pleased that we can provide this information and assistance to shops. "Our Employment page, autobody shop finder and news/events page are the most popular" says Mr. Nigro

"With the addition of productivity pages for money-making activities, not-included lists and "What you missed on the estimate" listing, the site is an instantly-useable and a profitable package of information. HARA Members get access to other Members-only pages and areas on the site with a free password available by calling 1-866-309-4272 (HARA) or
e-mail to info@ciia.com.

"With free virtual shop tours, updated events and news, and with employment and apprenticeship ad listing offered at no charge to shops, we've proven that the industry web site can indeed help shops in a great number of ways" he said.

For more information on how your shop can be featured on the industry web site, simply call 1-866-309-4272 (HARA) or use the online form at:

http://www.ciia.com/provinces/ontario/featured.html

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A second class for the popular Basic Estimating training course is being offered in Brampton at the end of the month.

The first class in Mississauga started May 3 and was sold out.

The basic six-night course in designed to help shops of office employees who need assistance in estimating collision damage on cars and light trucks.

Class attendees have been apprentices, office front line staff, appraisers, adjusters, and a number of shop managers.

Taught by experienced apprenticeship instructor, Jim Miles, the three-week course includes introduction to estimating, understanding vehicle construction, fundamentals of estimate writing, understanding collision
manuals, additional charges and collision damage analysis.

A course outline and student information sheet is available on request. Students on the waiting list will get priority. Classes are from 6:30 to 9:30 p.m. Class size is limited so please call early to avoid
disappointment. Class notes and binder are included.

Course fee is $350.00 (plus GST) for local collision trade association members and $450 for non-members (plus GST)

Students can register by calling HARA at (905) 664-7888 or 1-866-309-4272 or e-mail info@ciia.com

The Brampton training location will offer classes on Monday and Wednesday evenings:

May 31, June 2, 7,9,14,16

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Funding drive now on to offset costs of national contest trip to Winnipeg

A student from the autobody class at General Brock Secondary School is this year’s winner of the Ontario Skills technological contest for autobody. This contest, held this year in Waterloo, Ontario in the first week of May, pits high school and apprenticeship students in a contest of skill and talent to determine the winner. The Gold award for the Ontario championship for autobody went to Mark Millson, an Ontario Youth Apprenticeship Program (OYAP) student, from teacher Ron Postma’s Burlington, Ontario class.

Sam Piercey, collision centre owner/operator of Budd’s Collision on Speers Road in Oakville, where Mark works as apprentice, encourages students to take autobody and collision repair courses in High School. He says “ the future of our industry is these types of talented students that can make $60-100 thousand dollars a year when working in a professional shop”. Calling Mark a talented, good bodyman, Sam is also contributing funds to offset the costs of sending Mark and his instructor to represent Ontario in the Skills Canada competition against all the other provincial teams to be held in Winnipeg on May 22.

About half of the money has already been raised through donations by local collision repair shops, with the local trade association, HARA (Hamilton District Autobody Repair Association) kicking in $500. Contributions to help defray the costs of the trip are being gladly received at HARA at 1-866-309-4272 (HARA) or by contacting David Graves at the Halton Board of Education. The Board will issue tax receipts.

Volunteer judges for this year’s Ontario competition were Randy Pickard from City Automotive, John Hido from Discovery Collision and Jack Martino from Martino Bros. Collision. Judges commented on the large number of students and parents asking about collision repair as a future career choice.

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May 19, 2004

The new Liberal government’s budget, announced last night, is proposing new positive steps to apprenticeship and funding that will benefit the collision repair industry. Some of those recently announced changes, also available at www.gov.on.ca are:

- proposing a new, 25 per cent refundable Apprenticeship Training Tax Credit on salaries and wages, with an increase to 30 per cent in the rate for businesses with payrolls up to $400,000, which would encourage employers to hire apprentices in designated industrial, construction, motive power trades and certain service trades.
- increasing the number of new entrants into apprenticeship programs by 7,000 to reach 26,000 annually by 2007-08;
- providing new academic upgrading and training options each year for 6,000 young people who have dropped out of high school with increased funding through the Ministry of Training, Colleges and Universities of $2 million in 2004-05, growing to $15 million in
2007-08;
- providing 1,500 annual scholarships of $1,000 each for students who leave high school but return to complete their high school credentials and enter apprenticeships. The government will invest $3 million in this initiative in 2004-05, growing to $4.5 million annually by 2005-06. This initiative also includes a $2,000 signing bonus for employers to encourage them to hire and train these apprentices; and
- removing cultural and bureaucratic barriers faced by skilled internationally trained workers by investing $12.5 million annually by 2005-06 to work with professional regulatory bodies to increase access; expand training and employment services to help with the transition to Ontario's workforce; and improve information on employment opportunities and requirements for individuals considering immigration to Ontario.

For more information on apprenticeship and for a copy of “Steps to Collision Repair Apprenticeship” please see;

www.ciia.com/provinces/ontario/stepstoapp.html

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Flamborough police raid ties stolen vehicles to Cambridge used-parts business

The chop shop involved a massive tract of rural land zoned for agricultural use. Police found about 80 goats and 1,000 chickens.

A Flamborough couple arrested Sunday in what police say is one of the largest chop-shop operations in Ontario history, have close ties to a Cambridge used auto parts shop accused of fronting the stolen goods.

About 35 police -- including heavily-armed tactical squad members -- raided the Safari Road farm early Sunday. They found ATVs, trucks and cars that had been reported stolen and thousands of auto parts, including 400 engines.

Most items were stored in and around a large barn on the 60-hectare property.

Police also found unregistered guns on the property.

