GOVT.REQUIREMENTS CHANGED

HARA's work reduces shop costs

December 27, 2000

The Ontario Ministry of Environment’s Environmental Monitoring and Reporting Branch has proposed new reporting requirements for air emissions from auto refinish facilities starting January 1, 2002.

As part of the emphasis in the Anti-Smog Action Plan to reduce smog emissions and particularly VOC emissions from paint spraybooths, Ontario had proposed that ALL shops report the emissions of each type of VOC in their paint spray applications.

Paint spraybooth emissions in Ontario are estimated at 6000 tons per year of Volatile Organic Compounds(VOC). VOCs are invisible emissions, usually solvent based, from the spraypainting process used in paint spraybooths. They combine in the atmosphere with Nitrogen Oxide and in the presence of sunlight become low-level ozone, or smog. Smog has been shown to have significant health impacts, especially on the elderly or persons with breathing difficulties.

The cost of shop reporting was estimated to be $3000-$5000 per shop and HARA met with the Ministry a number of times to make for a fairer and cheaper process of reporting. As well. HARA filed a report with the Red Tape Commission of Ontario to identify the financial hardships that facilities would be forced to endure in hiring engineers or environmental consultants in order to handle their reporting requirements.

In response to our concerns and suggestions , the Ministry announced on November 10, a new reporting requirement that only shops that use over 3000 kilograms of coatings product or 3000 kilograms of solvent need actually report. For most shops , this means that only shops using about 50 liters of paint per week or more, need consider reporting. HARA has also proposed the creation of a solvent database in conjunction with the Environmental Assessment and Approvals Branch of the Ministry, to act as a template for shops to identify their emissions in the future.

HARA expects the cost to those few shops that do have to report their emissions to be less than two hundred dollars if they use our template database, rather than $3000 to $5000 if the shop hired a consultant or engineer to do the work. For more information please call the HARA office at 1-800-318-DENT.

YOUR OPPORTUNITY TO REDUCE WORKPLACE INSURANCE COSTS BY UP TO 75%

December 22,2000

The Safe Communities Incentive Program in Hamilton-Wentworth is considering the addition of sectoral groups within their program and the collision repair industry has been asked to participate. Twenty-two other local firms have already become eligible for a rebate of their savings realized due to improved health and safety.

The Hamilton Safe Communities Incentive Program (SCIP) is a low cost safety awareness program for your collision shop. In addition to expert training and evaluation, you will become eligible for a rebate from the Workplace Safety and Insurance Board. The Safe Communities Incentive Program is an insurance incentive group plan for collision repair industry employers participating in their local Safe Communities Program. Under SCIP, the Workplace Safety and Insurance Board (WSIB) treats the workplace insurance costs of these employers as if they were one large firm. The group then receives a 75% refund on any savings realized due to improved health and safety.

To qualify for the rebate:

The shop must have an annual WSIB premium of less than $90,000

The owner or manager must attend a total of 12 hours of safety training

After training, the shop must complete a safety evaluation with the help of one of the safety trainers.

All firms must donate 10% of their rebate back to the Hamilton Safe Communities Coalition, a registered local charity. Cost for each shop to enroll in the program is $175.00 and deadline is December 30 but may be extended.

Please note that not all shops will be able to receive rebates if their loss costs are very low.

Please call John Norris at 1-800-318-DENT for more information, prior to signing up.

WORKER COMPENSATION PREMIUMS TO DROP 8%

December 22, 2000

Active involvement by the collision repair trade associations and the new car dealership association, coupled with decreasing numbers of claims, have helped the collision repair industry to reduce by 8%, their premiums for workplace accident and illness costs to the Workers Safety and Insurance Board (WSIB)

Most collision repair, auto body and auto refinish facilities in Ontario are required, by law, to remit premiums based on payroll dollars for their workers to the Board. These premiums serve to provide a wage for injured workers and provide for possible rehabilitation.

Health and safety concerns have been addressed by the industry over the last few years with a series of industry workshops and a new booklet and poster from the Automotive Industries Association (AIA) entitled "The Top Ten Steps to a Safer More Profitable Shop".

Industry associations also have worked through the Ontario Service Safety Association (OSSA) to provide health and safety audits at no charge to shops. Industry specific WHMIS training for collision repair and auto refinish shops has been developed by OSSA and is now available for shops by calling the industry help line at 1-800-318-DENT

Premium costs in Ontario will drop from $3.71 per hundred dollars of payroll to $3.42, an eight percent reduction. Any discounts that have been earned by the shop for past good accident records, known as NEER and MAP, will continue.