Police arrested Manuel Fagundes, 45, and his wife Valentina, 45. They are accused of being the masterminds behind the sophisticated and large-scale professional chop-shop operation that has spread to at least one other region.

Hamilton police Superintendent Ken Bond said it's too early to put any kind of dollar amount on the operation, but he predicted it's likely to be in the "millions."

Yesterday, Waterloo police searched Country Used Auto Parts Ltd., on Walnut Street in Cambridge, where they uncovered "thousands" of auto parts, all alleged to have come from the Flamborough farm.

"This is best described as the end-user of a chop shop," Waterloo Staff Sergeant Bryan Larkin said.

A title search shows that the business, which has been registered since 1998, is owned by a Valentina Fagundes.

A man and a woman were arrested at the Cambridge shop and face numerous theft and stolen property-related charges, police said.

Their names have not yet been released by the police.

The Flamborough investigation was prompted by city councillor Dave Braden, who contacted Hamilton Police Chief Brian Mullan earlier this year outlining concerns and suspicions over the property.

Braden said he'd received numerous complaints from constituents over the past five years concerning suspicious activity at 1759 Safari Rd. He also said that many residents have expressed concern for their safety.

"We had a number of reports from (people and passersby) on Safari Road that there were unusual truck movements late at night with their lights off," he said.

Today, more than 50 investigators and identifiers from the Provincial Auto Theft Team, OPP, Waterloo, Niagara, and Six Nations police are assisting Hamilton police through the task of taking inventory of all the parts, and trying to identify what is stolen and what is not.

They are looking for serial numbers to see if they belong to vehicles reported stolen.

"It's something to see. This is a large-scale operation and we will be there for several days," Bond said.

Aside from all of the engines and parts from at least 400 cars and trucks, there's also an assortment of vehicles, debris from construction sites, and skids of wood on the property.

It's just a mess," Sergeant Carol Pacey said.

"It's very dirty, tiresome, tedious work. It's going to be an extended period of time."

According to police, the Fagundes property is zoned for agricultural purposes. About 80 goats and 1,000 chickens were also found. The SPCA has been called in to investigate, as has the Ministry of Environment, which was on site looking at the construction debris.

An air ambulance was standing by during the raid because of police concerns about weapons on the farm.

Police uncovered 14 "long guns" -- rifles or shotguns. Of these, 13 were not registered, and four were stored unsafely, Pacey said.

Manuel Fagundes is charged with three counts of theft under $5,000, in relation to three hydraulic lifts stolen from a Mississauga company in March; and two counts of theft over $5,000, in relation to a stolen 1993 GMC 4X4, and a 1999 Honda ATV.

Valentina Fagundes was arrested on an outstanding committal warrant and taken to the Vanier Centre for Women in Toronto. Once she has served her time, police expect she'll be returned to Hamilton.

About 4,500 vehicles are stolen each year in Hamilton, Bond said. Of these, 85 per cent are recovered in one piece.

The other 15 per cent likely end up in chop shops.

Barry Gray, the Hamilton Spectator
Jennifer Morrison
The Hamilton Spectator
jmorrison@thespec.com 905-526-3283

With the Ontario government's move to drop the $300 fee cap proposal on towing, storage and clean-up at accident scenes in southern Ontario, the Ministry of Finance is looking for replacement programs.

Those programs would need to protect consumers from exorbitant tow prices as well as assist insurers in reducing their high towing costs to further their efforts for a 10% decrease in auto policy premiums.

At a meeting at the Queen's Park Circle office of MPP Michael Colle, Ministry of Finance officials, collision repairers, insurance brokers, tow operators/owners and insurance company representatives spent an hour and a half looking at various options to protect consumers.

Recommendations included the passage of Bill 186, the Collision Repair Standards Act, which contains clauses that allow for partial tow truck industry regulation, the advancement of the police tow programs used successfully in Hamilton and the enforcement of the current rules in Toronto for tow truck activities and operations at the Collision Reporting Centres.

MPP Colle suggested a further meeting with stakeholders to try and refine the suggestions into a workable package that the government can use.

For more information on the Collision Repair Standards Act please see:

http://www.ciia.com/provinces/ontario/cisco.html

For more information on the Collision Reporting Centres and how to become an accredited shop listings at the Centres, please see:

http://www.ciia.com/crsa.html

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In October 2002, an Ontario new car dealer went to small claims court with an insurance company that had repaired a leased vehicle without informing the dealer. Not withstanding the reality the consumer did not own the vehicle. In fact the dealer found out after the warranty expired the vehicle had been in two accidents.

The dealership argued the following two points in front of the court:

a) They had lost profit because they were denied to opportunity to repair the vehicle.
b) Their own body shop would have undertaken a general inspection of the vehicle beyond the damaged area to determine if potential problems existed due to the accident. (The court accepted this evidence)

The issue before the court was whether the insurance company had a duty to notify the dealership that their vehicle had been in two accidents. The court ruled that the insurance company should have informed the dealership of the accidents to their vehicle. Although, small claims court decisions do not necessarily establish case law they can be used to assist other legal challenges of a similar issue. The case file is Court File 3095/01 (OADA
Hotline)

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How does the Collision Repair Standards Act move forward?

That was the question asked of senior Directors of the Ministry of Consumer and Business Services last week at a special meting on the 35th Floor of the Ministry's offices.

In attendance were Alex Szabo, President of CISCO, Larry Jefferies, Vice-President of CARSTAR Automotive Canada, Bill Davis, Executive Director of the Ontario Automobile Dealers Association, Doug Whitehead, National Claims Manager of Allianz Insurance, representing the Insurance Bureau of Canada, Wendy Hillier, National Claims manager for Aviva Canada Inc., and John Norris, Executive Director of the Hamilton District Autobody Repair Association.

With 25 written consumer and shop complaints on towing issues (an area that the Collision Repair Standards Act allows to be partially regulated in the Act), HARA Executive Director John Norris urged the government to take action immediately with advancing the regulations needed to make the Collision Repair Standards Act (Bill 186) effective.

Senior government Directors asked a number of questions that lengthened the one-hour meeting by an extra half-hour, and offered suggestions on the Bill' s improvement.

Industry attendees urged the government to move forward with the Bill and amend any sections that required updates as the circumstances arose, similar to the changes that are planned over 12-18 months with the vehicle branding regulations.

For further information on the Collision Repair Standards Act, 2002, please call
1-866-309-4272 (HARA) or e-mail hara@ciia.com or see:

http://www.ciia.com/provinces/ontario/cisco.html

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As part of an $18 million funding announcement by the province of Ontario, a significant sum is being invested in the training of autobody and collision repair apprentices.

The announcement by Premier McGuinty to continue the government's commitment
to a highly skilled and trained workforce will mean an investment in a number of community college autobody and collision repair programs.

Included in the announcement is contribution to a number of training facilities. The dollar figures shown are the total contribution to the colleges and include the autobody and collision repair trade:

Algonquin College for their pre-apprenticeship program $228,845
Algonquin College for hoists and equipment $426,750
Canadore College for auto glass technician course $50,000
Canadore College for frame rack and other equipment $194,729
Centennial College for welding fume extractor, hoists and staff $1,068,906
Mohawk College for electronic measuring and new equipment $1,085,209
St. Clair College for automotive scanners etc. $499,023

These continuing investments in collision repair training and the introduction of new pre-apprentices classes will mean that students will be working with equipment that will meet the repair requirements of new vehicles that have new technological innovations included in them each year.

Apprenticeship and other autobody and collision repair courses are offered at Niagara College in Welland, Mohawk College in Hamilton, Centennial College in Toronto, Fanshawe College in London, Algonquin College in Ottawa and Canadore College in North Bay, Ontario.

For further information on how to become an apprentice in the exciting field of autobody and collision repair call the HARA office at 1-866-309-4272 (HARA) or see "Steps to Becoming a Collision Repair Apprentice" at:

http://www.ciia.com/provinces/ontario/stepstoapp.html

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The Boyd Group Income announced that its revenue for the first quarter of 2004, increased 18% to $42.7 million over the first quarter of 2003. Net income for the quarter increased to $1.6 million compared to a net loss of $260 thousand in the same period a year ago.

The company attributes the increase to the acquisition of the Gerber Group and the resulting contribution from Gerber's operations.

"Our first quarter revenue and net earnings growth demonstrates the impact of our Gerber Group acquisition," said Terry Smith, President and CEO of Boyd Group. "There is tremendous value creation potential for consolidators in the North American automobile collision repair industry and we are focused on continuing to capitalize on this market opportunity."

In the fourth quarter Boyd had reported a year-over-year decline in sales, pointing to weaker sales volume in some depressed U.S. markets as part of the cause for the decline.

Boyd operates 81 corporate locations, and 11 franchised locations operating under its trade names.

Boyd Group Income Fund (TSX: BYD.UN)

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Akzo Nobel is once again calling for submissions for the 2004 nominations for the Most Influential Women in the Collision Repair Industry.

This program, which began in 1998, was established by Akzo Nobel to recognize the unique leadership characteristics, accomplishments and contributions of women to the collision repair industry. In addition to the industry honor Akzo Nobel, in conjunction with the I-CAR Education Foundation, established an annual scholarship program in the name of the Most Influential Women for females seeking a career in the collision repair
industry.

"Each year we have seen this program grow and the qualities of the individuals that have been recognized speak for themselves," said Steven Gornall Director of Marketing for Akzo Nobel. "There are numerous quality individuals with extraordinary talent and dedication. We are proud to honor these individuals each year and to provide scholarships in their name that contributes to the longevity and growth of aspiring women in the field."

"It was a great honor and a tremendous boost to my self-esteem to be included in such a great group of women," said 2003 award winner Karen Fierst, President of KerenOr Consulting in Silver Spring, Maryland.

"Sometimes you need to be recognized and encouraged in order to keep going. The event itself is remarkable and Akzo Nobel made me feel like a queen for the day. It is imperative that women in the industry are recognized. It is mextremely difficult for women to establish themselves in a male-dominated industry. Akzo Nobel is helping to foster more female participation in the industry through this event and by establishing the scholarship," added
Fierst.

2004 recipients will be honored at the Sixth Annual Gala, which is scheduled for Thursday, November 4, 2004, in Las Vegas, Nevada.

Nominations may be submitted online here.

Nominations may also be submitted via fax to Scott Emerine at (423) 929.7222
or by e-mail to semerine@cenergy.com.

Deadline for submissions is July 30, 2004.

Last year, HARA (Hamilton District Autobody Repair Association) Board member
and Collision Centre co-manager at Brian Cullen Collision in St. Catharines,
Ontario was one of the Most Influential Women award winner.

(see headlines)

Continuing inquiries from shops have prompted the office at the Hamilton
District Autobody Repair Association (HARA) to remind shops that certain
provincial environmental regulations have been changed and shop costs are
now reduced.

A number of shops have been contacting the office recently, looking for help
in identifying emissions from their shop in accordance with Ontario
Regulation 127/01

This regulation, passed in 2001, requires that airborne emissions from
facilities, starting January 1, 2002 are reported to the Ontario Ministry of
Environment. The type and amount of emissions from each shop are to be
measured. It was expected that the cost for hiring engineers to measure and
report these emissions would cost over $3000 per year per shop.