Total savings for all collision repair and auto refinish shops in Ontario, if all are WSIB registered, are estimated to be 1.9 million dollars in the year 2001

SANTA CLAUSE PARADE AN INDUSTRY EVENT IN MISSISSAUGA

December 20, 2000

This year, Santa Clause painted the town for Christmas with the help of the Peel Vehicle Repair Association and Canadian paint coatings suppliers.

Keeping a commitment made at their annual gala dinner event, the collision repair and auto refinish industry in Mississauga, Ontario helped the Santa Claude parade continue to be a success.

After learning that the parade may have to be cancelled because of funding difficulties, the collision repair association in Peel region, (between Hamilton and Toronto Ontario), decided to help out. They entered a 1929 Buick convertible into the parade, complete with occupants dressed in clothes of that era. Another car was a 1984 Excalibur with signs showing industry support.

The Association also donated twenty thousand dollars to help the parade continue to bring smiles of happiness to children throughout the city. Bill Finan, Association president expressed it best. " The parade is a local tradition that we all wanted to make sure was continued. It's our industry way of giving something back to the community that we live and work in".

Almost 35,000 residents came out for the parade , with many more watching the live TV broadcast on Rogers Cable 10 Television. Also contributing toward the parade's cost with donations of $5,000 each were: DuPont Canada Inc, PPG Canada Inc. and BASF Canada, all major coatings firms in Canada and partners with the Peel Vehicle Repair Association in the movement to keep Santa Clause and the parade coming to Mississauga each year.

For more information on the Peel Vehicle Repair Association , please call 1-800-318-DENT.

SHOP ACCIDENT KILLS WORKER

December 15, 2000

Officials from the Ontario Ministry of Labour are still investigating a September 14 tragic incident in which a 26 year old technician, Sean Jamie Smith, died of injuries sustained in a shop accident.

Waterloo Regional Police were called to a new car dealership, Bennett Chev Olds in Cambridge, Ontario to find a technician pinned beneath a vehicle in the repair shop.

Ministry officials advise that the vehicle was a stretched or extended limousine-type vehicle that would not fit on conventional hoists. It was unclear how the accident occurred as there were no witnesses, but the worker was using portable or "pump" jacks to support the vehicle and Ministry officials are unsure if a hydraulic failure or possible mis-positioning of the jacks occurred to cause the vehicle to fall on the technician, killing him.

In Ontario last year some 1,693 motor vehicle technicians and collision repair techs filed claims with the WSIB. The average cost of their injury was $2,493. WSIB total cost as claims was 4.220 million dollars.

The top injury area continues to be the fingers and hands, followed by the back, eyes, knees and shoulders.

Ontario Ministry of Labour requirement for all shops is a regular inspection of all hoists.

A basic hoist safety manual is available to any member shop at no charge by calling the shop help line at

1-800-318-DENT.

Press Release For Immediate Release

November 2000

"Prep for the Future" Collision Repair Human Resource Study Releases Report OTTAWA

The Automotive Industries Association of Canada (AIA), on behalf of the collision repair industry in Canada, released today a report on the key findings of a Canada wide human resource study of the collision repair industry.

The report, "Prep for the Future" outlines the key findings of a year long study examining key issues and present and future challenges facing the Canadian collision repair industry.

"With the release of this report we have brought this process full circle, and we're bringing this information back to the industry,for their consideration and - ultimately - for their action." stated Beverlie Cook, AIA Vice-President.

The study findings included information on recruitment and retention of employees, training and skill levels as well as insight into the image of the industry. Two of the key study outputs were the development of an industry profile and a demographic analysis of the industry's workforce.

"With this kind of data and information available, the industry can now begin to tackle some of the more pressing issues it is facing. It is clear that there are solid needs in the areas of recruitment and retention as well as the image of the industry." said Beverlie Cook. "We've been very pleased, throughout the work of the study, at the level of commitment that the industry has shown. We've had solid support - from coast to coast - both in terms of the research we did and in the development of the recommendations and the action plans." added Ms. Cook. Beverlie Cook, also stated that: "the industry has aligned itself with the right organizations to take the lead on addressing these issues as well. With the emergence of the Canadain Collision Industry Forum (CCIF) as a key force in the industry, along with our own Paint Body and Equipment Council and the support of the Canadian Automotive Repairs and Services (CARS) Council we believe the industry will be well positioned." This has been an interesting and exciting process to date - and we're very pleased to be reporting back to the industry. We're looking forward to the future, as some of the plans that have been developed begin to gain ground." concluded Beverlie Cook