However, due to recommendations and suggestions from HARA, the Ministry
announced on November 10, 2001 a new reporting requirement that only shops
that use over 3000 kilograms of coating product or 3000 kilograms of solvent
need actually report. If a shop uses less than 3000 kilograms, they need do
nothing.

For most shops, this means that only shops using about 50 liters of paint
per week or more need actually report, depending on the amount of solids in
the paint mix.

Tony Nigro, President of HARA, says that " We believe this significant
savings that HARA has provided shops will apply in over 98% of the shops in
Ontario. Savings to the industry will total over six million dollars, that
would have gone to hiring engineers and reporting costs." Mr Nigro cautions
shops that they still must possess the mandatory Certificate of Approval
document from the Ministry of Environment

For further information on these issues, please call the HARA office at
1-866-309-4272 (HARA) or see:

http://www.ciia.com/provinces/ontario/environment.html

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The Honourable Jim Karygiannis, P.C., M.P., Parliamentary Secretary to the Minister of Transport, is holding an industry discussion table on skills development in the transportation sector in Ottawa today.

“World class, sustainable transportation systems, such as Canada's, require the vision and energy of an innovative transportation sector, driven by a highly skilled workforce,” said Mr. Karygiannis. “These discussions will provide the Government of Canada with an opportunity to work with stakeholders and academia in order to attract the best and the brightest Canadians to pursue careers in this field.”

Representatives from the Air Transport Association of Canada, Alberta On-line Consortium, Association of Canadian Community Colleges, British Columbia Institute of Technology, Canadian Aviation Maintenance Council, Canadian Shipowners Association, Canadian Trucking Alliance, Canadian Trucking Human Resources Council, Canadian Urban Transit Association, Centre for Transportation Engineering and Planning, Memorial University Marine Institute, Motor Carrier Passenger Council of Canada, National Aboriginal Achievement Foundation, Railway Association of Canada, and the University of Calgary will attend.

The discussions will focus on creating a short-list of challenges in the area of skills development; identifying concrete and attainable steps to collectively address these issues; identifying and expanding existing initiatives to improve the profile of transportation as a career of choice; and exploring new initiatives to meet identified skills development needs.

Following the discussions, Transport Canada will work with provincial authorities to address items raised during the discussions.

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Canada Imposes Provisional Duties on Imports of Steel Fuel Tanks Following a Complaint Filed by Spectra Premium Industries Inc.

BOUCHERVILLE, May 5 /CNW Telbec/ - Spectra Premium Industries Inc. (TSX: SPD), a North American leader in the manufacture of automobile, light-truck and heavy-duty truck aftermarket parts, also in the process of expanding its presence in the Original Equipment Manufacturer ("OEM") market for steel fuel tanks, is pleased with Canada's decision to impose provisional duties on imports of replacement steel fuel tanks, following a complaint filed by the Corporation.

The Canada Border Services Agency ("CBSA") announced that, as of May 3, provisional duties ranging from 39.4% to 83.4% will be imposed on imports of certain replacement steel fuel tanks from the People's Republic of China and Chinese Taipei.

This decision follows an investigation that the CBSA initiated on December 19, 2003, after receiving a complaint filed by Spectra Premium Industries Inc. of Boucherville, Quebec ("SPI").

"The Corporation has been exposed to a lot of financial damage following the importation of replacement steel fuel tanks from the People's Republic of China and Chinese Taipei. We are looking forward to the final outcome of this investigation in August 2004", confirmed Mr. Denis Poirier, CA, Executive Vice- President and Chief Financial Officer of Spectra Premium.

The preliminary results of the CBSA's investigation show that imports from the two countries were dumped into Canada by amounts that averaged 39.4% for imports from the People's Republic of China and 83.4% for imports from Chinese Taipei. Provisional duties are being imposed to offset the dumping. Provisional duties are expressed as a percentage of export prices.

Dumping occurs when goods are sold to importers in Canada at prices that are inferior to the selling prices in the exporter's domestic market or at unprofitable prices. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.

On February 17, 2004, the Canadian International Trade Tribunal (Tribunal) made a preliminary determination that the evidence disclosed a reasonable indication that the dumping of certain steel fuel tanks has caused injury to the Canadian industry. The Tribunal will now conduct a full inquiry into the question of injury and is expected to issue its final decision by

August 31, 2004. At the same time, the CBSA will continue its investigation and will make a final decision on the dumping by August 3, 2004.

A copy of the Statement of Reasons, which provides more details about this investigation, will be available on request from the Anti-dumping and Countervailing Directorate and at the following Web site: www.cbsa.gc.ca/sima within 15 days.

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Todd Bourgon has been appointed to the position of Regional Manager for Ontario for PPG's Refinish Group, it was announced by Lee Smith, director, Refinish Canada. In his new position, Todd will supervise all Territory Managers in the Region and be responsible for all sales activities in Ontario.

Bourgon brings more than 11 years of sales and marketing experience to Refinish, with extensive knowledge of both consumer and business-to-business channels. Most recently, Bourgon was Region Sales Manager, National Accounts with PPG Canada's Architectural Coatings. Prior to joining PPG Canada, he has held positions of increasing responsibility with Labatt Breweries of Canada, Baker Gurney, McLaren Press Ltd., and Lock and Associates.

Bourgon holds a B.A. from the University of Trent, and attended Ryerson University's Graphic Arts & Communications program. He and his family will reside in Southern Ontario.

"Todd brings a wealth of experience to the Refinish Group," said Smith. "We are confident he will be a major asset to our organization. We look forward to working with him and welcome him to our team."

(thanks to BODYSHOP Magazine)

(see headlines)

Larry Jefferies has been named the Chair of the Automotive Industries Association of Canada (AIA) for 2004 - 2005. Jefferies, Executive Vice President CARSTAR, has close to 30 years of automotive experience including 15 years experience with the AIA, and co-founding CARSTAR Automotive Canada.

"It's an honor to be named Chair of the AIA. I hope to build on the momentum and legacy of leaders that have come before me," said Jefferies. "Our goal is to make sure that the automotive service provider is well represented and supported, and to build on successes across the industry."

Jefferies co-founded CARSTAR Automotive Canada in 1994, establishing the first network of branded collision stores. CARSTAR has grown to over 95 locations.

Jefferies other experience includes nearly 20 years with BASF Canada Refinish Division; member and eventually chairman of the Paint, Body and Equipment (PBE) Council prior to joining the AIA Executive Committee; and over 15 years of work with I-CAR. Jefferies was also a founding participant of the Canadian Collision Industry Forum (CCIF).

AIA's mandate is to promote, educate and represent members in all areas that impact the growth and prosperity of the automotive aftermarket industry in Canada.

The 2002 Annual Report for Road Safety Vision 2010 - a long-term plan to make Canada's roads the safest in the world - was released today by Transport Canada on behalf of the Canadian Council of Motor Transport Administrators (CCMTA).

"The 2002 report shows that Canadian roads are safer today than they have ever been, but there are still too many road fatalities," said Transport Minister Tony Valeri. "By taking the actions and meeting the targets set out in Road Safety Vision 2010, we can save an estimated 5,000 lives over the next eight years."

Over the past 14 years, the number of licensed drivers in Canada has increased from approximately 17 million to 21 million. The number of registered vehicles has also increased from approximately 16 million to 18 million. Despite these increases, fatalities and serious injuries have decreased over the same period.

In 2001, Canada ranked fifth among member countries of the Organisation for Economic Cooperation and Development, based on fatalities per billion vehicle kilometres travelled. Ahead of Canada were Great Britain, Sweden, the Netherlands and Norway.

"We must keep on working hard to make our roads safer," said Mr. Valeri. "We will continue our efforts, in cooperation with the CCMTA, to achieve our goal of having the safest roads in the world."

CCMTA incorporates officials from all federal, provincial and territorial governments, as well as associated members from transportation-related organizations.

The report contains the Road Safety Vision 2010 action plan to improve road safety in Canada, and numerous specific targets to deal with defined problem areas. It also provides data on Canadian road accidents and international comparisons on road safety.

Road Safety Vision 2001 was developed in 1996 to support the goal of Canada having the safest roads in the world. In October 2000, the Council of Ministers of Transport endorsed an extension of the program, called Road Safety Vision 2010.

For more information please see: http://www.ccmta.ca/english/index.html

By Meredith Macleod
The Hamilton Spectator

Ontario New Democrat Peter Kormos calls auto insurance rates a "monster that can't be caged" and that the only solution is a government-run insurance system.

In another sign that the province's big guns are entering the battle for Hamilton East, Kormos lined up this week beside NDP candidate Andrea Horwath to deliver another salvo in his rally cry for public auto insurance.

"Big insurance is picking the pockets of Hamilton East drivers and the McGuinty Liberals are doing nothing about it," Kormos, the NDP's auto insurance critic, said outside Horwath's campaign headquarters.

"Instead of the 10- to 20-per cent reduction the premier promised before the election, rates are still going up," he said.

Horwath said a 30-year-old man living in Hamilton pays between $2,400 and $3,132 a year to insure a 2004 Chrysler Sebring. In similarly-sized Winnipeg, where there is public insurance, that man with the same car pays $1,522.

"Hamilton East drivers deserve better than Liberal-condoned highway robbery."

Kormos said the auto insurance industry is a "a mad dog that can't be leashed. They had $2.6 billion in profits (last year) after years of gouging and crying poor."

But Derek Fee, a State Farm spokesperson, said his company actually lost $142 million last year in its auto insurance business, virtually all of it in Ontario. Skyrocketing costs for medical care, rehabilitation and liability claims, combined with climbing costs to repair vehicles, outpaced premiums.

Insurance companies paid $1.5 billion for medical coverage last year, compared to $300 million in 1992, he said. Litigation costs have jumped from about $300 million to $1.2 billion in the same time.

But he said reforms to the system begun last fall, which include more specific protocols for treating accident victims, should begin to control costs -- savings which can then be passed on to the consumer. While he wouldn't give precise figures, Fee said State Farm has not applied for an increase to its rates for this year. The company is the third biggest
supplier of auto insurance in Ontario

"If the government hadn't taken these steps, most people would have been seeing a rate increase this year. Because of cost controls, the vast majority will not see an increase."

However, Kingsway General Insurance needs a 3.4-per-cent increase to keep
insuring poor risk drivers, said president and CEO John McGlynn.

Traditional insurance companies are cutting rates by cutting risk, he said. Kingsway provides an alternative to Facility Association -- an insurance pool provided to those who can't get insurance elsewhere. Kingsway can offer much more affordable insurance to the increasing group of drivers turned down by other insurers, said McGlynn.

Facility was approved for a 28 per cent premium hike after losing $450 million last year.

"There is a lot of public good in depopulating Facility. It shouldn't be the fifth largest insurance company in Ontario."

Fraudulent claims, along with medical and legal costs, are squeezing the bottom line at Kingsway. If the Kingsway rate increase is turned down, the company will have to severely restrict the amount of insurance written in Ontario, said McGlynn.