For further information or additional copies of the report please contact:

Beverlie Cook, Vice President Automotive Industries Association of Canada

1272 Wellington Street Ottawa, ON K1Y 3A7
Phone (613) 728-5821 Fax (613) 728-6021

or

Keith Lancastle Project Manager Human Resource

Study of the Collision Repair Industry
c/o Automotive Industries Association of Canada
1272 Wellington Street Ottawa, ON K1Y 3A7
Phone - (613) 794-5352 Fax - (613) 599-6499

Davis Signs Senate Bill (SB) 1988 (Speier)

October 23, 2000

Sacramento, Calif - After many hours of lobbying efforts, Senate Bill (SB)1988 was signed into law by Governor Gray Davis and will take effect on January 1, 2001. The California Autobody Association (CAA) testified in support of the legislation and worked closely with Senator Jackie Speier to ensure its successful passage. The CAA thanks Senator Speier for her efforts in supporting the autobody industry.

SB1988 (Speier), the bill supported by the CAA this year, encompasses a variety of insurance issues. Provisions affecting the auto body industry are a result of hearings conducted last October and November by the Senate Insurance Committee (which Speier heads). The hearings focused on auto body repair fraud, auto insurance fraud and vehicle thefts. SB 1988, among other things, provides the following:

• Requires the Bureau of Automotive Repair to implement a pilot program to inspect insured vehicles to ensure the repairs match the final invoice. The bill allocates $100,000 to the BAR to complete the study that is to be completed by June 30, 2003. A vehicle owner can request that his or her vehicle be included in the study, but it will have to meet certain criteria. The criteria require that the auto body repairs to the vehicle were completed within 120 days of the request to participate in the pilot program, and the repair bill was in excess of two thousand five hundred dollars ($2,500).
• Makes it illegal for an insurer to require a shop to pay the cost of an insured's rental vehicle or towing charges as condition of participation in a direct repair program. However, the insurer and the auto body repair shop may agree in writing to terms and conditions under which the rental vehicle charges become the responsibility of the auto body repair shop when the shop fails to complete work within the agreed-upon time for repair of the damaged vehicle.
• Allows a registered auto body repair shop that is denied participation in an insurer's direct repair program to report a denial to the insurance department, which shall maintain a record of all those denials for the purposes of gathering market conduct information. An insurer, upon the request of the department, shall disclose the fact that a denial was made.
• Requires insurers that conduct a labor rate survey to determine and set a specified prevailing auto body rate in a specific geographic area to report the results of that survey to the insurance department, which shall make the information available upon request. The survey information shall include the names and addresses of the auto body repair shops and the total number of shops surveyed.
• Requires insurance companies to provide each insured with an Auto Body Repair Consumer Bill of Rights, which shall, at a minimum, advise consumers that they have the right to select an auto body repair shop of their choice and that an insurer may not require this work to be done at a particular shop.
• Requires an insurer to inspect vehicles, either during the repair or after completion. The number of vehicles inspected shall be a statistical sampling sufficient to demonstrate to the department the insurer's efforts to reduce fraudulent auto body work during a calendar year.

The California Autobody Association (CAA) is a not-for-profit organization comprised of collision repair businesses and associated professionals belonging to the collision repair industry.

DaimlerChrysler Canada Raises Crash Parts Prices

Oct.3, 2000 Hamilton, Ontario

On October 2, 2000 DaimlerChrysler Canada quietly and significantly raised the prices of many of the company's collision repair parts. According to a report from HARA (Hamilton District Autobody Repair Association) Chrysler dealership parts managers say that the price increases will have a chilling effect on the sales of some of their parts, but advise that a number of parts prices have only had a small change. They have not been supplied any "weighted" averages by Chrysler.

One popular example is part #GN05-SS8, the rear bumper cover for the 1996 to 2000 Chrysler minivan - one of the most popular vehicles on the road today. The price jumped from $120 (Cdn) to $523 (Cdn) - an increase of over 435 percent.

According to the HARA report, Chrysler has been traditionally very competitive with aftermarket collision repair parts in Canada, but dealership parts managers say that may be history now. One manager noted that many of the Chrysler parts that have a comparable aftermarket part that is a close match have remained at the same price but parts that only Chrysler makes have been increased substantially.