Mark Yakabuski of the Insurance Bureau of Canada says a public insurance system is built upon good drivers subsidizing bad ones. The systems pay out less than half the benefit levels of private policies in Ontario, he said, and don't allow victims to sue for damages.

Ontario would also take a big economic hit, he argues, if it instituted government insurance. The industry currently employs 42,000 people and pays about $1.4 billion in provincial taxes each year. Yakabuski says $15 billion is invested in Ontario by auto and property insurers.

"None of that will stay here if the government decides to run auto insurance."

Reforms to the system will be enough to get it back on track, said Yakabuski.

Most drivers will see "substantial" cuts, he said. "The bottom line is that there will be discount of at least $700 million on auto insurance premiums in Ontario this year."

That will be good news to people like Ruth Van Horne.

When the Hamilton pensioner called her car insurance company recently to complain about an 11-per-cent increase, she was told she was lucky.

"The woman said some people's rates went up 40 per cent. How can a person on a fixed income afford something like that?"

But what's the alternative?An Environics Research poll last year found that 48 per cent of Canadian drivers would continue to drive their same vehicle, and only 7 per cent said the hike would stop them from driving.

Still, the industry must do a better job of convincing consumers hikes are necessary, said David MacDonald, vice-president of Environics.

"They talk about fraud and the cost of medical treatment but they have never made more money. They will pay a big price if they think they can fleece consumers."

Courtice Auto Wreckers must remove berm says Ministry

The province has given an Oshawa company until the end of May to remove huge berms of paper-fibre sludge from a provincially significant wetland near the border with Puslinch Township.

The direction is contained in an emergency order issued by Geoff Carpentier, district manager of the Hamilton office of the Ontario Ministry of Environment. Normally, the public has 30 days to comment, but Carpentier said the ministry believes the situation is so dire it precluded public consultations.

The ministry order said analysis of three samples taken in January and February from the effluent discharge pipe attached to the berms indicate its toxic makeup kills trout and water fleas. Storm water runoff flows from the berms into Fletcher Creek, which is designated as a Class 1 Cold Water Fishery.

The 70,000 tonnes of blue-tinged sludge is made up of recycled magazines and newspapers, sand and compost.

The berms, some as high as a three-storey building, were placed three months ago at the rear of the Gore Road property of Doug Stafford by Courtice Auto
Wreckers Ltd. of Oshawa.

Courtice workers have, over the last few weeks, moved the berms away fromthe creek and wetland, but Carpentier said that's not good enough.

"We've told them to have it removed and eliminate the adverse effects," he said. "We do not believe they can do that with it remaining on site. The risks still persist."

Courtice and Stafford, 74, also face charges from the Hamilton Conservation Authority in connection with the incident and have received an order from the City of Hamilton to remove the sludge under the site alteration bylaw. The authority accuses the firm and Stafford of placing fill in an environmentally sensitive area, part of the Beverly Swamp. The next court
date is set for May 12.

The authority also wants the sludge removed.

"We'd like the site restored," said Kathy Menyes, the authority's director of watershed planning and engineering. "That's our ultimate goal."

Courtice -- which also operates under the firm name Ontario Disposal -- uses the sludge to produce Sound-Sorb to soundproof gun ranges across Ontario. Stafford said he's used the back of his land as a private shooting range for 30 years.

Officials from Courtice Auto Wreckers and the company's law firm, Saxe Law of Toronto, did not return calls seeking comment. Carpentier said, however, Courtice has appealed the order to the Environmental Review Tribunal. That doesn't preclude it from following the emergency order, ministry officials say.

Stafford, who manufactures windows at a shop on his property, is mystified at the commotion. He believes there's nothing wrong with the sludge and government authorities are targeting Courtice and himself because they have nothing better to do.

According to the emergency order, the effluent from the discharge pipe contained lead and exceeded the provincial water quality standards for E. coli, iron, cobalt, aluminum and copper. It says brook trout, which typically spawn between October and December in the Beverly area, are sensitive "at any stage of life" to metals such as copper. It also says
other contaminants, such as black pigment and paint chips, have been found in the berms.

(courtesy of Hamilton Spectator)

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In 2001, the National Institute for Automotive Service Excellence (ASE) established National Automotive Service Professional's Day on June 12 to honor the commitment and dedication of automotive, truck and collision technicians, along with parts specialists and other support professionals who serve the motoring public. All will again be recognized in the 2004 Chase's Calendar of Events.

"We can't do enough to recognize the men and women who service and maintain the highly complex vehicles upon which we depend for our day-to-day transportation," said Ron Weiner, ASE president. "Their skill and dedication are second to none, and ASE created National Automotive Service Professional's Day to spotlight these individuals for their commitment to their customers, their craft and the automotive industry at large."

courtesy of CollisionWeek

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Proposal secures a total settlement of $48 million dollars for plaintiffs from the two manufacturers.

On April 23 a proposed settlement agreement was reached between the plaintiffs and both BASF and DuPont, in the class action suit alleging a paint manufacturer price fixing conspiracy.

Defendants BASF and DuPont have both agreed on a monetary settlement in return for the litigation against them being dropped by the plaintiffs. Akzo Nobel made a similar settlement with the plaintiffs in 2003 for the amount of $18.75 million.

According to documents filed by plaintiffs in the case, this latest settlement is for a total of $48 million- of which $36 million will be paid by DuPont and $12 million by BASF. The amounts were reached by using a mathematical formula based on each company's paint sales during a certain period covered by the suit.

In addition to the financial settlement, both companies have agreed to make certain internal company documents relating to the case available to the plaintiffs, as well as allow both present and past employees to be interviewed by the plaintiffs for further discovery in the ongoing case against the remaining two defendants. If the settlement is approved, PPG and Sherwin-Williams will be the two remaining defendants in the case.

A hearing to approve the proposed agreement has been scheduled for May 10.

The litigation, which accused the paint manufacturers of violating the Sherman Act, initially began in 2001 with the filing of several suits that were later consolidated into one larger class in the U.S. District Court for the Eastern District of Pennsylvania. In 2002 a class was certified to represent all direct purchasers of automotive refinish paint sold by the
defendants during an eight-year period from 1993 through 2000.

The civil suits came in the wake of the public acknowledgement of a U.S. Department of Justice (DOJ) inquiry into alleged price fixing by automotive refinish paint manufacturers. The grand jury convened by the DOJ disbanded in 2003 without handing down any criminal indictments. However, the civil litigation remained.

Irv Lipp, spokesperson for DuPont, drew attention to the DOJ investigation in a statement to CollisionWeek saying, "DuPont is committed to complying with the law. In that vein, DuPont has settled private litigation related to alleged antitrust violations in the refinish industry. DuPont strongly denies the allegations in the litigation and is confident that it could prevail at trial. This belief is reinforced by the earlier DOJ investigation, which resulted in no findings or charges. However, DuPont made the settlement as a business decision to avoid the enormous cost and distraction of continuing to defend the litigation and trial, which could have continued for several years. In short, we entered into the settlement
as a business decision consistent with our commitment to dedicate our focus and energy to our customers."

BASF issued a statement saying substantially the same, "BASF Corporation is committed to complying with the law and we have done so in this case as evidenced by the fact that the U.S. Justice Department, after extensive review of the facts, declined to pursue this matter further. However, we believe it is in the best interests of the company and our customers to put this time consuming and extremely expensive litigation behind us and to move forward with the business of serving our customers without this distraction. As a result we have agreed to a proposed settlement and we look forward to continuing to serve our customers with high quality products and the highest professional standards."

(courtesy CollisionWeek)

At the National Industry Issues Forum (NIIF), hosted by the Society of Collision Repair Specialists (SCRS) on April 8 in Nashville, TN, repair facility operators had the opportunity to express their concerns about issues important to their businesses. Among the concerns were issues such as steering, estimating database misuse, insurer intrusion into shop management and operations and OEM repair issues.

Each year, SCRS hosts the NIIF so that collision repair professionals can voice their concerns about industry issues in a room where only repairers are in attendance. The NIIF is unique because it focuses exclusively on the concerns of repairers, offering them the opportunity to exchange ideas and examine ways to resolve issues that affect many. The meeting is open to SCRS members and affiliates, as well as all collision repairers.

Chad Sulkala explains several of the issues raised by repairers during SCRS's National Industry Issues Forum for CIC attendees on April 9.

With a healthy representation of independent shops from across the greater United States, the National Industry Issues Forum continues to function as an important conduit for collision repair improvement. Resolutions discussed at the forum are then forwarded to other groups that can help initiate action, such as the SCRS Executive Committee and the Collision Industry Conference.

Gary Wano, of GW & Son Autobody in Oklahoma City, OK and Treasurer of SCRS, along with Chad Sulkala, of Acme Body & Paint in Jamaica Plain, MA and a member of the SCRS Board of Directors, detailed the results of the NIIF during the second day of the Collision Industry Conference, held April 8-9 in Nashville.

According to Wano, the meeting offers, ".insight as to what the industry itself is saying are issues within day-to-day operations." Wano explained to the CIC audience that there were over 20 issues that fell into roughly four broad categories.

Sulkala explained that the first category was what they call the "bellman programs." According to Sulkala, these bellman programs are a repair issue similar to what occurs when a hotel bellman takes your bags at check-in and delivers them to your room. The concerns cited in this category by repairers include insurer steering, and programs like Progressive's "Concierge" claims handling program, where owners leave their vehicle with Progressive to handle the entire repair process cutting repairers out of the loop of
customer contact and denying them the opportunity to create a future customer. Repairers expressed concern that there can be significant downside to these programs and that the repair industry should promote a "your car, your choice" alternative.

ISSUES RAISED AT THE
NIIF 2004

1. Bellman Programs

Customer being taken away from shop
Customer ends up going to cheapest provider
Steering Issue
Promote "your car, your choice"
All downside, no upside
2. Database Misuse

Feather, Fill, Block
P & M Caps (Thresholds)
Sublet $'s based on sales not DB times
Adjusting paint times - saying it is industry accepted standard
3. Insurance Intrusion into Shop Management

Scheduling requirements
Cycle time requirements
Rental Car usage standards ($/day)
Specifying part, paint, supplier, etc.
Shifted admin. Cost
Specified database use.
Create a uniform claims handling procedure (UCHP) for all insurers, all
shops.
4. OEM Issues

Certification
Shop/Dealer Expansion
Repair procedures not being followed
Technology increasingly limits repair

Another group of issues raised during the NIIF would fall into a second category covering database misuse. Some of the concerns repairers have regarding "database misuse" could be solved with database enhancements. According to Wano, among these was the repairers desire for research into "feather, fill and block" time to create an automated calculation to apply to repaired panels. According to Wano, while attendees agree that repair time will vary depending upon damage, they believe there is a need to separate the refinish steps and determine if a formula can be applied automatically. In addition, refinish materials charges would be applied to this refinish labor procedure, something that does not take place if repairers include the time for feather, fill and block sanding in the metal
repair time.

Also, the perennial issue of paint and materials caps or thresholds was also raised during the NIIF. Repairers still report that insurers continue to apply these automatic calculations as hard ceilings on reimbursement amounts versus their intended use as a suggested threshold that would require the repair facility to justify additional charges.