Dealers advise that they have been told that Chrysler wants to follow other OEM manufacturers, or that they want to have world price on their products and are working to cut down on American customers buying at low Canadian prices and reselling in the U.S. at higher dollars. Either way, observes HARA, Chrysler appears to have opened an opportunity for aftermarket manufacturers to be more aggressive in Canada, just at a time when lawsuits over the ability of aftermarket parts to repair a vehicle to pre-accident condition are before the courts.

It is expected that aftermarket manufacturers and suppliers will showcase the Chrysler parts price increase as a reason to continue sales of aftermarket parts in Canada to maintain competition in the marketplace. Ironically, CTV National News featured the Chrysler bumper cover in its news segment on June 12, 2000, identifying that the aftermarket part appeared to not have the same strength, number of welds, weight, or bolt holes as the original equipment part.

Ontario Announces Mandatory Branding:

Written-off Vehicles MUST be Salvage or Irreparable

June 15, 2000

Ontario -- Transportation Minister David Turnbull has announced that the Ontario government intends to introduce legislation that, if passed, would require insurers and others to report information on severely damaged cars that are written off.

Since July 1998, a voluntary program has been in place to identify those vehicles and change their registration status to show either "salvage," meaning the vehicle has the potential to be rebuilt, or "irreparable," in which case the vehicle is "parts only" and never able to be roadworthy.

Over 50,000 motor vehicles that have been reported stolen remain unrecovered, and the rate of auto theft has increased by 79 percent in the last 12 years. Branding of registration documents discourages vehicle registration fraud and theft activities and provides consumers with the information they need about a used vehicle's history.

Ontario has over 400 collision repair facilities that are licensed to inspect "salvage" branded vehicles once repaired. If the vehicle successfully passes this structural integrity inspection, the vehicle's registration brand is changed to "rebuilt." This is a permanent brand and can never be removed. The new legislation is expected to be "permissive' legislation that will allow the Ministry to introduce a mandatory branding program implementation date, with other modifications at a later date without having to receive legislative approval again.

The collision repair and auto refinish industry has been a major partner with the Ministry in the introduction of the Stolen and Salvage Vehicle program in 1998 and again today, and supports mandatory branding. It is anticipated that used parts will become more readily available and cheaper. Collision repair shops, that were not fixing many repairable vehicles because of high salvage prices, caused by fraud and theft of Vehicle Identification Numbers (VINs), will probably begin repairing those cars. Many shops have experienced dealing with consumers who have purchased a collision damaged written-off vehicle, some with structural damage, who were unaware of the vehicle's history.

By removing the incentives for fraud in obscuring a VIN history, the salvage marketplace will now be better able to adjust pricing to a fair market value for damaged vehicles.

As reported by Ontario's Collision Industry Action Group (CIAG)

ONTARIO SHOP ASSOCIATIONS SHOW NEED FOR PAINT PRICE INCREASES

May 2000

With increased costs for refinish paint being passed on to autobody repair shops, coupled with tighter environmental controls on their use and disposal, three southern Ontario autobody associations have issued a release calling for a $24 per paint refinish hour rate for its member shops.

The Hamilton District Autobody Repair Association (HARA), the Peel Vehicle Repair Association (PVRA) and the Toronto Collision Repair Society (TCRS) say they have announced the $24 recommended rate, after unsuccessfully trying to get a Canadian materials estimating guide designed and printed for the country.

According to John Norris, executive director of HARA, "A (third-party produced) materials and paint pricing guide for this country, similar to those guides well used and respected in New York, California and elsewhere, would be one of the answers to properly invoicing customers and insurers.

"Despite requests to the data providers in Canada," he continues, "we have no certainty that the guide will be forthcoming, and the increasing costs that coatings firms are passing on to the shops is creating an unfair situation for shops and their customers."

Use and acceptance of low emission paint product in Canada, in concert with higher efficiency spray guns, has dramatically reduced paint sales volumes by refinishes manufacturers, says a news release from the three associations. "In 1985, 32 million litres of auto refinish paint were sold in Canada. By 1992, volume was down to 18 million litres and some estimates are that paint sales in Canada will plummet to below nine million litres this year. Coupled with consolidation of a number of paint manufacturers, increasing raw material costs, upward pressures on U.S. exchange rates, and (with) a diminishing marketplace, paint prices are going up significantly."

The release further states that paint companies, supplying over 92 per cent of the Ontario marketplace, have announced price increases of 4.5-7 per cent at some point this year.

Mitchell International, the release continues, has announced that from 1989 to 1996, the cost of paint materials has increased "by 62 per cent while payments for those materials increased by only 13 per cent.

"Other provinces in Canada have recognized the problem, with Manitoba's paint reimbursementcharge-out rate being raised to $24.02 per hour, Saskatchewan's at $24.45 and British Columbia raised their charge-out rate for this year to $24.73 per hour."

With all this in mind, the three associations recommended that paint charge-out rates by their member shops be raised to $24 per refinish hour on June 1st, "to allow information providers data systems and insurance company claims departments time to work with the new prices.

"Our fear is that shops, faced with losing money because some insurers would pay them less than the costs of their paint, will attempt to recover those losses improperly elsewhere in the invoicing--called cost shifting--or not properly handle their environmental responsibility for the application and disposal of paints in order to cut their losses," Norris explained. "We hope that these new prices will continue to encourage shops to operate legally and be environmentally friendly."

The associations made it clear that they are only recommending the rate increase, and that shops are under no obligation to charge these prices at their own particular facility.

HARA is also providing a free backgrounder package to shop members, as well as insurance, government agencies and the media. The backgrounder contains pricing comparisons, non-VOC controlled and VOC controlled jurisdiction paint pricing levels, and paint price increase data from 1988 to present, increase pricing announcement documents from paint companies, and sample descriptions of Material Estimating Guides. Copies of the national standards and guidelines for paint content and comparisons from other provinces and jurisdictions are also included.

For the free package, call HARA at (905) 662-9499 or 1-800-318-DENT.

Self-Management Package Goes to Government

April 2000

The Collision Industry Standards Council of Ontario (CISCO) have submitted a self-management and shop accreditation recommendation package to the government.

Ontario Ministry of Finance officials received the package last week, finalizing two years of industry consultations and work, and will be commenting to the industry soon.

CISCO is a non-profit corporation comprised of representatives of 14 collision repair trade associations in Ontario and is mandated to design a self-management program for the industry. CISCO would accredit shops in Ontario, through a licensing process. Only shops that meet minimum standards in licensing, legal compliance and equipment standards can be accredited. A Code of Ethics for shops and a Customer Bill of Rights are proposed.

CISCO has held a number of town hall meetings across the province to seek input and provide information. A number of local trade associations have sponsored information meetings to allow their members to be updated and offer any suggestions.

Alex Szabo, President of CISCO's Board of Directors, says, "We are all very excited to finally address issues such as substandard repairs, unfair competition and an uneven playing field, and to be able to provide uniform rules of conduct and enforcement across Ontario.

In the past, shop owners, who have invested their future in the businesses they own, have been very frustrated by not having a say in the direction of their industry. We will finally have the opportunity to participate in shaping our vision of the future."

Tony Nigro , President of the Hamilton District Autobody Repair Association, believes "that a set of minimum standards and the improvements in customer service, that are included in the package recommendations will add more credibility to the industry. Once the program is announced, all shops should look at this opportunity to better their business and improve their image."

HARA's President Meets with Ontario Premier

Issues discussed included lack of qualified trades people

February 16, 2000

As Ontario Premier Mike Harris started on a three day tour of Ontario, he had a restaurant style meeting with business leaders in Hamilton, Ontario on February 9.

The two hour meeting was an opportunity for small business to make their case with the Premier and provide a grass-roots input for the Premier to better understand the people and businesses that are the driving force of the Ontario economy.

Tony Nigro, owner of Wentworth Collision and the President of the Board of Directors of the Hamilton District Autobody Repair Association (HARA), the largest local collision repair and auto refinish trade association in Canada was one of the six people who had a coffee with the Premier.

Tony let the Premier know that there was a serious lack of skilled people entering the trade and felt that much of the problem was the failure of the local school boards to authorize any auto body classes in the area. The Premier was very receptive to promoting skilled trades like auto body at the secondary school level and said that his caucus was eager to make sure that skilled trades training is stressed prior to entering the workforce.

HARA was the first organization in Ontario to co-operate with the province in a early model of an auto body program that offered apprenticeship contract credits for co-op style placements and work at local collision repair facilities. HARA co-sponsors auto body apprenticeship programs for students at Mohawk College and Niagara College and is the only winner of the Region's Skills Development award for two consecutive years. HARA is also involved in presentations at local shopping malls to acquaint secondary school students and their parents to the fact that an auto body skilled trade is a good job with a great future.

Persons interested in becoming an auto body and collision damage apprentice in Ontario can call HARA at 1-800-318-DENT for more information.