Another common database issue is the increasing frequency that shops report insurers are including sublet dollar charges for common repair items such as wheel alignment instead of labor time from the estimating guide. Collision repair facilities typically charge flat rate hours for these repairs due to the increased complexity of performing a wheel alignment after a collision repair. Repairers report that many times insurers seek to pay just the lower
price advertised by tire and wheel specialist facilities for alignments.

NIIF participants also raised the issue of insurers incorrectly adjusting refinish flat rate times for procedures such as blending within a panel. This issue was also raised independently at the CIC meeting.

Sulkala said that repairers also identified concerns in another category termed 'insurer intrusion into shop management decisions.' Included here are concerns such as repair scheduling and its impact on rental car usage and cycle times. Insurers typically prefer repairs to be started early in the week and completed before the weekend to eliminate weekend rental days. Repairers complain that this insurance company requirement has the
unintended effect of creating production bottlenecks, lowering production efficiencies and increasing cycle time.

Also of concern was the specification of parts and other suppliers by insurers including estimating system usage. According to Sulkala, the NIIF attendees would like to see the CIC create a Uniform Claims Handling Procedure to address differing direct repair and non-direct repair claims handling scenarios. According to Wano, the complexity of many insurer requirements has turned basic reception duties into complex, highly compensated positions that have dramatically increased many repair facilities' overhead costs.

Finally, Wano and Sulkala cited concerns raised by repairers that fall into the category of OEM issues. One such issue is the level of accessibility of OEM training and certification programs. According to Wano, increasing technical complexity has been a part of the collision repair industry for quite some time and has been accepted by the independent and dealer repair communities. However, many of the latest OEM certification programs require significant capital expenditures to comply- in some cases approaching $100,000 to become "certified" to repair one vehicle model. Repairers are concerned that OEMs may be developing cars without regard for affordable repairability and information access.

The NIIF also brought forth the concern over what repairers believe is a failure by many OEMs to adequately educate the repair community on important safety issues. As an example, Wano related the anecdote of a repair facility that was completely destroyed by fire after a technician began grinding a Mercedes magnesium door shell. Magnesium flakes, such as those produced by grinding, can be extremely flammable. Other OEMs are also using magnesium parts in some models in an effort to reduce weight and maintain strength. Repairers want OEMs to push critical safety information to a wide audience
well ahead of the vehicles appearing on the street.

SCRS asked that CIC take the concerns raised during the NIIF and incorporate them into the issues that are taken on by CIC committees this year.

(courtesy CollisionWeek)

Real, Positive Change To Increase Skills And Support Economic Growth

TORONTO, April 16 /CNW/ - The McGuinty government will help more than 57,000 young people find jobs or start their own business through the Ontario Summer Jobs program, Mary Anne Chambers, Minister of Training, Colleges and Universities, announced today.

"We are building an economy based on high skills and high standards by developing one of the world's best workforces," said Chambers. "Ontario Summer Jobs is one way we're helping students get the workplace skills and experience they need to achieve their goals."

From April to September, Ontario Summer Jobs helps young people ages 15 and up find work or start their own summer business. This year, the Ontario government is investing $50 million in Ontario Summer Jobs.

Ontario Summer Jobs offers a range of services and opportunities, from job search and self-marketing services to an exciting job working in a wilderness park as an Ontario Summer Ranger.

Opportunities exist for businesses and community organizations to get a $2 per hour wage support to hire students for up to 16 weeks. As well, the program provides students with up to $3,000 to help them start up and run their own summer business. Jobs are also available in provincial government ministries and agencies.

Information about the Ontario Summer Jobs Program is available on the ministry's website at www.edu.gov.on.ca or the Ontario government's youthjobs.gov.on.ca site, and through the Training Hotline at 1-888-JOB-GROW or (416) 326-5656 in Toronto.

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HARA's Golden Horseshoe Golf Tournament , scheduled for May 4 at the Dundas Valley Golf and Curling Club will now take place on Tuesday June 29.

After discussions with the Club, tournament organizers were advised that at least two holes would not be ready in time for the Tournament and that the earlier May date might also be caught in a water drainage issue.

Golfers were told last year by HARA that this year's tournament would have all holes available on this beautiful course.

"For our golf friends, to whom we had made a commitment to a full course, missing more holes would not have been fair to them. Moving the tournament to June 29, assures us of all 18 holes available , warmer weather and a good continuing late June Tuesday date into the future on a course they liked", said Alex Szabo, HARA's Golf Chair.

Individual golfers are being notified by the HARA office. Golfers that may not available for the new June 29th golf date will be refunded their payments.

For further information, please call 1-866-309-4272 or hara@ciia.com

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NEW HARA CONTACT INFORMATION

The HARA office has new phone numbers. We apologize for any recent inconvenience. We are eager to hear from you and help you with any problems or needs.

Our new contact information is below:

Hamilton District Autobody Repair Association (HARA)
mailing: P.O. Box 47594, Centre Mall,
Hamilton, Ontario
L8H 7S7

Office: 350 Dosco Drive, 2nd Floor
Stoney Creek, Ontario
L8E 2N5

Phone (905) 664-7888
Fax (905) 664-3340
Toll free 1-866-309-4272 (HARA)

E-mail hara@ciia.com

Best wishes,

John Norris

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HARA
Hamilton District Autobody Repair Association
"To represent the best interests of the industry, providing opportunities for growth for environmentally sound, profitable businesses having competent and trained professionals serving the public."

WE HAVE MOVED AGAIN (as of July 15th, 2003)

HARA's new office is: