Automotive Recyclers Association ARA
Transcription
Automotive Recyclers Association ARA
Automotive Recycling ™ March-April 2012 Official Publication of the Automotive Recyclers Association • Real Hazards Require a Real Plan of Action • How Insurance is Impacted by Safety – or Lack Thereof • Understanding OSHA • Forklift Factor • Airbags and HazMat • Certified for Safety: A Clear Advantage Automotive Recycling ™ March-April 2012 | Volume 32 Number 2 Co lu m n s President’s Comments Editor’s Notes International Auto Recycling Final Thoughts | 4 | 6 | 61 | 66 FOCUS ON WORKPLACE SAFETY The Big Lie 26 Warning: Reading this could make you mad. But, calling you out on your safety program, or lack thereof, could save a life. Literally. By John Gilstrap Clear Views 33 Departments At a Glance | 7 CertaPart/CrashboxxTM ARA Action Insure This Marketing 101 Lessons Learned That’s My Opinion Advice Counts Sales Call Net Profits Green Scene LARA Certified News Capitol Connection Crossword Puzzle Industry Calendar Advertiser’s Index The bottom line of a vibrant safety program is to not only saves lives, but also money – both clear reasons to make it a priority. By Michelle Keadle-Taylor | | | | | | | | | | | | | | | 8 10 12 14 16 18 19 20 22 23 58 63 64 65 65 All About OSHA 38 OSHA inspections – A fact of life for automotive recycling facilities. By Betsy Beckwith Robertson’s Auto Salvage, an ARA Certified Auto Recycler in Wareham, MA, puts safety first for employees like Jason Smith, seen above. Getting a Lift 43 Forklift operation is one high risk task that should not be left to untrained amateurs. By Michelle Keadle-Taylor Compliant Pro 46 If your plan neglects airbags, you fall short of meeting compliance mandates. ARAPro™, a product of ARA Product Services LLC, can help members meet federal regulations. By Michelle Keadle-Taylor Safety 101 49 ARA C.A.R. certification offers an advantage to laying the foundation for a powerful safety program. By Sue Schauls FEATURES Cover Photography by iStockphoto.com ARA SCHOLARSHIPS ARA Scholarship Foundation Recipients 53 Academic Year 2011-2012. By Michelle Keadle-Taylor www.facebook.com/ AutomotiveRecycling SPOTLIGHT ON EXCELLENCE Peacock Auto Salvage 56 By Michelle Keadle-Taylor Automotive Recyclers Association 9113 Church Street Manassas, VA 20110-5456 USA (571) 208-0428 / (888) 385-1005 Fax (571) 208-0430 / www.a-r-a.org March-April 2012 | Automotive Recycling 3 President’s Comments By Randy Reitman, ARA President PReSIDenT Randy Reitman Reitman Auto Parts Melbourne, KY randy@reitmanautoparts.com FIRST VICe PReSIDenT ARA is on the Ball ere in Kentucky it hasn’t felt like winter yet – we’ve had many 40 and 50 degree Hdays. I am still waiting for snow, but if it doesn’t come, I sure can do without it. Snow or no snow, the first couple of months have been busy ones for ARA. CEO Michael Wilson traveled to California to attend the Collision Industry Conference (CIC), where he spoke on behalf of ARA regarding collision standards. ARA recently issued several press releases directed at educating the industry, including one titled “Automotive Recyclers Association Urges Collision Repair Stakeholders to Recognize the Genuine Value, Safety and Benefits of All Repair Part Options.” This can be read at www.a-r-a.org, under the news tab. It’s that time of year, once again, for the 2012 Hill Day/Mid-Year Business Development Conference. The conference will be held March 14 to 16 at the Hyatt Regency Washington on Capitol Hill in Washington, DC. The March 15 luncheon speaker addressing the group is Senator Rand Paul (KY-R). We have also invited Senior Staff from the U.S. Chamber of Commerce to discuss the upcoming 2012 elections and what the results could mean for our industry. As always, each attendee meets with their respective state’s representatives to discuss issues, including the NMVTIS program. Most of the ARA committees meet during the business portion of the program. The E-Commerce Committee will finalize the Standards and Codes on all the parts that we sell. This has been a work-in-progress for the committee. This meeting will complete the project. Hats off to Greg Beagell, Chairman, and Ginny Whelan for her invaluable input and assistance. It is important that as many auto recyclers as possible attend this event in order to make the greatest impact on the Hill. Register today by visiting the Calendar page on ARA’s Website. The ARA Educational Foundation is proud to partner with the FIRST® Robotics Competition, which advances and inspires young people to focus on science, technology, and engineering. The ARA membership and the automotive recycling community stepped up to this rare opportunity to advance an understanding of the automotive recycling industry and green recycled parts to these students who will likely be the future automotive engineers who can design a vehicle with an eye towards recycling. Every FIRST® Robotics Competition team received a kit with a list of items they should use to build their project (see January-February Automotive Recycling, p. 46). ARA members from more than 40 states have enrolled their company to donate quality green recycled electric door, seat and wiper motors to FIRST® teams. This facilitates opportunities for mentoring and relationships with the next generation of engineers. ARA looks forward to helping FIRST® teams succeed in their competition and hopes to continue with annual participation. Call the ARA office to enroll your company. I’m extremely proud to announce that the ARA membership has surpassed 1,200 members. Remember, numbers do count in getting things done, so let’s continue to sign up new members by inviting your area colleagues to join. As I have said in the past, “time flies when you’re having fun.” The good news is: you’re the pilot! Randy Reitman ARA President 4 Automotive Recycling | March-April 2012 Officers Chris Wright Capitol Auto Parts Thomasville, GA chris@capitalautoparts.com S eCO n D V I C e P R e S I D e n T/ T R e A S U R e R Ed MacDonald Maritime Auto Salvage, Ltd. Truro, NS Canada edmacd@maritimeauto.com S eC R e TA Ry Ricky Young Young’s Auto Center & Salvage/Car Crushers Benson, NC ricky@youngsautocenter.com I M M e D I AT e PA S T P R e S I D e n T Doug Reinert Chuck’s Auto Salvage, Inc. Douglassville, PA dougchucks@aim.com ARA Staff & Contractors P U B L I S H e R /C H I e F e X eC U T I V e O F F I C e R Michael E. Wilson michael@a-r-a.org D I R eC TO R , M e M B e R S e RV I C e S Kelly Badillo kelly@a-r-a.org D I R eC TO R , G OV e R n M e n T A F FA I R S Elizabeth Vermette elizabeth@a-r-a.org MeeTInG & eXPOSITIOn Kim Glasscock kim@a-r-a.org AU TO M OT I V e R eC yC L I n G e D I TO R I A L , A DV e RT I S I n G , D e S I G n & P RO D U C T I O n Caryn Smith Suko Creative Communications ARAEditor@comcast.net For advertising information or to submit article ideas or member news, e-mail Caryn Smith at ARAEditor@comcast.net Or call (239) 225-6137 www.a-r-a.org AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the Automotive Recyclers Association, 9113 Church Street, Manassas, VA 201105456 USA, (571) 208-0428 / (888) 385-1005, Fax: (571) 208-0430, Internet: www.a-r-a.org. Periodicals postage at Manassas, VA, and additional mailing offices. Additional member subscription are $15/year. Non-member subscriptions are $40/year U.S. Non-U.S. mailing address subscriptions are USD$55/year surface mail or USD$85/year airmail. $20 libraries and non-profits. Copyright © 2012 ARA. All rights reserved. Materials may not be reproduced in any form without written permission from the publisher. Statements of fact and opinion are the responsibility of the authors alone and do not necessarily imply any opinion on the part of the officers, directors, staff, or the members of the Automotive Recyclers Association. Postmaster: Send change of address to Automotive Recycling magazine, 9113 Church Street, Manassas, VA 20110-5456 USA. editor’s notes By Caryn Smith ARAEditor@comcast.net Get Serious About Safety ust as I was preparing this issue on workplace safety, I received a Salvage Yard Google Alert that reported a very serious automotive recycling workplace accident, and the impact of the incident upon the business and its workforce. With the alert’s headline saying, “Occupational Health and Safety Investigating,” I feel the importance of this topic can never be overemphasized. Situations like this serve as a reminder to all auto recycling businesses that safety protocol is of utmost importance. You must operate your business with a complete safety protocol to reduce the likelihood of workplace injuries. Empower your employees with a comprehensive safety protocol. Review it with your staff often as if their lives depend on it because, as we all know, it does. J 6 Automotive Recycling | March-April 2012 ARA offers tools to help you design a successful safety program. One bonus to being a Certified Automotive Recycler (C.A.R.) is that you receive a safety guide as part of your certification. The guesswork is removed; implementing the recommendations lays the groundwork for a strong foundation to your safety protocol. ARA President Randy Reitman hopes to double enrollment in ARA’s certification programs, namely C.A.R. and Gold Seal, for good reason. Certification sets you apart from facilities who might operate at sub-par standards and signals to all that you have high environmental and safety standards. On page 49, we provide an overview of the recommended C.A.R. safety guidelines. The ARA Educational Foundation’s ARA University (www.arauniversity.org) just announced that seven new OSHA safety courses were added, for a total of 22 courses that complete the OSHA safety training module. ARA members are encouraged to enroll in ARAU to take advantage of this comprehensive safety training, and more! C.A.R. and Gold Seal members receive a discount to enroll, just one more reason to get certified. ARA also announced in late February the formulation of a Safety Committee. ARA CEO Michael Wilson outlines the reasons that this committee is vital in his column on page 66 – a must-read. If I haven’t inspired you to think safety, the article on page 26 by John Gilstrap, Director of Safety for the Institute of Scrap Recycling Industries, just might. He hits all the important points, head on. ■ At a Glance A S S O C I AT e M e M B e R By Caryn Smith Crashboxx™: Specializing in Intelligent Vehicle Tools he partners at Crashboxx™, based in Fort Collins, Colorado, have specialized knowledge in vehicle design and safety, which provides inspiration for the company’s offerings. Their deep technical and engineering expertise was gained through decades of experience at GM, Ford, and TRW Automotive. Two of their key products can assist auto recyclers in their daily operations. T CertaPart START Tool CertaPart START Tools are designed to help sell recycled radios at premium prices and reduce the number of returns. “Every recycler will need one of these. We are pretty excited,” Peter Byrne, President, comments. “When a recycler extracts a radio from a vehicle, chances are it will be locked because it is tied to the Vehicle Identification Number (VIN). Our CertaPart Tool removes the VIN from the radio, and restores the part back to its original factory default setting.” The first of a planned series of VIN reset tools instruments, the Start GM V1.1 model, roughly the size of a shoebox, will remove the VIN from most GM radios (i.e., radio modules with CD, DVD, and navigation functions) from GM Models 2006 through 2011 exclusively. The team is working on a box, compatible with Ford vehicles. “When an auto recycler sends a current generation radio from a dismantled car to a body shop, it probably will not operate because it still retains the VIN of the original car in its internal memory,” Byrne explains. “The typical practice for a shop, after installing the radio, is to drive the car to a GM dealer and have them remove the old VIN. It can cost the shop up to $150 for this service, so it is expensive, time consuming, and inconvenient.” Enter the Start GM V1.1. “After removing the radio from a crashed car, the radio is connected to the Start Tool which is plugged into a standard AC outlet. The radio will light up, a message will appear on the display, and it then performs a cycle on the memory. Once the VIN has been flushed from memory, the recycler can sell the radio for a premium price, as unlocked. It saves the body shop money and time,” says Byrne. Upon installation, the vehicle’s control module communicates with the unlocked radio, it is paired to the vehicle, and the radio assumes the new VIN and will then be fully operational. Byrne says, “Ultimately, this reduces the return-ratio. A recycler using the tool in his operations can charge a premium for an unlocked radio. We estimate most recyclers will break even on the tool after selling 13 radios or so, depending on what premium you charge, and after that the added premium goes straight to the bottom line.” The GM V1.1 retails at $1,500, but ARA members enjoy a special price of $1,299. CrashboxxTM How would you like to know, not only where your drivers are, but also see, in real-time, how they are driving? Crashboxx has developed a black box system that can capture your vehicle’s location as well as how the car is being operated. The device, which plugs into the car’s OBD II port, can tell the owner where the vehicle is, if it is being driven aggressively, and even alert you in the event of a crash. “For fleet operators, we offer real-time monitoring of how their vehicles are being handled. Our web-based software allows a drivers’ performance to be accessed at any time. Crashboxx scores drivers based on certain criteria, rating their driving performance. While a GPS gives you location, our product is a safety and liability management tool designed to help you manage the risk of operating company owned fleets,” says Byrne. “We take the GPS to the next level.” Insurers are increasingly aware of this technology known generally as “insurance telematics” or “usage based insurance, or UBI.” Most major carriers here in the U.S., and internationally, are actively studying how to implement a UBI program, or have already begun doing so. “Among insurers who have already adopted UBI, premium discounts are possible, up to 50% in some cases,” says Byrne, “so with a fleet of safe drivers, your savings can really add up. While insurance telematics is fairly novel today, in five years this technology will be accepted as the norm.” How It Works The auto recycler installs the device by plugging it into the vehicle’s the vehicle’s OBD II port, usually near the steering column. Driving styles are constantly recorded, and when the vehicle is operated outside pre-established limits – e.g. harsh acceleration away from traffic lights, speed, heavy breaking, etc. – these are recorded, and tallied into the driver’s overall daily score. Data is sent from the black box over the cell phone system to the Crashboxx servers, and accessed through easy-to-use web-based software. A driver’s performance can be tracked by the hour, day, week, month or year. The cost for this monitoring is $18 per month, per vehicle, and the device has a one-time cost of $150 per unit. Adding fleet tracking management, which plots route drivers on a map, helps to manage fuel, driver location, etc., is an additional $18 per month per vehicle. For information, contact Peter Byrne, President, Crashboxx™ (970) 367-7383 or e-mail Info@certapart.com or Info@crash boxx.com, or visit certapart.com and crashboxx.com. ■ Caryn Smith is the editor of Automotive Recycling magazine. March-April 2012 | Automotive Recycling 7 ARA Action Latest News and Reports from ARA ARA Urges West Virginia Attorney General to Correct the Record RA sent a formal letter of complaint to West Virginia Attorney General Darrell McGraw urging him to refrain from using the derogatory and misleading term “junkyard parts” when referring to recycled/salvaged automobile parts. In a December 2011 press release announcing legal action against Liberty Mutual Insurance, the Attorney General’s office referred to recycled/salvage parts as “junkyard parts” and implied that recycled/salvaged parts are inferior to new OE parts. In the press release the Attorney General says: “My Office will always work to insure that West Virginians receive safe, high quality, competent, and lawful repairs to their vehicles.” The A Attorney General’s derogatory and misleading characterization of recycled/salvaged automobile parts does a disservice to consumers in West Virginia. Restricting legitimate choices for vehicle repair does not protect West Virginia consumers. Rather, restricting access to recycled/ salvaged parts creates a monopolistic market, inflating the cost of vehicle repair and increasing insurance premiums. “We believe that this statement infers that salvaged, used and/or reconditioned parts are somehow unsafe and inferior to new OE parts,” says ARA CEO Michael E. Wilson. “This is simply false. Recycled/salvaged automobile parts are not ‘junkyard parts’ nor are they classified as such under West Virginia statute. We have asked the Attorney General to clarify this statement,” said Wilson. ARA Affirms FTC Recognition of “Recycled” Claims ARA Comments on Municipal Solid Waste Characterization Report n response to continued attacks by the collision repair industry on green recycled parts, ARA issued a press release affirming the Federal Trade Commission’s (FTC) recognition of the term “recycled” to describe the commerce of used parts. In the release, ARA cities the FTC’s Environmental Marketing or Green Guides that consider consumer perceptions about products and determined that “recycled” is acceptable in promoting used automotive parts utilization. The revisions, published in the Federal Register on May, 1, 1998, state, with regard to the used automotive parts market, that the “unqualified use of the word ‘recycled’” is not deceptive. PA sought input from stakeholders on the efficacy and scope of the Municipal Solid Waste Characterization report as part of the nation’s broader discussion about sustainable materials management. ARA responded by reaffirming that automotive recyclers are not stakeholders in this solid waste measurement initiative for the simple reason that automotive recyclers do not handle solid I ARA Reviewing new Used Oil Rule ate last year, the EPA published a proposed rule that specifies that all existing boilers subject to the tune-up requirement would have two years (by March 2013) to demonstrate compliance. Initially, EPA had planned to require initial compliance by March 2012. If EPA has not taken final action on the initial compliance date for tune-ups prior to the date for initial compliance, the Agency will consider staying the effectiveness of the rule for 90 days so that EPA can complete consideration. Boilers used by automotive recyclers to burn used oil for fuel are subject to this tune-up requirement. L 8 Automotive Recycling | March-April 2012 e ARA answered for the record a definitive “no” because automotive recyclers do not discard used material, rather it is recycled and reused. waste. However, ARA felt compelled to respond because of language in the August 2, 2011 Federal Register notice where EPA queries whether “automotive waste” should be included in the MSW Characterization Report. ARA answered for the record a definitive “no” because automotive recyclers do not discard used material, rather it is recycled and reused. ARA further stated that indeed, automotive used material never even enters into the waste stream that EPA is measuring in this report. ■ Insure This By Wells Fargo Benefits of a Written Safety Program n light of the intrinsic hazards prevalent in the automotive dismantling and recycling industry, it is becoming increasingly important for each and every recycler to provide a safe and healthy work environment for all employees. It is incumbent on every recycling firm to also provide appropriate equipment, safeguards, personal protection, training, and administrative support to protect employee safety and health. Employees should be trained to work safely and must be required to comply with all safety rules and standards. The ultimate purpose of such an objective is to reduce employee injuries and illnesses by identifying, analyzing, and controlling hazards. The most effective method of achieving this objective is a formal written safety program. By having a written program, it becomes much easier to investigate all accidents (and near misses!) and to develop the necessary measures to correct them. By developing a written safety program, you will be able to create and enforce mandatory safe work practices while providing the equipment and safeguards necessary for employees to work safely. A written “program” can be easily communicated to your employees so they can participate in and take an active role in the overall health and safety of the workplace. A joint management/employee health and safety committee can and should be formed to provide assistance in accident investigation, hazard analysis and hazard communication. Such a safety and health committee should meet on a regular basis. The immediate goals of your safety program are to: A. Reduce annual lost workday incident rates continually below the level of the previous year. B. Bring your facilities into compliance with all federal and state occupational safety and health regulations. iStockphoto.com/DNY59 I 10 Automotive Recycling | March-April 2012 C. Implement continuing effective health and safety programs to provide employees with a safe and healthy workplace. D. Actively encourage employee involvement in these health and safety programs. One of the most important elements of the workplace safety program is having an effective safety committee to institute and monitor the safety program. The safety committee should be comprised of both management representatives and hourly employees. The safety committee should include managers, a safety coordinator, maintenance personnel, and hourly employees from different areas of the operation. The objectives of the safety committee should be as follows: • Members of the safety committee must maintain safe work practices and a positive attitude toward safety, to set a good example. • Any loss control inspections done by insurers or state/federal safety inspectors (OSHA) should be reviewed by the safety committee for input and recommendations. Unsafe acts and conditions identified should be discussed and corrections made immediately so these problems do not contribute to further accidents and injuries. • Safety committee members must lead the way in informing management and/ or supervisors of workplace hazards at all times. This should be done formally in writing as well as immediate discussions. • The committee should review all accident investigation reports to ensure proper corrective action is taken to prevent recurrence of a similar accident. • The committee should hold regular meetings, and the committee chair should have the following duties: a. Set the dates for the committee meetings; b. Document the committee activities; c. Review safety/loss control inspections; d. Gather accident reports prior to meetings; e. Inform management of the committee activities; f. Develop methods of selecting committee members; g. Provide assignments to the members; h. Keep meetings on track to ensure problems are solved; and, i. Make a concentrated effort to resolve/correct safety concerns raised by fellow employees. To ensure safe work practices, management must enforce them and make rules that can be followed consistently among all employees, re-train employees if initial training appears to be ineffective, and enforce and document a progressive disciplinary program. We will continue to outline the safety program in future issues, reviewing the various topics a safety program should address. ■ For more information on how Wells Fargo Insurance Services can benefit your business, contact Bill Velin at 800-328-6311, ext. 3039, direct 952-830-3039, or by e-mail bill.velin @wellsfargo.com. For more information, visit https://secure.mybenergy.com/login/ processlogin.asp?username=arainsurance&password=ara. Marketing 101 By Mike French mike@mikefrench.com Develop Customer Contact Systems recently called to make an appointment with my physician for a routine checkup required by an insurance matter. The receptionist on the line asked me when I had last been in. I couldn’t remember. “Well,” she said, “I can’t find you in the system, so it must have been over five years” (it was), “so you are no longer one of his patients,” she said. “And, unfortunately, the doctor is no longer taking new patients at this time.” My favorite doctor was no longer my doctor! I was a bit sad because I really did like my now-former physician. But, this incident reminded me once more that the reason people usually get dropped through the cracks is neglect. It’s a well established fact that you must continually work to stay in contact with your customers in order to keep their relationship with you strong and healthy and to avoid client atrophy. Maintaining contact does take a lot of time and work to keep your business on top. The good news is that you can dramatically reduce the amount of work needed by putting your customer contacting efforts into automated “customer personal relationship programs” (CPR). A good system should help you organize tasks that need to be repeated on a consistent basis. The system should enable you to put any job or marketing project into logical series of repeatable steps and allow you to put recurring jobs on automatic pilot. Most successful companies and all franchises put everything into systems. Food places, banks, drug stores, clothing stores, and even green recycled parts businesses, put processes into systems. The E-Myth, by Michael Gerber, a must12 Automotive Recycling | March-April 2012 iStockphoto.com/Alex Slobodkin I read, will give you some great ideas and tips to speed you along in your quest to put systems in place. By implementing these ideas, you can develop good CPR systems and put them to work within your company. Begin by thinking through every step of each contacting method you presently use. One CPR method example might be the sending out of thank-you notes to customers who have made purchases from you on large ticket items. Here’s how you’d put it into a system. Preparation: 1. Prepare some nice thank-you notes and matching envelopes with your business name and address printed on them. Leave a little space to write a short note and to add a signature there if you wish. 2. Put some kind of method into place to capture the names and addresses of your customers, as well as what they have purchased, along with the name of the person who sold them the product, if you want the thank you notes to come from sales staff. Application: 1. At the end of each day someone at your office writes the name of each customer onto an envelope and affixes a first class stamp. 2. The salesman’s or owner’s business card is placed into the business card slots on the thank-you note, and the cards are given to the salesman or owner to sign. 3. The card is sealed and mailed. Another CPR method is to use an email system that mails to a list, such as Constant Contact, to send purchasing customers an update on your product offerings or a special discount deal. These personalized e-mails are another way to keep communication with your best clients. Whatever way you choose, in this era of marketing, relationship building earns customers. It’s that simple. ■ Mike French, President of Mike French & Company, Inc., can be reached toll free at 800238-3934 or visit his company’s website at www.MikeFrench.com. Lessons Learned By Ginny Whelan ginny@araeducation.com Bring Safety Back “OSHA Continues to Target Scrap Metal Recycling and Used Motor Vehicle Parts Industries for Enforcement” U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) recently activated its Local Emphasis Programs (LEP) in some areas of the country to help employees in the scrap metal recycling/used motor vehicle parts industry who are being exposed to “serious safety and health hazards” on a daily basis. According to OSHA, LEPs are enforcement strategies designed and implemented at the regional office and or area office levels and are intended to address hazards or industries that pose a particular risk to workers in the office’s jurisdiction. – ARA e-Newsletter Jan. 30, 2012 “Scrap Yard Worker’s injury leads to $63,000 penalty.” “Employers have a responsibility to ensure workers have safe working environments. Failing to train employees in safety related work practices is unacceptable,” says Deborah Zubity, OSHA area director. The company cited had twelve citations from failing to install rear view mirrors on both sides of the forklift, failure to document periodic inspections, failure to provide training on safe operation of the forklift, failure to provide protective equipment for the employee … (the list went on). – Recycling Today. onnecting safety intelligence to your business combines best-in-class training, assessment, and improved results through superior employee decisions. Motivating employees to become safety ambassadors not only helps enhance your company’s safety environment, but also strengthens the bond between employer and employee. C they find all sorts of excuses to avoid the training. Training is also set aside because of urgent work demands, whether it is inventory back log of vehicles, answering the phones, making more salvage purchases, dismantling more cars and the list goes on. When employees fail to complete the training, everyone loses. An employer Motivating employees to become safety ambassadors helps enhance your company’s safety environment, and strengthens the bond between employer and employee. In 2011, I developed a safety program for a recycling company called, “I Got Your Back.” The introduction to the employee training was a YouTube video, Bringing Safety Back, a spoof of a popular Justin Timberlake hip hop song. It made employees have a good laugh and think of safety in a fun way. Employees sometimes claim that safety training is boring and unnecessary, so 14 Automotive Recycling | March-April 2012 who has set the time and spent the funds for safety training does not ultimately want to waste their employees’ time, but help them do their best. Team effort The best way to increase participation is to change the outcome desired. Encouraging employees to participate in a safety program is one thing, encourag- ing them to maintain a company culture of safety is profound. Helping them see the bigger picture increases buy-in. You and your employees should partner together to ensure compliance, performance management and safety program adoption, with game-changer rewards and incentive programs for the employees. It starts with housekeeping and a safety hot list of employee responsibilities. For automotive recyclers, the hot list must include: company safety rules, first aid, fire prevention, hazardous material handling, personal protection equipment, back injury protection, facility electrical safety, tools and equipment safety, material handling, equipment safety, driver safety, and cutting and torch safety. “Working Heroes” is a safety incentive program that I developed to build employee buy-in to the company safety program. This spotlights the individual employee when they perform their job safely. E-post cards are used to share employee safety tips. An employee tip that is implemented is awarded with a $100 Best Buy gift card (Best Buy has a corporate gift card discount program). Resources for Safety The Automotive Recyclers Association (ARA) also provides quality professional safety training resources. ARA and Wells Fargo Insurance Services recently published an Employee Safety Booklet. This pocket-size quick reference guide is a great way to provide each employee an easy read reference in keeping safe on the job and is a great training outline. Copies are available from ARA. Furthermore, upon completion of enrollment into the ARA Certified Automotive Recycler (C.A.R.) program, participants are provided with a comprehensive safety company manual, revised in 2011. This C.A.R. certification benefit, available in hard copy or electronic PDF, clearly explains C.A.R., Occupational Safety and Health Administration (OSHA), and general employee training standards. The ARA University(www.arauniversity. org) offers 14 courses on safety and compliance that include: Back Safety, Decision Driving, Truck, Employee Safety Orientation, Eye Safety, Fire Safety, First Aid, Forklift Safety, Material Handling, Behavioral Driving, Personal Protection Equipment, Sexual Harassment Understanding, Preventing Slips, Trips and Falls, and Small Spill Protection. In 2011, ARA and Environmental Compliance for Auto Recyclers (www. ecarcenter.org) published a comprehensive Hybrid Vehicle Dismantling Guide. This guide has over 400 pages of valuable safety information for any recyclers who are dismantling or will dismantle Hybrid and Electric Vehicles. The Guide is now ready for wide distribution to automotive recyclers in either book form or on CD for $99 each, 22 plus shipping and handling. Go to www. ecarcenter.org/HybridManualForm.pdf or to page 17 of this issue. Your company’s safety training is a mirror of the company and its employees. There must be a determined and unified effort to meet safety goals, just as you would meet sales goals. Efforts must be fully documented to protect the company from future liability, not for disciplinary action or promotions. Find innovative ways to make safety meaningful, get employee feedback, and improve performance. Safety requires ongoing training, self assessments, and a lot of coaching from management. It takes time to get your employees on board with a safety program. Engaging several of your most influential employees first may speed up the process. ■ Ginny Whelan, an ARA Past President, is Managing Director of the ARA Educational Foundation and founder of the ARA University, the leading Web-based training resource in auto recycling education. Visit www.arauniversity.org. (8 more just added!) March-April 2012 | Automotive Recycling 15 That’s My Opinion By Ron Sturgeon rons@rdsinvestments.com The Right Bank for you oday, as a business owner, you have a wide range of banks to choose from. Doing some online research before making your selection is imperative, because you don’t want to waste time pursuing a bank that’s not right for you. Not only do you need to make sure that you are pursuing a relationship with a bank that understands your business, but also to make certain that you’re dealing with a bank that can meet your financial needs. T One Size Does not Fit All Ron (entrepreneur): I’m a huge advocate of community banks. With big banks, if you can fit in their box, you’re fine. Everyone thinks, well, I have a checking account at my Big Bank, and I financed my car there, so I’m going to go see them about my business loan. But, generally speaking, the underwriting policies at big banks are not going to give you credit for your experience; they’re not going to give you credit for your character. You need to be at a community bank. Greg (banker): You need to have a bank that matches the size of your business and your business philosophy. You simply have to have the bank that matches you. Sometimes, it’s not about scale; it’s about skill. You don’t need a big bank if you’re a little widget manufacturer. Now, if you’re an international widget manufacturer, you might need an international bank. But for most people that’s not the case. Find a bank that is the right size for you. Ron: It’s also important to know the size of the bank, because that could have a lot to do with its appetite for lending. And you want to know what your individual lender’s loan authority is before you make that decision. I used to ask people that straight out. Some people would tell me; others would dance around it. But when a lender tells me his loan authority is $25,000, I know I’m meeting with the wrong person. 16 Automotive Recycling | March-April 2012 Every lender has a choke point. Some lenders can make a loan of up to $300,000 with no problem, but when it gets above that, they start sweating. When it gets above $500,000, they choke. It might be a wonderful loan, but they just have a threshold that they can’t get past. It doesn’t make them bad loan officers. But it does limit your ability to grow. If you happen to be with a loan officer like that, and you need to go beyond his or her choke point, you’re going to have wasted time building a relationship only to find your lender isn’t able to grow with you past this point. You also want to consider the process for loan approval relative to loan authority. All of the banks have different ways of handling this. Some banks layer these amounts, so if you have a loan for $100,000, another officer can make a loan for $100,000 and then a third guy can make a loan for $100,000, so together they can make a $300,000 loan, without board approval. Other banks will give you $100,000 and then once you go past that, it goes to a committee, up to a million dollars. At $1 million it goes to a senior committee, and then at $5 million it goes to the board. The numbers may be different, but you get the picture. Every bank has its own procedures, so you’ll need to learn those. Most bankers are willing to tell you the amounts and the processes. Ron: Ideally, you’ll find a loan officer who can work with you. But it’s not the amount of the loan that’s important; it’s the size of the debt. Say you get with an officer and his authority is $100,000, and you borrow that amount. Then the next day you need to borrow $5,000. Well, now you’re in big trouble because you have to go to the next concurrence officer or go through the next level of approval. So you have to know going into it how much authority the banker has. I can recall an instance where I owed $992,000, and wanted to finance a forklift costing $25,000. Because I passed the threshold of $1,000,000, a whole new underwriting process kicked in for all my credit, not just the forklift loan. Greg: Those numbers have changed drastically. At one point, I had a $2 million loan limit. But those were different times. What I would say is that they need to have a loan officer with at least a $100,000 loan limit. Ron: This is one of those cases, I guess, where you don’t necessarily know what the right number is, but you definitely know when it’s a wrong number. And $25,000 would be the wrong number because that indicates that the loan officer is possibly brand new, and that the bank doesn’t have a lot of confidence in his or her ability yet. Cheating On your Banker Ron: Having a good bank that you can rely on is important for every business and businessperson. It’s important to create an ongoing, solid relationship with that lender, but it’s also important to have a second bank to turn to. A second bank gives customers the option of accessing money that the first bank might not be willing to loan. In today’s banking climate, it’s more important than ever to create relationships with more than one bank. It’s important to note that having a second bank isn’t about being able to shave another quarter of a percentage point off a loan rate; it’s about being able to get what’s best for you and your business. Getting To Yes With Your Banker features perspectives from both the banker and entrepreneur. ■ Since 2001, great ideas to improve your auto recycling business have been found on Ron’s Web site, www.autosalvageconsultant.com, the definitive source for recyclers’ management and training needs. Advice Counts By Jim Counts Jimcounts@wans.net What is Cost of Goods? ost of goods, simply stated, is what it costs us for the goods we sell. The Internal Revenue Service (IRS) has different rules for small and large businesses relative to what is treated as cost of goods sold. The rule for automotive recyclers who do less than $10 million in annual sales allow recyclers to write-off expenses associated with processing inventory, as you incur them. The IRS does not allow you to write off the cost of the inventory in the month you buy it unless you sell all of it in the same month. iStockphoto.com/Talaj C everyone is required to use an “allocation formula” to convert the actual cost of the vehicles to cost of goods sold on our profit and loss. 18 Automotive Recycling | March-April 2012 Under section 263A of the IRS Code, non-manufacturing companies (which includes auto and truck recyclers) with sales over $10 million annually must capitalize various “inventoriable costs.” Inventoriable costs are those associated with purchasing (the buyer), pool fees, towing cost, inventorying the vehicle, predismantling expenses and tagging the parts. If your sales are more than $10 million per year all these costs must be added to inventory and expensed using what the IRS refers to as an “allocation formula.” (An allocation formula is a systematic method of transferring the previous listed costs from inventory to expenses as you sell the inventory. Note: it says AS YOU SELL THE INVENTORY, not when you bought it.) In other words, the real cost of inventory for companies that sell over $10 million is not just the cost of the part. It also includes an allocable amount of other costs (inventoriable costs) associated with getting the parts on the shelf and ready to sell. It seems the key here is the “ready to sell” point in the process. However, we find that a lot of Certified Public Accountants’s like to set up auto recyclers books and inventory write-off procedures as if they did over $10 million, probably because they do work for companies which exceed this threshold. Most recyclers are not affected by section 263A because their sales are less than $10 million per year. Therefore, all expenses except the actual cost of the vehicle may be written off in the month the vehicle is purchased. This also means that pool fees and towing are not part of the cost of the vehicle for most recyclers, any more than the buyer, inventory, or dismantlers payroll would be. Remember: Everyone is required to use an “allocation formula” to convert the actual cost of the vehicles to cost of goods sold on our profit and loss. This applies at all levels of sales volume. The actual cost of vehicles must be written off as the parts sell, not in the month they are purchased. Also, the IRS requires that all parts (including cores and crush) have a cost associated with each sale. Always check with your CPA when developing your inventory write-off procedures or contact us for some suggestions. We actually field a lot of questions from CPAs because of the unique way the industry sells its product. ■ Jim Counts, Counts Consulting, provides organization and financial development for dismantlers. Contact Jim at (817) 238-9991 or visit www.countsconsulting.com. Sales Call By Sam Parker sparker@givemore.com negotiation Guide egotiation is your opportunity to demonstrate your commitment (and your company’s) to a long-term relationship and to maximizing value for both parties (for those who sell to businesses, value is synonymous with returnon-investment). Sales negotiation can be a formal event (at a specific time and date) or it can be an ongoing theme at different points in the sales process. It’s beyond price and includes the entire value proposition. As a professional you’re seeking a mutually beneficial relationship with your prospects and customers (not something that benefits one of you). Practiced and applied, negotiation skills can increase the level of trust and credibility you and your company have with your prospects and customers. The negotiation guide below provides you and your team with a quick overview for your next potential negotiation with a prospect or customer. Use what fits for your particular sales world and toss what doesn’t. And remember … your success depends more on your pre-negotiation preparation than on the negotiation moment(s) itself. Nothing fancy, just the fundamentals ... done well. your negotiation Guide Before negotiating begins: • Avoid negotiating unless you’ve had an opportunity to fully present your value proposition. • Understand the objections raised up to this point in the sales process and identify what your prospect’s or customer’s hot buttons (main points of interest) may be based on these objections. • Be prepared to illustrate how your ery times, follow-up schedules, service period, etc.). • Try to identify agreement on small items to help develop positive momentum – summarize these agreements periodically. • Take notes to demonstrate your commitment to the negotiation and to help you find opportunities to summarize the smaller agreements verbally with the prospect/customer. iStockphoto.com/mattjeacock n offering will be used by them and quantify the value they’ll get. • Be certain you’re working with a person who has the authority to negotiate and make decisions. • Adopt the right negotiating attitude. • Be confident in the value your product or service will return. • Be prepared to be patient (which can lead to higher trust). • Be prepared to work toward a solution that works for everyone (really). • Know in advance at what point the agreement is no longer beneficial to you and your company and be prepared to walk away. During negotiation: • Use open-ended questions to confirm your understanding of their needs. • State your understanding of how the prospect or customer will benefit from your product or service – confirm this is accurate by asking. • Be prepared for tactical responses from prospects and customers – whether it’s the flinch following your price quote or silence – don’t react and instead respond with more questions. • Listen. • Don’t rush to fill pauses – be comfortable with moments of silence. • Be prepared to change the value proposition to support price concessions – support your price integrity by adjusting the overall value (e.g., change deliv- After the negotiation: If agreement is reached ... • Summarize verbally and/or in writing the agreement for all appropriate parties. • Thank the customer/prospect for their time and reinforce the purchase decision (without cliche). • For your next negotiation, review the points that seemed to help move the negotiation process forward – study them, know them, use them. If no agreement is reached… • Sincerely thank the prospect/customer for their time and commitment to the process. • Avoid appearing annoyed or disappointed. • Give the prospect/customer an “out” or an opening for them to come back to you and your company in the future (have this statement prepared). • For your next negotiation, review the points that seemed to prevent the negotiation process from moving forward – study them, know them, and act accordingly. Now go sell something. ■ Sam Parker is a co-founder of JustSell.com – the Web’s resource for sales leaders. He is the author of 212° The Extra Degree (little efforts, big results), Smile & Move (be positive, take action), and SalesTough (8 key fundamentals). He can be reached at (804) 762-4500, ext. 303. March-April 2012 | Automotive Recycling 19 net Profits By Mari Smith mari@marismith.com 12 Tenets of Relationship Marketing effectiveness elationship marketing refers to everything you do to make your prospective and current customers aware of your products and services, position your business in their minds as the obvious choice, and help you to build lifelong, profitable relationships with them. Whereas the traditional marketing approach is transactional (point of sale), relationship marketing is relational. While old-style marketing mostly focuses on sales transactions, the new relationship marketing focuses on working hand-inhand with your prospects and customers to co-create a more meaningful, personalized, and lasting experience. With the vast range of social media tools at our disposal, it’s easier now more than ever to shift your focus to relational marketing. Your customers and prospects iStockphoto.com/Arda Guldogan R Argument for Relationship Marketing o most Automotive Recyclers, this idea of relational marketing may sound a little bit like a lot of work for not much pay off, and a lot like paying someone to play on Facebook and Twitter all day for fun. Well, you may be correct if you look at this transactionally (I want a sale from every posting). But if you are interested in gaining a customer for life after a sale has occurred, read on. Wikipedia says: Relationship marketing differs from other forms of marketing in that it recognizes the longterm value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages. It pays to remember: • The cost of acquisition occurs only at the beginning of a relationship, so the longer the relationship, the lower the amortized cost. • Account maintenance costs decline as a percentage of total costs (or as a percentage of revenue). • Long-term customers tend to be less inclined to switch, and also tend to be less price sensitive. This can result in stable unit sales volume and increases in dollar-sales volume. • Long-term customers may initiate free word of mouth promotions and referrals. • Long-term customers are more likely to purchase ancillary products and high margin supplemental products. • Customers that stay with you tend to be satisfied with the relationship and are less likely to switch to competitors, making it difficult for competitors to enter the market or gain market share. • Regular customers tend to be less expensive to service because they are familiar with the process, require less “education,” and are consistent in their order placement. • Increased customer retention and loyalty makes the employees’ jobs easier and more satisfying. In turn, happy employees feed back into better customer satisfaction in a virtuous circle. T 20 Automotive Recycling | March-April 2012 want to know that you’re listening, that they are important to you, and that you are striving to improve your brand, products, and services as a result of their feedback. You can’t afford to be a one-way broadcast channel. Embrace the conversation or, as my friend Brian Solis says, “engage or die”. He means, it’s those companies who engage with their community that will thrive in the long run. Relationship Marketing Best Practices There are certain hallmarks of companies that have successfully integrated relationship marketing. Listed below are 12 best practices, formed as a quick selfassessment. Check which of the 12 questions apply to your company; the more yes’s you have, the better! My company: ❏ ... conducts regular polls and surveys (surveymonkey.com) of our customer database to ensure we understand the currents challenges and needs of our market. ❏ ... strives to integrate customer feedback as much as possible in order to improve our products and services. ❏ ... understands the power of social media and has active profiles set up on all the popular social sites such as Facebook, Twitter, LinkedIn, and Google+. ❏ ... has effective listening (www. dreamgrow.com/48-free-social-mediamonitoring-tools/) and monitoring (www.socialmedia.biz/2011/01/12/top20-social-media-monitoring-vendors-forbusiness/) systems in place. ❏ ... has a corporate social media policy (http://socialmediatoday.com/davefleet/151761/57-social-media-policyexamples-and-resources) in place that lets staff know what can and cannot be said, what actions can and cannot be taken, and how to handle any negative bio situation. ❏ ... generates warm leads from all you can’t afford to be a one-way broadcast channel. embrace the conversation or, as my friend Brian Solis says, “engage or die.” online and offline marketing efforts on a regular basis. ❏ ... utilizes a reliable customer relationship management strategy (www. socialmediaexaminer.com/what-is-socialcrm/). ❏ ... conducts regular training sessions (www.marketingprofs.com/marketing/ online-seminars) for all members of staff on proper customer relations and social media best practices. ❏ ...stays on the cutting edge by evolving, adapting and integrating new technologies. ❏ ...embraces high-tech but always maintains high-touch by reaching out to our customers, prospects, vendors and partners. ❏ ...has a very high customer satisfaction rate. ❏ ...consistently goes out of our way to let our customers know how much we value them. By studying and integrating each of these 12 best practices, you’ll go a long way towards improving your success through relationship marketing. Your customers will not only like you, but they’ll love you! Companies that do really well with their relationship marketing efforts include Zappos, Starbucks, Virgin America, Southwest Airlines, and Ford. Also, check out Morton’s Steakhouse as Peter Shankman (www.shankman.com) shared on The Greatest Customer Service Story Ever Told, starring Morton’s Steakhouse response to a tweet. It’s a fun story about going above and beyond for your customers. ■ Mari Smith is a passionate social media leader, specializing in relationship marketing and Facebook mastery. She is author of The New Relationship Marketing and coauthor of Facebook Marketing: An Hour A Day. She travels the United States and internationally to deliver keynotes and lead training events. Fast Company describes Mari as “a veritable engine of personal branding, a relationship marketing whiz and the Pied Piper of the Online World.” Dun & Bradstreet Credibility named Mari one of the Top Ten Most Influential Small Business People on Twitter. Connect with Mari at www.marismith.com. March-April 2012 | Automotive Recycling 21 Green Scene By Michael Schmidt and Mike James mjames@jamesenvironmental.com Top Ten OSHA Violations very year, the National Safety Council (NSC) and Occupational Safety and Health Administration (OSHA) partner to reveal OSHA’s top 10 most commonly cited violations. The list tends to feature the same violations year to year. In 2011, fall protection, scaffolding, and HazCom topped the list. The 2011 list is as follows, with the number of violations: 1. Fall Protection (7,139) 2. Scaffolding (7,069) 3. Hazard Communication (6,538) 4. Respiratory Protection (3,944) 5. Lockout/Tagout (3,639) 6. Electrical – wiring methods (3,584) 7. Powered Industrial Trucks (3,432) 8. Ladders (3,244) 9. Electrical – general requirements (2,863) 10. Machine Guarding (2,728) Improving safety measures greatly reduces your chances of getting an OSHA violation, especially hazard communication, respiratory protection, lockout/ tagout, general electrical requirement, and machine guarding, all safety concerns that need to be addressed in auto salvage yards. Here are general guidelines for complying with OSHA regulations in respect to these violations. e Hazard Communication Hazard Communication, called HazCom, ensures that employers and employees know about work hazards and how to protect themselves so that the incidence of illness and injuries due to hazardous chemicals is reduced. To comply, your facility must: identify and list hazardous chemicals in the yard; obtain Material Safety Data Sheets (MSDSs) and labels for each hazardous chemical; implement a written HazCom program, including labeling, MSDSs, employee training, and methods the employer will use to inform employees of the hazards of non-routine tasks, such as spills; and train employees on chemical hazards. 22 Automotive Recycling | March-April 2012 MSDSs for oil, grease, antifreeze, brake fluid, battery acid, gasoline, and even sodium azide in air bag detonators are found on the Internet free of charge. Compile MSDSs in a binder, where employees can easily get to it. Respiratory Protections Emissions from the torching and cutting of metals are hazardous to the human respiratory system. Employees that work in close proximity to the emission sources are exposed to heavy metals, such as hexavalent chromium, lead, cadmium, and aluminum. In most automotive salvage yards a silicon half mask with disposable respirator cartridges would provide adequate protection. OSHA requires that the employer provide respiratory protection to his/her employees. Respirator cartridges should be used according to the manufacturer’s recommendations. Employees wearing respiratory protection must undergo a medical evaluation, training, and fit test. Lockout/Tagout The objective of having a lockout/ tagout is to prevent accidental startup of machines or equipment while a contractor or employee services the machine. For instance, when a crusher is shut down for repairs an authorized employee or group of employees will lock out the disconnect box before any maintenance starts. Tagout is only permitted when the disconnect box is not lockable. The tag must clearly communicate, “DANGER! DO NOT OPERATE!” A successful Lockout/Tagout Program must have a written Energy Control Program and Energy Control Procedures for each piece of equipment. Employees must also be trained on the facility’s Energy Control Program and Procedures. electrical General Requirements The most common shock-related injury is an electrical burn, which usually occurs when an employee touches electrical wiring or equipment that is improperly maintained. Look for tripped circuit breakers or blown fuses; worn or frayed insulation around wires or connections; an excessive amount of cords plugged into a circuit; a conductor that is too small to carry the current; and open junction boxes. Routine inspections and training of employees will help reduce injuries and OSHA violations. Machine Guarding Crushed fingers or hands, amputations, burns, or blindness are just some of the injuries that can occur when machine guards are not in place. Machine guards reduce the chances of injury to you and your employees. Machine guarding should be provided to protect the operator and other employees from rotating parts, flying chips, and sparks. Some of the machines that require machine guarding are guillotine cutters, shears, alligator shears, power presses, and power saws. Machine guards should be designed and constructed to prevent the operator from having any part of his body in the danger zone during machine operations. Implementing a safety program may seem like an impossible task. Start with one of these ten violations and work into other safety areas over time to reduce injuries and OSHA violations, which can range from $700 to $5,000 per day if an OSHA inspector catches you without a Safety Program. Violations can do serious damage to the overall cost of running an automotive salvage yard. A well implemented Safety Program can boost the morale of your employees, and ultimately boost productivity along with it. ■ With over 25 years experience in pollution prevention, Mike James is President of James Environmental Management, Inc., specializing in environmental compliance assurance and currently serving over 1,200 facilities in the U.S. LARA By Michelle Keadle-Taylor Tammy Arroyo Makes Her Mark in Auto Recycling ammy Arroyo, President of A & E Salvage and Recycling, based in Indiana, has a remarkable story. It’s one of beating the odds, taking chances and succeeding through perseverance and hard work. T well. “I guess I should also say that my husband was my knowledge base. I learned the most as we worked the late nights and weekends as we separated what I had bought during the week. It’s funny to say my husband was the brains and I was brawn, in the beginning, but that is the way it was.” A Family with History When Tammy married her junior high school sweetheart at the Making Wise Decisions age of 14, owning and running a The Arroyos started A & E successful business with her husSalvage and Recycling by renting band was probably the furthest 12 acres of land, located just south thing from her mind. of Sullivan, Indiana. In the beginThere was nothing I was not willing ning, silent partners helped them “John was 16 and I was 14 years to do to build this company. old when we got married,” said purchase a Ford F550 rollback, Tammy. “I know this sounds which is still in use today. Tammy impossible, but it’s true. We had our first and Recycling. Tammy worked for the remembers some of those early days of daughter two weeks after I turned 15 county government for 12 years and getting established. and we have been together for 40 years. John worked for a company that handled “At first we had very little capital and We have three beautiful, intelligent, auto recycling for 14 years. had to use it wisely,” she said. “Most of it wonderful daughters. All three daughWith a change in the political climate was earmarked to purchase scrap. Howters graduated from high school and two and a new administration, Tammy was let ever, in order to do so, we needed a way decided to continue their education and go from her job. Some people would walto weigh it so we purchased a 5’ x 5’ floor graduated from Rose-Hulman Institute low in self-pity and despair at this news, scale. Just imagine buying one to two ton of Technology, Indiana University, and but Tammy and her husband decided to truck loads of scrap using a 5’ x 5’ sq. ft. University of Florida. make a bold decision to start A & E floor scale. After doing this day in and “They married three great men and Salvage and Recycling in 2006, with very day out, the word efficiency begins to gave John and I the sons we never had,” little money. John continued to work fullbecome something very foremost in Tammy continued. “Our grandchildren time at his job while Tammy got down to your mind. are the greatest ever; a definite extension work on establishing the business. “The property had a very large pole of all of us rolled up and split into six lit“I actually knew very little about ferrous barn on it and for the most part, we were tle people, who by the way, rule. There and non-ferrous metals,” confessed happy with it – until it rained. The roof aren’t any words that could possibly Tammy. “I had learned a bit just by liswas more like a sieve than a roof. We describe how John and I feel and how tening to my husband talk with his clients walked around in ankle deep water proud and thankful to God we are for as he went about his work. We laugh every time it rained. Safety was a huge our children and their families. Now, all about his cell phone being a permanent concern and we had to get inventive to three daughters have a role in the comextension of his ear. He worked practikeep the electrical cords out of the pany and this makes us thankful and cally 24 hours a day, seven days a week. water.” grateful.” Weekends, holidays and even funerals, he was always on call for his boss, for his Sleeves Rolled Up, Hard Work Applied ending Up in the Business customers, for the road crews and the Much of Tammy’s learning experience Not only did the Arroyos beat the statruck drivers he supervised. was hands-on and trial and error. tistics of teen pregnancy and divorce, and “I also learned as we did daily business “There was nothing I was not willing to enjoyed the benefits of a thriving family and sometimes I learned the hard way by do to build this company,” she said. “I life, they had also established successful losing money. I was fortunate that I had popped radiators, removed condenser careers prior to opening A & E Salvage employees who knew the business, as cores, wiring harnesses and converters. I March-April 2012 | Automotive Recycling 23 LARA Continued Tammy Arroyo (left) and Tom Klauer, Schnitzer Steel (center) went head to head in a bidding war for Dale Bevell’s heirloom ADRA ring. All three were applauded for their generosity that ultimately benefitted the ARA Educational Foundation. ammy Arroyo caught our eye two years ago when she attended her first LARA meeting at the Lexington, KY, convention, asking relevant questions about the auto recycling business during the session. But this year, she emerged as an outstanding LARA member at ARA’s Award Dinner at the ARA Convention in October. In a beautiful bidding war with Tom Klauer, Schnitzer Steel, she ended up the proud owner of Gary Bevell’s ADRA ring. Tom Klauer was actually awarded the ring because he outbid her. However, he turned to Tammy and handed her the ring. She had just underbid him by one hundred dollars. She accepted the ring and they both pledged the money they had each bid to the ARA Educational Foundation. After the dinner, Gary came over, with son Dale, to greet and congratulate Tammy. She said it was an amazing experience. “I don’t have the words to describe meeting Gary and Dale and how happy he was to have raised that much for the foundation meant to me,” said Tammy. “The ring is a piece of a man’s history and I definitely don’t feel like I earned it as he did. Yet, I proudly wear it and feel honored to have it the way it came about. The money went to education, which is one thing our family considers important and all agree on.” The rare ring, one of only three ever given out, was awarded to Gary Bevell in the ‘80s as a reward for recruiting the most ADRA members for the year. T cleaned aluminum wheels and even poked gas tanks with our 10 foot gas tank poker and fluid collection device. “I lived and breathed the salvage yard. My husband was still working at his full time job and I ran the salvage yard during the day. However, after hours the work really began. We cleaned and upgraded material every day until late in the evenings and then all day Sundays as well.” 24 Automotive Recycling | March-April 2012 Tammy says she has always known more about cars than most people, particularly women, but even with all of her previous knowledge she found out how much she really still had to learn. I never had to know much about the actual parts of cars or their scrap value,” she said. “Sure, back in the day I knew what a radiator was, what it did, where it was on most vehicles, how to fill it, and have even had to replace a few, but never had I ever had to pay attention to what they were made of, what the value of that material was, or even that there was such a thing as ‘clean’ and ‘dirty.’ However, I got very good very quickly at determining these things. “The same is true of the various kinds of wire.” Tammy continues. “Sure I knew what copper wire was or at least I thought I did until we opened this business. That is when I got an education about the various types, grades and prices of copper wire. Even after all this time I am still learning about our nonferrous products.” In those early days, it was sometimes difficult for Tammy to remember that she was actually the President of A & E Salvage and Recycling. She put in long days, drove loaders, cleaned wire, and did whatever job needed doing. By the end of the day she was really tired and really dirty. “Back then you knew what you had done that day and exactly why you were so tired,” she said. “There was so much that needed to be done and much of it was physical labor. Even though it was tough, I was always excited to get up the next morning and do it all over again. I just kept in mind all of the individuals who started their companies in their garages and those who did not have very glamorous beginnings, but really built something of which they could be proud.” Low-tech Security Lessons The security they had around their property at that time was, according to Tammy, as low-tech as it could get. Their fence consisted of the junk vehicles they purchased, stacked end to end. Tammy says this is where she started to learn how hard it is to deter thieves. “We laugh about our old fence now considering how nice the fence is at our new facility, but in those days we did the best we could with what we had,” she said. “We weren’t always successful at foil- ing the bad guys but it is very stand how anyone can take a livdifficult to stop someone when ing breathing creature and dishe or she is determined to get card it as if it were just trash.” what they want regardless of the risk.” Challenge of All Challenges After a year of business and a Tammy has had other challittle more money in the bank, lenges as she worked to set up the Arroyos decided to purthe business, such as staying on chase property rather than top of new laws, enhancing rent. They found a five-acre parsecurity for their business, comcel that included a small house, peting with other salvage yards close to their original site. that don’t have salvage licenses According to Tammy, this was or reporting to NMVTIS. Howan important move for the ever, one of her biggest chalbusiness. lenges came when her husPartners in business and life, John and Tammy Arroyo, owners of A & E Salvage “I feel that purchasing this and Recycling, having some fun at the ARA Annual Convention in Charlotte, band quit his full-time job to property and moving our busi- North Carolina. dedicate all his time and attenness was the best decision I had tion to A & E Salvage and made to date for the company,” she said. Recycling. Moving our business “Of course, we went in with more knowl“When my husband came on board was the best decision edge than when we had when we first full-time he wanted to change everyopened, but wow, did we still have a lot thing,” said Tammy. “I worked so hard to I had made to date to learn. The only thing we have ever have a no-nonsense business and I felt this for the company. done that was more difficult while being benefited A & E as a company. I felt like so rewarding was create our family.” John wanted to take everything away I ly we would get to where we are today had worked so hard to create and change Hard Work Paying Off and it would be built, almost literally, of it into something else. He did, but not for Today, A & E Salvage and Recycling has blood, sweat and tears.” the reasons I thought. grown to 18 employees and recently For Tammy, one of the worst things “I think I was being selfish on my part. opened a second location in December. about establishing the business is the cruEven to this day, we still knock heads on “I enjoyed every moment, every scrape, elty to animals she has witnessed. business issues. So, we brought in our cut and bruise because I knew I was “The worst part of this business, for me, daughters to help with the business and building something that I could be is learning how some people treat anito balance us out. All of us working proud of in the future,” Tammy said. mals,” she said. “We would pop the trunk together will bring greatness to A & E “I knew we would look back on those on a car and find corpses of dead aniSalvage and Recycling. John and I want to late nights, those days wading in the mals. People would leave boxes of pupleave our children a company that they water and those sleepless nights of wonpies or kittens in junk cars. They would can be as proud of as we are of them!” ■ dering if our fence was enough to deter abandon dogs and cats on the property Michelle Keadle-Taylor is a freelance writer based in Northmost thieves. I knew then that eventualafter hours. Honestly, I will never underern Virginia. March-April 2012 | Automotive Recycling 25 Focus On WORKPLACE SAFETY The Big Lie Warning: Reading this could make you mad. But, calling you out on your safety program, or lack thereof, could save a life. Literally. By John Gilstrap T All the contents of this issue of Automotive Recycling are for general information purposes only. Such contents do not constitute legal advice. Readers should consult counsel for specific advice concerning ultimate safety standards and compliance. 26 Automotive Recycling | March-April 2012 Our dismal numbers make us the 7th deadliest industry in America, at precisely the time when regulators around the country are jacking up fines and hiring new regulators. Six-figure OSHA fines are becoming commonplace, and seven-figure fines are not unheard of. As the director of safety for the Institute of Scrap Recycling Industries, I hear from members all the time who are apoplectic over the brazenness of newly-empowered and freshly-enabled OSHA compliance officers who arrive unannounced and spend days or even weeks picking through operating areas, writing up every discrepancy they find. The general consensus of those who are audited by OSHA is that they have been victimized by overzealous bureaucrats. I counter that those compliance officers are merely doing their jobs by catching business managers in the act of not doing theirs. If this moment in iStockphoto.com: Background: kryczka; Yield: DNY59; Ambulance: sturti he recycling industry hurts and kills a disproportionately high number of people compared to other industries. According to the U.S. Bureau of Labor Statistics, in 2010, workers in the “refuse and recycling” industry were killed on the job at the rate of 29.8 fatalities per 100,000 workers. That’s compared to a rate of only 18 fatalities per 100,000 for police officers. Given the nature of the work we do, it seems inconceivable to me that our jobs are 33% more dangerous than that of a cop. Focus On WORKPLACE SAFETY history is, in fact, the perfect storm of regulations and litigation, then the storm is the direct result of a rain dance we’ve performed for forty-two years. Yes, forty-two years. That’s how long OSHA regulations have been around, and they have seen precious little alteration in that time. For the vast majority of workers toiling today, the regulations have been in effect for every moment of their professional lives. To claim ignorance of a body of law that has been around for so long is disingenuous, at best. At worst, it’s a prime component of a multi-faceted delusion regarding worker safety that I call “The Big Lie”. The truth is that we really do know about safety regulations. We just don’t care. And our fatality statistics prove it. iStockphoto.com/sturti The truth is that we really do know about safety regulations. We just don’t care. 28 Automotive Recycling | March-April 2012 To be clear: I’m not suggesting that we don’t care about our employees, or that we wish them harm – in 30 years in the safety business, I’ve never run into a situation where business owners didn’t prefer a healthy workforce over and injured one – I’m just suggesting that we don’t care enough to do enough to protect them. “Safety is Number One.” We’ve all seen the sign that proclaims safety to be the top priority. It’s on walls, on advertising boards, and sometimes even stitched into workers’ uniforms. Safety. Is. Number. One. Bullpucky. Quit lying. Safety is not number one. Production is number one. Money, customers, units processed and quality are all higher priorities in most businesses. We say that safety’s first because we know that’s what we’re supposed to say. People expect it. But we don’t believe it in our hearts. Think about it. If you’re like most managers I know, you don’t tolerate tardiness or absenteeism in an employee, but you’re more than willing to forgive a safety infraction. You’ll accept “oops, I forgot” as an excuse for not wearing protective equipment or not locking out a machine, but you’d never accept that as an excuse for a quality violation. The simple fact of the matter is that safety rarely has an equal place at the management table. Every day, we actively manage for productivity and quality and profit, but safety is relegated to a tool box talk and a meeting every other Thursday. Certainly, safety is not first. In the interest of honesty, every business owner needs to make a choice: He either has to stop perpetuating the The Big Lie and take that sign down, or he needs to figure out a way to turn the sign into a statement of truth. The second choice is preferred. And it’s easier to do than you think. Managing For Safety is Like Managing for Anything Else We need to stop thinking of safety as an asterisk on a larger mission of profitability. Safety and productivity are close siblings, not distant cousins. We need to stop having separate production meetings and safety meetings, and start having safe-production meetings. We need to reorient how we think about the management challenge that is safety. Focus On WORKPLACE SAFETY If someone does get hurt, the consequence to the injured employee’s manager will be ... Nothing. When we manage for anything – quality, productivity, whatever – we intuitively break the management challenge into four steps: 1. Establish the goal. 2. Communicate the goal to others. 3. Put a plan in place to achieve the goal. 4. Evaluate the plan as we go along, and make corrections as necessary. In the space available here, we’ll only be able to get through Step One – but Step One’s a doozy. iStockphoto.com/Kir by Hamilton Establish the Goal Nine times out of ten, the safety management model stumbles on the first step out of the gate, when we first attempt to establish a goal for safety. For a goal to be capable of evaluation, it must be stated as a positive integer. We don’t tell our management team, “we want to make more money this year than last year.” That’s far too soft. Instead, we establish solid goals of making X dollars by processing Y units at a margin of Z. Once the goals are established, managers are held accountable for achieving them. When it comes to safety, though, establishing goals becomes more difficult. Absent a good measure of safety, companies often resort to something like, “zero accidents.” Let’s think this through. Is zero really our goal, or in our heart of hearts, would we really be happy if we had fewer injuries this year than last year? Be honest now. 30 Automotive Recycling | March-April 2012 If you had ten lost time accidents last year, wouldn’t you be doing the happy dance if you only had five this year? Sure you would. The problem is that we can’t go on the record saying, “our safety goal for 2012 is to injure five employees.” Talk about your mixed messages. Besides, most safety goals aren’t really goals, anyway; at least not in the same sense as production goals, which are the ones we make sure everyone understands. We tell our management team that their goal – consistent with that big sign on the wall – that there’s zero tolerance for anyone getting hurt. And if someone does get hurt, the consequence to the injured employee’s manager will be ... Nothing. There’s no clearer evidence of The Big Lie than the disparity that exists between the consequences to a manager when he fails to meet production goals versus when he fumbles his safety goals. Management incentives are typically all about production, with little or no consideration given to safety. The Myth of the Careless Employee More times than not, “worker carelessness” is listed on workers compensation forms as the primary cause of accidents. When this is the case, the typical corrective action listed is, “instructed the worker to be more careful.” Among safety professionals, this is considered less-than-optimum accident investigation. We accept this as truth, though: workers are careless. If that is indeed the case, then why not hire more careful employees and be done with it? In fact, if worker carelessness is, in fact, a primary cause of accidents, why don’t we solve the problem permanently by firing the person who does the hiring? We don’t do that because it’s a preposterous solution to a preposterous allegation. By and large, in my experience, workers aren’t hurt when they’re being careless; they’re hurt when they’re doing what they were told to do. Consistent with other elements of The Big Lie, employers tacitly encourage “careless” behavior by rewarding the resultant perceived productivity. We allow workers to take short cuts, to drive too fast, to not wear seat belts, to operate equipment whose guards are missing or broken, and to toil in unsafe conditions often because those conditions and practices are so commonplace as to become invisible. dalgo manuel Hi happened on your watch, and you’re responsible, just as you’re responsible for the good stuff that happens on your watch. After someone is hurt, concentrate on finding the string of failures that led to the injury, and worry less about whose fault it was. Beginning with a presumption of carelessness ruins morale, and guarantees that similar injuries will happen in the future. Investigations need to be about fact-finding. Leave the name-calling for the school yard. A successful safety program – the long journey toward transforming The Big Lie to a statement of fact – begins when you establish real goals, and you hold managers accountable to them. “Zero accidents” is a counterproductive goal, if iStockphot o.com/Em In the hundreds of accidents I have investigated in my career, the vast majority of injured workers sustained their injuries while performing tasks exactly the way they’d always been performed. If they didn’t lock out the machine it’s because they never lock out the machine. It’s only after the bottom fell out of their luck jar and they had the audacity to get hurt that their bosses start calling them names: Careless. Stupid. Inattentive. Here’s a self-test: If you’re the boss, and you don’t require workers to shut down a piece of equipment whose guard is missing or damaged, if you don’t discipline workers for driving a fork truck without a seatbelt, or if you don’t continually seek out potential hazards and fix them on the spot, then you’re the one being careless. And if, as a result of your inattentiveness or carelessness, someone gets hurt, don’t dishonor everyone by calling it an “accident.” Call it what it is: a management failure. If it’s your job to move units out the door, then it’s also your job to send your employees home whole and healthy. I’m not suggesting necessarily that the injury was your fault, but merely that it March-April 2012 | Automotive Recycling 31 Focus On WORKPLACE SAFETY The idea is to raise the profile of safety to the same level as productivity. only because it doesn’t measure anything positive; it merely measures the absence of a negative. Even if you achieve the goal, you won’t know why. That’s not management. That’s rolling the dice. So, what are good safety goals? Only you can decide what’s most relevant to your operations, but the key requirements are that the goals be a) measurable, and b) reasonably achievable. It’s also important that the goals focus on managers and supervisors, not on line employees. (Line employees only get away with what their bosses let them get away with.) Some suggested goals: Achieve an average score of 90% or better on weekly audits conducted by other managers (i.e., cross-inspections); conduct X safety training sessions per week; ensure an average turnaround on safety work orders of not more than X days. The idea is to raise the profile of safety to the same level as productivity. 32 Automotive Recycling | March-April 2012 At the Institute of Scrap Recycling Industries, ISRI Safety provides a wide range of safety outreach services to our members. We go to their facilities and train their employees onsite. We help managers untangle the knot that is the safety management challenge. These services are offered free of charge, but with one stipulation. They must sign the ISRI Safety Pledge, which states in part, “Our mission as a company is to serve customers and produce high-quality product safely. If we cannot do it safely, then we will not do it at all.” Unless a company is willing to embrace the notion that no dollar in revenue – no million dollars in revenue – is worth a drop of blood, no amount of training, counseling or engineering will be able to make the workplace safe. ■ John Gilstrap has been a safety engineer for 30 years, and is the director of safety for the Institute of Scrap Recycling Industries in Washington, DC. He is also the New York Times bestselling author of nine thrillers. His books have been translated into over 20 languages. Contact John at johngilstrap@isri.org. Focus On WORKPLACE SAFETY Clear The bottom line of a vibrant safety program is to not only saves lives, but also money – both clear reasons to make it a priority. By Michelle Keadle-Taylor ews Vi Views A iStockphoto.com/Anthony Seebaran ccording to Bill Velin, Wells Fargo Insurance Services, it is extremely critical that auto recyclers have a good safety plan in place. Over the years, he has seen many cases where the auto recyclers who had a good solid safety plan put more money to their bottom line, instead of to paying workers compensation penalties. “If you want to save money on insurance and workers compensation it is critical to preach proactive safety measures,” said Velin. “The only solid measuring stick that an insurance company has to give you a competitive quote is recent valued loss returns for all lines of coverage. They want to see what claims you have had and their severity.” In general, Velin says that the claims for the auto recycling industry tend to be more severe than, for example, employees in an office, by virtue of the nature of the business. “Anytime you have exposure to heavy machinery such as crushers, dismantling operations, forklifts and such, you have a better chance for serious March-April 2012 | Automotive Recycling 33 Focus On WORKPLACE SAFETY injuries,” said Velin. “You may only have had two claims in the last five years but both of those involved fatalities. That will cause you to have a higher rate of insurance.” the experience modification. It’s weighted by 70% against the recycler who is filing the claim. They are penalized, according to the severity and frequency of claims. How Does It All Work? Your experience modification is compiled by your state. All worker compensation claims are required to be submitted to the state and the state compares your claims with other auto recyclers’ claims to come up with your experience modification rate. All recyclers start out with manual rates and if your experience modification is better than average you get discounts in the rate you pay. If your experience modification is worse than average, you get a surcharge added to your bill. If 1.00 is the average and your experience modification rate is under 1.00, for example, .80, that is considered a good modification rate and you would receive a 20% discount. On the other hand, if you have an experience modification rate of 1.30, you would have to pay a 30% surcharge. Once you have claims that end up in a Lost Time Injury, a weighted formula is used to calculate Practical Advice With all of this in mind, it proves that it is always better to be proactive in safety. While putting proactive safety measures in place will not eliminate claims altogether, it will reduce them. When shopping around for insurance, three tips for getting the best price include that you: • Must be able to show your computerized claims – if the risk is good, you have great loss experience (which means very little worker compensation claims) but are unable to produce computerized claims then the insurance company will not be able to offer good prices for their quotes. • Be proactive up front, in your hiring processes. • Understand your workers compensation rates. Jon Walsh works with safety in mind at Robertson’s Auto Salvage, an ARA Certified Auto Recycler in Wareham, MA. 34 Automotive Recycling | March-April 2012 Making a Safety Plan Now that you have an understanding of how safety impacts insurance, let’s get down to crafting an insurance-minded safety plan. Following these tips will provide favorable circumstances with underwriters. 1) Have a good, formal, written OSHA compliant safety program. “Even though it is imperative that auto recyclers have a good safety plan in place, and many do, there is still a lot of room for improvement,” said Velin. “Most ARA members who have the C.A.R. and Gold Seal certifications are already differentiated from your average or below average recycler and have formal safety plans in place. The key, however, is to make sure it becomes part of the culture of the business rather than just a plan.” All ARA members that take insurance through Wells Fargo receive, at no cost, a formal, written OSHA compliant safety program. According to Velin, that automatically saves you at least $2,500 dollars that you would pay to hire an independent consultant to do so. The safety program provides a roadmap on how to have proven initiatives in place. 2) Once you have the safety program, the next step is the installation and implementation of the program. It’s making sure that you are doing what the roadmap is instructing you to do. “We understand that it takes time and manpower to set up safety committees and if the auto recycler wants help doing that, we can provide someone to come in and help install the safety program,” said Velin. “The Wells Fargo representative will come in, for a fee, and actively set up committees of five to six people (depending on size of organization and employee availability). The first thing they will do is to start looking over claims and find the potential problem areas. Once the safety program is up and rolling, the Wells Fargo representative bows out, leaving the recycler to manage the established program. Velin says not only will your workplace be a safer place, but it will help your bottom line. “Once you have a safety plan that is established, not only will it keep your employees safer, but by putting these measures in place, it keeps losses down, price of insurance goes down and your bot- tom line goes up,” said Velin. “So much money is currently spent by companies on their property and casualty insurance. Having a good, effective safety plan reduces the number of claims and that savings automatically drops to your bottom line. It will save you money on property and casualty insurance policies.” 3) Avoid many workers compensation claims by being proactive in your interviewing and hiring process. “You’d be surprised at how many no-brainers, lack of common sense accidents and claims I’ve seen,” said Velin, “such as someone lighting a cigarette while someone is taking gasoline out of a car and it causes an explosion. Or, newer employees lifting transmissions without using the proper equipment that their employers provide for them, and they hurt the soft tissue in their back, resulting in a back injury. Now the employer has to pay for workers compensation and medical bills, and also hire someone else to work while they are absent.” Legally, you cannot ask a prospective employee if he or she has filed for workers compensation March-April 2012 | Automotive Recycling 35 Focus On WORKPLACE SAFETY before, but you can ask questions that will give you clues. For example, someone applies for a job and during the interview you ask him if he will have a problem lifting 70 pounds. He says he can lift 70 pounds. Then, the first time he tries to lift a 70pound alternator and he can’t and hurts himself, he files for workers compensation. You can find out that he had a pre-existing condition and he could be fired. “It’s important that you follow the same sound hiring and interviewing process that any large company would do,” said Velin. “You should have a good interview process that includes checking references, conducting background checks, and having potential employees get physicals, and take drug tests. Doing so, could save you thousands of dollars.” 4) Try to get as many employees to buy health insurance as you can. “We have a horrible case of the ‘invincible’ in this country,” said Velin. “They are a group of single males under thirty that decline health care coverage offered by the company. They want the extra money in their pocket. Then, during softball season they hurt themselves playing softball and tear their ACL. On Monday, they come into the office acting as if everything is ok, despite being in horrible pain. Then they fall down at work, grab their knee, and put in a workers compensation claim. “How would the owner even have an inkling that this was bogus? It’s impossible for the owner to watch every move that an employee makes. The sad thing is that this happens all the time and business owners are paying for it.” Another client of Velin’s saw a drastic difference in the amount of money he was shelling out for workers compensation when it became clear that he was being played. “A few years ago I had a client that was a large manufacturer and he came to me with a 2.25 worker com- 36 Automotive Recycling | March-April 2012 pensation rate which meant that he had to pay a 225% surcharge on his worker compensation claims,” said Velin. “I spent the entire summer in my free time graphing his losses and workers compensation claims and it became very apparent that over a ten-year period, twice a year there were spikes in the numbers of claims. During the months of May and June and then again in September and October there was an extraordinary amount of claims. “The first thing we did is look at the demographics of his company and he said he had hired 1,500 single males – none of which took health insurance. He offered it to them but they declined coverage. I asked him if he was paying his employees to take time off during softball season and hunting and fishing seasons and he said no, of course not. I told him, oh yes, you are. “The bottom line was that employees were getting sports injuries or wanting time off to go fishing or hunting so they pretended to get hurt at work. Not only did they get their medical bills paid, they got time off, with pay. The owner was shocked and said he never would have believed it if I hadn’t graphed it all out for him to see. “He went to his employees and didn’t drop the hammer, but let his employees know he knew what they were doing. He offered that they could have time off without pay to go fishing or hunting, but they did not want that. Suddenly there were less injuries and his experience modification rate was cut in half to 1.40 over the next several years.” Insurance companies do not base their rates on what happened in just one year. After you put a safety program in place they will look at how well it is working by examining your claims to see if it has resulted in reduced loss experience. They will look at a period of three or four years and see if your safety measures have actually worked and reduced your worker compensation claims. In addition to putting the above tips in place Velin offers a few more ideas to help you save some money and create a safer workplace. They are: 1) Change the mentality of the company about safety. During the safety meetings, explain to all employees how worker compensation claims affect your business and affect things that really matter to employees, like raises. 2) Try to eliminate the stupid things that cause claims. You can’t eliminate true accidents, but you can eliminate others that are caused by carelessness. For example, do not allow employees in the dismantling area to work too many hours in a week. The chances for an accident are greater and you will pay more for those exposed to greater risk, especially when it comes to health care. 3) Don’t wait until it’s too late and the claim is in. Get employees involved by asking for witnesses to the accident. You want to get the employees on board to keep an eye out for false claims. If they understand the impact it has on the business and on them, they will be more aware of what is going on in the workplace. Peer pressure does wonders in helping to reduce the number of bogus claims. Following these tips should show you the merits of putting a safety program in place, if you don’t already have one. If you do have one, but it is not working very well, or you still have a claim frequency problem and want more information, you can contact Bill Velin at Wells Fargo Insurance Services for more specific advice. He can be contacted at bill.velin@wellsfargo.com or by calling 800-328-6311, ext. 3039. ■ Peer pressure does wonders in helping to reduce the number of bogus claims. Michelle Keadle-Taylor is a freelance writer based in Northern Virginia. March-April 2012 | Automotive Recycling 37 Focus On WORKPLACE SAFETY All About OSHA U OSHA inspections – A fact of life for automotive recycling facilities. By Betsy Beckwith nder the Occupational Safety and Health (OSH) Act of 1970, Congress created the Occupational Safety and Health Administration (OSHA) to “assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance.” The OSH Act covers employers and their employees either directly through federal OSHA or through one of the 27 OSHA-approved state programs. Four of these 27 however only apply to public service employees (CT, IL, NJ, and NY). OSHA uses its 10 regional offices and 90 local area offices to carry out its mandate. What Does OSHA Look Like? OSHA describes itself as a relatively small agency; with its state partners the program has approximately 2,200 inspectors responsible for the health and safety of 130 million workers, employed at more than 8 million worksites around the nation – which translates to about one compliance officer for every 59,000 workers. Even with this ratio, OSHA has reached into many businesses, including those in the automotive recycling industry. In addition to an on-the-ground inspection force, OSHA also provides phone helplines and e- 38 Automotive Recycling | March-April 2012 mail access to those who need assistance or who wish to file a complaint. Just last year, more than 200,000 individuals utilized these services – including nearly 43,000 callers who selected the option to file a complaint about a workplace hazard, and more than 32,000 inquiries made through the OSHA e-correspondence system. What OSHA Requires from Automotive Recycling Facilities – Meeting its Standards OSHA standards are rules that describe the methods employers are legally required to follow to protect their workers from hazards. Before OSHA can issue a standard, it must go through a very extensive and lengthy process that includes substantial public engagement, notice and comment. The agency must show that a significant risk to workers exists and that there are feasible measures employers can take to protect their workers. OSHA has developed over 100 specific standards applicable to general industry (including automotive recycling facilities) for the following categories. Standards • Walking-Working Surfaces • Exit Route & Emergency Planning • Occupational Health and Environmental Control • Hazardous Materials • Personal Protective Equipment • Environmental • Medical and First Aid • Fire Protection • Compressed Gas and Compressed Air Equipment • Materials Handling and Storage • Machinery and Machine Guarding • Hand & Portable Powered Tools & Other Hand Held Equipment • Welding, Cutting and Brazing • Electrical As noted in other articles in this issue, OSHA’s top 10 most commonly cited violations of standards in 2011 include: 1. 1926.451 – Scaffolding 2. 1926.501 – Fall Protection 3. 1910.1200 – Hazard Communication 4. 1910.134 – Respiratory Protection 5. 1910.147 – Lockout/Tagout 6. 1910.305 – Electrical, Wiring Methods 7. 1910.178 – Powered Industrial Trucks 8. 1926.1053 – Ladders 9. 1910.303 – Electrical, General Requirements 10. 1910.212 – Machine Guarding Of particular interest are the following 10 most frequent violations for 5015 facilities: • 19100305 16 8 14122 Wiring methods, components, and equipment for general use. • 19040029 13 5 3300 Forms. • 19101200 12 8 3930 Hazard Communication. • 19100178 10 7 3375 Powered industrial trucks. • 19100106 8 3 12465 Flammable and combustible liquids. • 19100215 8 5 5455 Abrasive wheel machinery. • 19100157 5 5 5144 Portable fire extinguishers. • 19100023 3 3 2715 Guarding floor and wall openings and holes. • 19100219 3 2 1800 Mechanical power-transmission apparatus. • 19100037 2 2 1584 Maintenance, safeguards, and operational features for exit routes Training/Grants/Education To support safe operations at businesses, OSHA offers training courses and educational programs to help broaden worker and employer knowledge of the recognition, avoidance, and prevention of safety and health hazards in their workplaces and to successfully meet these standards. OSHA also offers training and educational materials that help businesses train their workers and comply with the OSH Act. Through the Outreach Training Program and the OTI Education Center Program, OSHA makes available a selection of occupational safety and health classes designed for workers and employers. In addition to courses and materials, OSHA also offers grants to nonprofit organizations to develop training materials and/or deliver training and education for workers and employers. Enforcement OSHA believes its enforcement efforts are vital to ensuring workplace safety and health. Reportedly, enforcers target the most hazardous workplaces and the employers that have the highest injury and illness rates. OSHA’s targeted inspection efforts focuses on establishments with high injury and illness rates and both Local and National Emphasis Programs (LEPs and NEPs). The emphasis programs focus on March-April 2012 | Automotive Recycling 39 Focus On WORKPLACE SAFETY industries with high injury, illness, or fatality rates, or on hazards such as lead, silica, or the risk of amputations. The Enhanced Enforcement Program is designed as a supplement to these programs to focus enforcement efforts on recalcitrant employers. Inspections According to OSHA’s Integrated Management Information System (IMIS), Federal and State OSHA programs conduct approximately 80,00090,000 inspections each year, broken down into total, programmed, and unprogrammed protocols. Programmed inspections are often triggered due to high hazards in the workplace, recorded injuries and fatalities as well as high Days Away, Restrictions and Transfers (DART) rates. In FY 2011 there were 40,215 federal inspections and 52,056 state inspections. The automotive recycling industry accounts for a very small percentage of these interventions as is noted below. For example, in FY 2010, OSHA conducted 40,993 total inspections. This number includes 164 significant and egregious (instance-byinstance) enforcement actions, each resulting in a total proposed monetary penalty of more than Safety and Health Management Resources For Automotive Recycling Businesses ARA University (www.arauniversity.org) – Safety, Health and Compliance Training Courses • Eye Safety • Forklift Safety • Fire Safety-Construction • Hazard Communication • Personal Protective Equipment • Slips, Trips and Falls Safety Booklet – ARA together with Wells Fargo updated its Employee Safety Booklet in late 2011. This booklet is a quick reference guide for safe operations. CAR Manual – Safety Standards ARA Facility Managers and Employees Guide to Environmental and Occupational Safety and Health Inspections (published in 2000) OSHA Enforcement Inspections Online Portal – www.osha.gov/pls/imis/industry.html 40 Automotive Recycling | March-April 2012 $100,000. In addition, OSHA conducted 24,759 programmed inspections. These inspections indicate that OSHA devoted more resources to proactively target the industries and employers that experienced the greatest number of workplace injuries and illnesses. OSHA also conducted 16,234 unprogrammed inspections, including employee complaints, accidents, and referrals. Currently there are NEPs focusing on the hazards of combustible dust, amputations, lead, crystalline silica, and trenching/excavations. In addition, OSHA has more than 140 Regional/Local Emphasis programs around the country. Local Emphasis Programs (LEPs) for Automotive Recycling Industry OSHA relies primarily on its LEPs and NEPs, and the Site Specific Targeting Program for the vast majority of its enforcement work. Of particular interest to automotive facilities are LEPs, which are enforcement strategies designed and implemented at the regional office and/or area office levels. These programs are intended to address hazards or industries that pose a particular risk to workers in the office’s jurisdiction. Oftentimes, these LEPs will be accompanied by outreach intended to make employers in the area aware of the program as well as the hazards that the programs are designed to reduce or eliminate. OSHA reported that, based on a nationwide review of inspection histories that demonstrated that many significant hazards have been identified at establishments in the 5015 SIC and 432140 NAICS codes, LEPs were activated in Philadelphia’s Region III and in Syracuse, New York’s Region II to reduce the hazards and exposures at automotive recycling facilities. Some individual auto recyclers in those areas have recently been notified of this program via letter – the contents of which encourage the recyclers to follow OSHA guidelines and be prepared for possible on-site inspections. Indeed some of the automotive recyclers’ facilities in both NY and PA have just been subject to the on-site inspections. Specifically, according to OSHA, the scrap metal being processed by the workers may contain alloys or can be coated with toxic substances. Workers cutting this scrap metal are exposed to metal fumes and gases as well as hazards from mercury, ultraviolet radiation, noise and heat. Also, OSHA states that the workers in these industries are exposed to a variety of safety hazards produced by heavy equipment operations, powered industrial trucks, cranes and moving machine parts. establishments primarily engaged in dismantling motor vehicles for the purpose of selling parts. • Using SIC code 5015, 56 inspections occurred in 2011 in the following 21 states: AL, CA, DE, FL, GA, IL, IN, KY, MD, MN, NC, NJ, NV, NY, OH, OR, PA, SC, VA, WA and WI. • 61 inspections occurred in 2010 in 24 states including AL, AZ, CA, GA, IA, IL, KY, MA, MI, MN, NC, NE, NJ, NM, NV, NY, OK, OR, PA, SD, VA, WA, WI and WV. OSHA’s most comprehensive inspection program is the Site-Specific Targeting Plan (SST), which targets workplaces that have 40 or more employees and have reported the highest injury/ illness rates. The targeting lists are updated every year to reflect the most recent data. Virtually all SST inspections are comprehensive visits in which OSHA’s targets workplaces that have reported the highest injury/ illness rates. Violations In FY 2010, OSHA found 96,742 violations of OSHA’s standards and regulations in the nation’s workplaces, a 15.3% increase since FY 2006. The total number of serious and repeat violations issued increased by 22.1% and 8.1%, respectively, over the past five years. The total number of willful violations issued significantly increased by 217.1% since FY 2006 and increased by 278.8% since FY 2009. Snapshot of OSHA Action on SIC code 5015/ NAICS Code 423140 Facilities – Defined as scrap metal processing industry and motor vehicle parts – used; merchant wholesalers which also includes March-April 2012 | Automotive Recycling 41 Focus On WORKPLACE SAFETY the agency’s compliance officers examine all aspects of the workplace’s operations as well as the effectiveness of its safety and health efforts. OSHA Cooperative Programs OSHA offers the following cooperative programs under which businesses, labor groups, and other organizations can work cooperatively with the Agency to help prevent fatalities, injuries, and illnesses in the workplace. On-site consultation and SHARP – OSHA’s Onsite Consultation Program offers free and confidential advice to small and medium-sized businesses in all states across the country, with priority given to high-hazard worksites. In FY 2010, responding to requests from small employers looking to create or improve their safety and health management systems, OSHA’s On-site Consultation Program conducted over 30,000 visits to small business worksites covering over 1.5 million workers across the nation. On-site Consultation services are separate from enforcement and do not result in penalties or cita- 42 Automotive Recycling | March-April 2012 tions. Consultants from state agencies or universities work with employers to identify workplace hazards, provide advice on compliance with OSHA standards, and assist in establishing safety and health management systems. The On-site Consultation Program’s Safety and Health Achievement Recognition Program (SHARP) recognizes small employers who operate an exemplary safety and health management system. Upon receiving SHARP recognition, OSHA exempts your worksite from OSHA programmed inspections during the period that your SHARP certification is valid. Alliance – OSHA works with the public to promote safe and secure workplaces and to enhance worker voice in the workplace. OSHA joins with groups committed to worker safety and health, including unions, consulates, trade or professional organizations, faith- and community-based organizations, businesses, and educational institutions, to leverage resources and expertise to help ensure safe and healthy workplaces and worker rights. ■ Betsy Beckwith is a consultant with ARA’s Government Affairs Department. Focus On WORKPLACE SAFETY Getting a Lift A Forklift operation is one high risk task that should not be left to untrained amateurs. By Michelle Keadle-Taylor ccording to data analysis conducted by the Occupational Safety and Health Administration (OSHA), the single largest cause of forklift accidents that result in fatalities is vehicle tip-overs. The second highest number of fatalities is caused by accidents where employees were crushed between a vehicle and a surface. In both cases, proper training could have helped to avoid those accidents in the first place. “The dilemma is that without knowing the limitations of the equipment we are operating, we don’t know the dangers and we can cause harm to ourselves and others around us,” said Joe Watson of ABC Auto Parts. “There are still too many in our industry that operate forklifts without having the proper training. I know because that’s how I learned. It was a long time ago but I didn’t get proper OSHA training. I got hands-on training, not book training. So, I learned the dangers of operating forklifts through my own mistakes.” Watson feels that training is necessary because it provides the baseline for safety for everyone. “Let’s be honest. Most regulation exists because of stupid or ignorant people. Regulation attempts to keep us safe, from ourselves and others in the work place. I mean think about it, if you are going to have someone untrained operate a machine that has a good chance, if used improperly, to kill someone, that is either stupid or you just don’t know any better,” said Watson. “But, that’s the same with everything. Do we really need to drive just 55 mph? Most of the time probably not, but it’s the few that drive way too fast and way too reckless, that make it necessary to constantly remind us to drive slower.” March-April 2012 | Automotive Recycling 43 iStockphoto.com/ugur bariskan Focus On WORKPLACE SAFETY Online Help Class With this in mind, OSHA was created over 40 years ago to set regulations and standards and provide training that would ensure a safe workplace. “Under the Occupational Safety and Health (OSH) Act, employers are responsible for providing a safe and healthful workplace,” said Ginny Whelan, Managing Director, ARA Educational Foundation. The ARA University (www.arauniversity.org) is assisting with that process by offering training that will help ARA members to meet OSHA requirements and even more importantly, create a safe workplace for their employees.” ARAU offers two forklift training courses. This is online training and certification that is required by OSHA of all operators of forklifts (rough terrain vehicle forklift) and the requirements include certification renewal every three years. Real Hands-On Training Watson, who has been driving a forklift since he was a teen working at his Dad’s yard, has taught forklift training for many years. He uses a combination of the OSHA classroom training and practical handson training to ensure that all of his drivers are competent and safe drivers. “If you are operating a forklift you should be OSHA-trained, whether it’s in the auto salvage industry or in your own backyard,” said Watson. “It doesn’t only protect you, but those around you. The way I have taught forklift training was to begin by admitting the mistakes I had made myself. “I start off asking who in the room had ever put too much weight on the forklift. Everyone usually looks around at each other, then I put my hand up and say, ‘I have.’ Other hands follow. Then I would ask another mistake and put my hand up.” Watson uses the OSHA Guidelines in the classroom setting first to acquire what he calls “dead knowl- 44 Automotive Recycling | March-April 2012 edge;” then takes students out to the forklifts to gain what he calls “living knowledge.” “In past classes, I took students out to the forklifts and got them to purposefully go against the guidelines until we reached the point of just before they would fail so they could see what that would feel like,” he said. “I wanted to create a fail-safe plan in a safe environment that would allow the driver to learn what they would do in the event that the machinery did start to tip or if they had loaded too much, what that would feel like and what they should do to correct it. “Through this training, employees got to learn what it would feel like to have too heavy of a load and try to make a turn or if they had too high of a load how that changes the stability and how that feels, and believe me when it starts to fail, you feel it.” Avoiding Accidents Watson feels the biggest problems encountered are operating a forklift with an unsecured load where an operator will try to lift things and they fall off; trying to lift too heavy of a load; and having a load too high when turning. He offers three warnings: First of all, make sure you secure your load as per OSHA guidelines. Next, make sure correct weights are lifted depending on the type of forklift you are operating; this is where classroom application comes in. The instructor should review how to find the correct weights for each type of forklift. Practical experience and training also come into play here, because you can feel when you have loaded the forklift too heavy or high. For example, if you have loaded your pickup truck too much, it will drag the ground. To address the problem of turning with too high of a load, he says it’s a marrying of the two, classroom and practical training to know when you are operating a forklift in an unsafe manner, which again depends on type of forklift you are operating. Watson is pleased that he personally has never had accidents where people got hurt. However, he has had accidents that caused damage. “Of the accidents you hear the most often, you hear of people dropping a vehicle while operating a forklift,” he said. “It’s easy to cause damage to your vehicle or building that way. I have dropped a car in an area where I wasn’t supposed to because I was going along and had it too high. It changed the center of gravity and bam, I dropped it. Most of the time, accidents like those occur because we’re under time constraints and pressure. We’re in a hurry.” Plan, Train, and Maintain Watson says that one way to avoid these type accidents is to put some time into planning and training. “Giving time to planning the layout of your yard, time management, and proper training is essential because it helps to avoid accidents,” he said. “In our yard forklift drivers get the right of way because their view is often obstructed and they are big. Training is a constant reminder. If you don’t know it’s dangerous then you’ll do it; if you know it’s dangerous you’re less likely to try it or do it. Taking simple measures like these will help reduce potential safety problems.” Watson says the maintenance of the forklifts is also important, for example, tracking how often the fluids are changed or the lines are checked. “My belief is that there is a lot of machinery that is not maintained properly, so the training should highlight the dangers of unsafe machinery,” said Watson. “As you become more aware of the dangers you become more concerned with what could happen.” Proper safety training helps employees to become aware of the potential danger in their surroundings. Watson says that even though you may get by doing things in an unsafe way, it’s not worth the risk. “Today OSHA has guidelines that state you can’t have a person under the car while it’s lifted on a forklift, but in the old days we used to cut the exhaust off a car while it was lifted up – today we would have been in clear violation of OSHA regulations,” said Watson. “Did we have any problems back then with doing that? No, but since then we’ve become aware of the potential dangers in doing that and put measures in place that would prevent loss of life or injury to our workers, customers, or property. “You can cut and cut and cut trying to save money but in the long run, you eventually have a horrible accident that ends up costing you more in workers compensation, paying someone else to work in their place, and holds you personally liable. If you don’t think about safety as extremely important, you might unintentionally create an unsafe workplace, putting your business at risk. OSHA guidelines can help create a fail-safe environment that reduces injuries and accidents – which in the end saves you lives and money.” ■ Michelle Keadle-Taylor is a freelance writer based in Northern Virginia. March-April 2012 | Automotive Recycling 45 Focus On WORKPLACE SAFETY Compliant Pro A If your plan neglects airbags, you fall short of meeting compliance mandates. ARAPro™, a product of ARA Product Services LLC, can help members meet federal regulations. By Michelle Keadle-Taylor iStockphoto.com/Stockphoto4u RA members take pride in the quality of their work, reputation, and the parts they sell. They generally go above and beyond what is required for certifications, such as Certified Automotive Recycler (C.A.R.) or Gold Seal, and comply with federal regulation on the environment, HazMat, and other areas. Forward thinking companies should make airbag protocol a mandatory part of safety training, because it is a viable profit center – and it is part of compliance law. 46 Automotive Recycling | March-April 2012 ARAPro™ Airbag Protocol, a product of ARA Product Services LLC, is the automotive recycling industry standard for extraction, handling, and inspecting non-deployed OEM airbags. This is a voluntary standard for recyclers selling airbags and it offers auto recyclers a one-stop shop for all of their airbag needs, including, easy-to-use, 24-hour, web-based training, testing, and certification for technicians handling both airbags and hazardous materials. ARAPro™ is available through www.AirbagResources.com, and is very affordable for ARA members, at only $99 per year, per yard. State affiliated chapter members can join for a slightly higher rate of $129 per year, per yard. All employers shipping airbags in commerce are required to train and test their employees. “The purpose of ARAPro™ is to ensure best practices are employed when processing these parts,” said Peter Byrne, who manages the ARAPro™ Program for ARA Product Services LLC, with nearly 20 years experience in the airbag industry, including several years with TRW, the largest U.S. airbag maker. “The emphasis is on safety for the employees and making sure the airbags are not changed as they are handled in the recycling process. Airbags are regulated materials. All employers shipping airbags in commerce are required to train and test their employees. The Department of Transportation is actively enforcing these regulations. ARAPro™ offers thorough, practical, cost-effective training.” Because it is web-based, no travel is required and you do not have to pay to bring a trainer in to your yard. There is no limit to the number of employees or part-time employees who may be trained under the system. All you need is access to the Web. The Web site offers 24 hour, seven days per week, access to both airbag and HazMat training and testing for employees. How ARAPro™ Works There are two parts to the program: Airbag Protocol and Hazardous Materials training and testing (required to ship airbags in commerce). ARAPro™ is an elective industry standard option for auto recyclers. The hazardous materials training and testing, however, is not voluntary for shipping airbag modules in commerce. If you ship airbag modules, as the majority of auto recyclers do, a federal requirement is imposed on an employer to train and test employees in hazardous material regulations. These modules are regulated and designated hazardous materials by the Department of Transportation. ARAPro™ offers the only formal recycled airbag extraction, handling, and inspection results database in the industry. Once an employee has read all the material on airbags, hazardous materials, they can take the test and must earn a score of 100% in order to obtain the certification. An employee can re-take the test as many times as needed. “The employer can have all of his or her employees take the training and certification, or a few,” said Byrne. “They are all covered in the $99 annual membership fee. They may re-take the tests as often as needed to get the required 100%. If they have to re- take the test, even more than once, it won’t be time wasted because they are learning more each time and thus, ensuring a safer work environment.” Personalized certificates can be created for employees who pass the airbag and hazmat tests. Certification, in the case of hazardous materials, is valid for three years while airbag certification is good for one year. The original vision for ARAPro™ was to make OE recycled airbags more marketable to insurance companies for insurance paid collision repairs. “However,” said Byrne, “the official policy of insurance companies is to only use new airbags. Regardless of the insurer’s position, ARAPro™ helps recyclers standardize their airbag related operations, track inspection records, and ensure employees are airbag trained, certified, and safe.” Marketing Airbags “The recycled airbag market is substantial,” says Byrne. “Our Web site www.AirbagResources.com has an airbag meter that estimates the number of inquiries made about airbags. We reckon that about once every 19 seconds, someone makes an electronic inquiry about recycled airbags!” Recyclers who take and pass the airbag and HazMat training (including the required security awareness training) are able to use the ARAPro™ brand to further differentiate themselves from others selling airbags. They can refer their body shop customers to ARAPro™ airbag part search, a special search engine that pulls up only those with ARAPro™ certification. This narrows the search for a potential buyer while increasing the odds of a sale for the recycler. “I acknowledge that compliance with the law places time and cost restraints on a recycler and that it seems like they are being punished for obeying the law while there are people re-selling airbags and shipping them via the U.S. Postal Service,” says Byrne. ™ Benefits of ARAPro While recyclers follow the regulations on HazMat materials, other non-recyclers are selling airbags online. Seemingly skirting the rules, some send airbags through the U.S. mail, failing to declare them as hazardous materials, and using non-approved packaging; all of which are clear violations of federal regulations. “It’s my hope that the people enforcing the federal March-April 2012 | Automotive Recycling 47 Focus On WORKPLACE SAFETY law on hazardous materials will turn their attention away from the law-abiding and focus on the non-law abiding offenders,” Byrne comments. The ARAPro™ Airbag Protocol program offers these features to participating recyclers: • Web-based training for yard employees in airbag basics, inspection and safety. • Multiple choice tests for employees after they complete the self paced training. • Inspection procedure which guides the technician on the checks to make on each airbag and automatically stores the results in a relational database. • Certificate of Conformance listing the checks performed on the airbag to be included with the part and kept on file. • Hazardous Materials training. • Personalized certificates for both Airbag and Hazardous Materials training for employees who successfully pass the tests. The ARAPro™ brand provides body shop and consumer’s assurance. 48 Automotive Recycling | March-April 2012 • ARAPro™ part search engine, in collaboration with CarPart.com, filters search results listing only airbags from ARAPro™ member recyclers. Tips for Airbags The program’s home page, www.airbagresources.com, contains information on the training program. “Guidelines for Use of OEM Non-Deployed Airbags” is a free downloadable PDF full of safety tips. Another feature of the airbag inspection software is the real time Airbag Recall Check. At the touch of a button, the software checks the government airbag recall notices and immediately warns the technician if a recall campaign is in place, saving time, effort, and adding to customer satisfaction. The ARAPro™ brand provides body shop and consumer’s assurance. For more information, visit www.airbagresources.com or e-mail Peter Byrne at peter@airbagresources.com. ■ Michelle Keadle-Taylor is a freelance writer based in Northern Virginia. Focus On WORKPLACE SAFETY Safety ARA C.A.R. certification offers you an advantage to laying the foundation of a powerful safety program. By Sue Schauls iStockphoto.com/Dmitrii Brighidov S 101 afety compliance is an important part of running a safe automotive shop. A safety program is a necessary part of doing business in a safe and compliant manner. Setting up a safety program is not as difficult as it may seem once you break down the necessary components in to smaller steps, using the ARA Certified Automotive Recycler (C.A.R.) program as a model. The C.A.R. program’s basic safety standards offer auto recycling facilities guidance to compliance. This practical guide may be useful in designing a compliance program. The safety program standards discussed in this article provide general guidance and do not guarantee compliance with federal law. To review C.A.R. program standards, visit the ARA Web site at www.a-r-a.org/content.asp?contentid=480. March-April 2012 | Automotive Recycling 49 Focus On WORKPLACE SAFETY Safety Program Safety Standard 8 A safety program where a specific individual is in charge of holding regularly scheduled safety meetings and safety inspections. WHAT TO DO: 1. Prepare/maintain a written hazard communication plan 2. Designate a Safety Supervisor 3. Compile/maintain the MSDS sheets for all chemical products stored on-site. (Download the basic auto recyclers MSDS at www. sueschauls.com/msds.html.) 4. Conduct monthly/regularly scheduled safety meetings corresponding to the C.A.R. standards and other important topics. Log training events and maintain records on-site. 5. Conduct and log regular/annual safety inspections. Maintain records on-site. Become Familiar with the Rule The Hazard Communication Standard (HCS) is based on a simple concept – that employees have both a need and a right to know the hazards and identities of the chemicals they are exposed to when working. They also need to know what protective measures are available to prevent adverse effects from occurring. The HCS (29 CFR 1910.1200) is designed to provide employees with the information they need. Under the provisions of the Hazard Communication Standard, employers are responsible for informing employees of the hazards and the identities of workplace chemicals to which they are exposed. Identify Responsible Staff Simply stated this is the Safety Supervisor. Hazard communication is an ongoing program in the facility. In order to have a successful program, it is necessary to assign responsibility for both the initial and ongoing activities that have to be undertaken to comply with the rule. For any safety and health program, success depends on commitment and possibly a change in behavior, if employers understand the program, and are committed to its success, and if employees are motivated by the people presenting the information to them. Identify Hazardous Workplace Chemicals The Standard requires a list of hazardous chemicals in the workplace as part of the written hazard 50 Automotive Recycling | March-April 2012 communication program. The list will serve as an inventory of everything for which a MSDS must be maintained. The best way to prepare a comprehensive list is to survey the workplace. Purchasing records may also help. Employers should establish purchasing procedures that result in MSDSs being received before a material is used in the workplace. Check your files against the inventory you have just compiled to ensure that an MSDS exists for each potentially hazardous chemical. If any are missing, contact your supplier and request one. Preparing and Implementing a Hazard Communication Program All workplaces where employees are exposed to hazardous chemicals must have a written plan which describes how the standard will be implemented in that facility. The plan does not have to be lengthy or complicated. It is intended to be a blueprint for implementation of your program – an assurance that all aspects of the requirements are addressed. (Download a sample plan at www. sueschauls.com/Haz_Comm__Sample_Plan.doc.) Add the facility specific information and the name of the Safety Supervisor to the template plan provided. Add any additional site specific information to the plan and keep a copy of this written plan in the MSDS binder or readily available in case of an OSHA inspection. Personal Protective Equipment Safety Standard 1 Photo submission required for this standard. Utilization of Basic Personal Protective Equipment Including Gloves, Hard Hats, Safety Shoes, Safety Clothing, Safety Shields, and Goggles, When Required Personal protective equipment (PPE) can help complement other measures taken by employers and employees to minimize hazards and unsafe conditions. Recent OSHA revisions require the employer to complete a written hazard evaluation of the workplace to determine employee hazards and the PPE necessary to protect them. Personal Protective Equipment (PPE) is specialized clothing or equipment worn by employees for protection against health and safety hazards. Personal protective equipment is designed to protect many parts of the body, including; eyes, head, face, hands, feet, and ears. WHAT TO DO: 1. Determine appropriate PPE for the facility and complete written hazard evaluation. 2. Train each employee required to use PPE. 3. Make PPE available to employees or require that employees provide their own PPE. Eye Wash Station Safety Standard 2 Photo submission required for this standard. OSHA Approved 15-Minute Eye Wash Station(s) Readily Accessible Near Corrosive Materials (i.e. battery storage, processing and recharge areas). Workers’ eyes may be damaged very quickly by exposure to contaminants in battery storage or vehicle processing areas. The first fifteen seconds after an eye injury is critical. The American National Standards Institute (ANSI) suggests that eye wash stations be located within 100 feet, or a 10 second walk, of critical work areas. WHAT TO DO: 1. Install/maintain an OSHA approved 15minute eye wash station(s) where corrosive materials are used. 2. Provide annual training to employees on the location and use of an eyewash station. 3. Complete an Emergency Eye Wash Protection Plan and retain a copy in safety records. Fire Extinguishers Safety Standard 3 Photo submission required for this standard. Readily Available, Appropriately Typed, and Fully Charged Fire Extinguishers Fires may be caused by welding or torching, fuel or fume explosions, electrical problems, or ignition of combustibles. Take preventive measures, learn how to recognize and respond to different types of fires, and properly handle and store chemicals and flammable liquids. 5. Arrange for hydrostatic testing by trained persons at specified intervals by state. 6. Train employees on fire prevention and emergency response. OSHA rule 29 CFR 1910.157 states that an employer shall provide approved portable fire extinguishers and shall mount, locate and identify them so that they are readily accessible to employees without subjecting the employees to possible injury. Fire extinguishers must be maintained in a fully charged and operable condition and kept in their designated places at all times except during use. Fire extinguishers for employee use should be selected and distributed based on the classes of anticipated workplace fires and on the size and degree of hazard which would affect their use. A multi-purpose ABC rated fire extinguisher is appropriate for an auto salvage operation. Inspection Requirements • Inspect monthly – Portable fire extinguishers shall be visually inspected monthly. • Conduct annual maintenance – Fire extinguishers are subjected to an annual maintenance check. Record the annual maintenance date and retain this record for one year after the last entry. Hire a professional. Many of the multi-purpose inexpensive fire extinguishers are on the manufacturer’s recall list. It only makes sense to use a professional fire extinguisher service to protect your employees and your business. Provide adequate protection such as back up fire extinguishers when portable fire extinguishers are removed from service for maintenance and recharging. Torch Protocol Safety Standard 4 Photocopy submission required for this standard. Company will administer and sign the C.A.R. WHAT TO DO: 1. Mount portable fire extinguishers in designated areas so that they are readily and easily identified and accessible. 2. Select appropriate type of extinguisher for potential class of fire. 3. Maintain fire extinguishers in a fully charged and operable condition. 4. Document inspections and annual maintenance on a tag affixed to each extinguisher. March-April 2012 | Automotive Recycling 51 Focus On WORKPLACE SAFETY Torch-use Education & Orientation Protocol prior to an employee’s use of a cutting torch. WHAT TO DO: 1. Retain a signed and dated copy of this and any other training programs in the employee files prior to use of a gas cutting torch. 2. Conduct and log cutting torch safety awareness for all employees at least once annually. Download the Employee training material at www.a-r-a.org/files/torch_protocol_2009.pdf First Aid Kit Safety Standard 5 Photo submission required for this standard. A properly stocked first aid kit that is in close proximity to the dismantling areas, and is adequately sized for the number of employees in that area. A first aid kit allows trained workers to respond to a minor injury or illness, and to provide temporary relief of a more serious injury until professional medical assistance is obtained. WHAT TO DO: 1. Keep one or more first aid kits clean, dry, and readily available to workers. 2. Notify the workers of the locations of the first aid kits. 3. Keep the first aid kits well-stocked to treat common industrial injuries (bumps and abrasions, cuts, burns, strains and sprains, and eye injuries). Every salvage yard should maintain a first aid kit on-site at the facility in the event of a medical emergency. A well stocked first aid kit can complement other safety equipment such as the eye wash station and personal protective equipment. Together these supplies can protect employees. OSHA First Aid Kits and supplies are required to be readily available per 29CFR1910.151.b (Medical Services and First Aid). OSHA does not have a minimum requirement, but references ANSI Z308.1-2003 Minimum Requirements for Workplace First Aid Kits. Spill Kit Safety Standard 6 Photo submission required for this standard. Adequately sized spill kit(s) are available in close proximity to the storage and/or removal areas of the fluids listed in the environmental standards sec- 52 Automotive Recycling | March-April 2012 tion of this application. Every salvage yard should maintain a spill cleanup kit on-site at the facility in the event of an emergency spill. Spills have a few issues with which to be concerned. First is the protection of employees (and customers) if the spill contains hazardous material. To accomplish this task the appropriate type of spill cleanup kit must be selected from the myriad of choices available. The second issue is to make sure that employees are trained on the use and locations of all spill cleanup kits. Simple to do as long as you do it, it’s called TRAINING. Finally, if the quantity of material spilled is sizeable or made of acutely hazardous chemicals the spill must be reported to the regulatory agency. In some instances, an emergency response team will be discharged. These types of spills are infrequent at a well-equipped salvage yard. WHAT TO DO: 1. Maintain a spill kit(s) that contains appropriate absorbents and/or containment devices to handle the type and amount of fluids that could be released. 2. Place the labeled spill kit(s) where fluids are used or stored. 3. Provide and document training to appropriate workers on how to properly manage fluids, prevent spills and leaks, respond and clean up a spill, and dispose of the used absorbents. Self Serve Safety Posters Safety Standard 7 Photo submission required for this standard. Self Service facilities have posted safety reminders for customers. The Occupational Safety and Health Administration (OSHA) and state labor departments require safety posters to be displayed in businesses that are subject to OSHA reviews. Safety posters remind employees of precautions they need to take to remain safe in the workplace. In self-serve facilities safety posters can also remind technicians that are customers to conduct themselves in a safe manner too. ■ Sue Schauls is an independent environmental consultant with automotive expertise. She is the Iowa Automotive Recyclers Executive Director & I-CARE Program Manager and the CCAR-Greenlink Technical Advisor. Schauls, found at www.SueSchauls.com, participates in the ARA CAR, Technical Advisory and Affiliate Chapters committees. ARA SCHOLARSHIPS ARA Scholarship Foundation Recipients Academic Year 2011-2012 T he ARA Scholarship Foundation, Inc. is a non-profit organization whose purpose is to promote education through the awarding of scholarships. Monies are available to ARA members’ employee’s children for post-high school educational pursuits. These scholarships are funded through contributions from people like you, who care about the future of our children, as well as money raised at events. Each year, many generous contributors help the Foundation achieve its goals. The funds help even more students achieve their dream – gaining a college education. We appreciate all of you who generously contributed to this effort. Donations and fundraising derive money for the foundation. Now, how can you help? Why not send a donation today? You can even sponsor a named scholarship! Those wanting to make a donation of $1,000 at one time may name a scholarship for one year. For $10,000 a permanent scholarship may be named. A donor may name such scholarships in honor or memory of anyone of his or her choice. Contributions are tax-deductible and can be made by cash, check, MasterCard, Visa, or American Express. The deadline to apply for a scholarship for the next academic year is drawing near. Eligible applicants, those who must be a child of an employee of a direct ARA member company, need to apply for the scholarship funds by completing a scholarship application and submitting it by March 15, 2012. The awards are made based on scholastic achievement. Download an application from the ARA Web site at www.a-r-a.org or you can contact Kelly Badillo directly at (571) 208-0428 or e-mail kelly@a-r-a.org to receive an application by mail or e-mail. March-April 2012 | Automotive Recycling 53 2011-2012 SCHOLARSHIPS ARA FOUNDATION RECIPIENTS Academic Year 2011-12 DON COWELL HONORIAL SCHOLARSHIP Emily Andersen, University of Northern Iowa, Cedar Falls, IA Member: Vander Haag’s, Inc., Spencer, IA Parent: Roger Andersen RUBY GRIGGERS MEMORIAL SCHOLARSHIP Amy Anema, Huntington University, Huntington, IN Member: LKQ Corporation, Chicago, IL Parent: Kenneth Anema AL-JON SCHOLARSHIP Chelsey Baker, Florida State University, Tallahassee, FL Member: LKQ Potomac German Auto South, St. Augustine, FL Parent: Roberta Baker FAY ORCUTT MEMORIAL SCHOLARSHIP Samantha Baker, Florida State University, Tallahassee, FL Member: LKQ Potomac German Auto South, St. Augustine, FL Parent: Roberta Baker LKQ CORP SCHOLARSHIP Adam Baluch, Purdue University, West Lafayette, IN Member: LKQ Corporation East Region Mgmnt. Co., Akron, OH Parent: Matthew Baluch JAN SORENSON MEMORIAL SCHOLARSHIP Brad Bartels, Grand Valley State University, Allendale, MI Member: LKQ Veneklasen Auto Parts, Holland, MI Parent: Brian Bartels JOHN C. VANDER HAAG HONORIAL SCHOLARSHIP Jessica Behrens, Iowa Lakes Community College, Emmetsburg, IA Member: Vander Haag’s, Inc., Spencer, IA Parent: Jim Behrens 54 Automotive Recycling | March-April 2012 STEVE WATERBURY MEMORIAL SCHOLARSHIP Tawni Boardman, Whitewater University, Whitewater, WI Member: LKQ Star Auto Parts, Janesville, WI Parent: James Boardman STUART SPITZ HONORIAL SCHOLARSHIP Sean Fisher, Ohio University, Athens, OH Member: All Foreign & Domestic Used Auto Parts, Inc., Columbus, OH Parent: Guy Fisher RICHARD J. CASSIDY MEMORIAL SCHOLARSHIP Cassandra Johnson, Syracuse University, Syracuse, NY Member: Erie Volvo, Inc., Whitesboro, NY Parent: Jack Johnson JOHN ANSPACH MEMORIAL SCHOLARSHIP Amber Bovenmyer, Univ. of Wisconsin - Madison, Madison, WI Member: LKQ Star Auto Parts, Janesville, WI Parent: Amy Bovenmyer CLAUDE A. MILLER JR. MEMORIAL SCHOLARSHIP Tyler Garst, Washburn University, Topeka, KS Member: A&A Auto and Truck Parts, Topeka, KS Parent: Scott Garst G.M. VENEKLASEN MEMORIAL SCHOLARSHIP Ashley LaFrance, Eastern Washington University, Cheney, WA Member: Spalding Auto Parts, Spokane, WA Parent: Glen LaFrance NAN TODER MEMORIAL SCHOLARSHIP Caleb Bowman, Univ. South Carolina - Upstate, Spartanburg, SC Member: LKQ A & R Auto Parts, Duncan, SC Parent: Joe Bowman SANDY ANDERSEN MEMORIAL SCHOLARSHIP Danielle Gaw, Columbia College, Columbia, MO Member: J.C. Auto & Truck Parts, Monroe City, MO Parent: Brian Dean EZ CRUSHER SCHOLARSHIP April Lebhan, Anoka Ramsey Community College, Coon Rapids, MN Member: John’s Auto Parts, Blaine, MN Parent: Jan Johnson-Lebhan JOSEPH ALTFATER MEMORIAL SCHOLARSHIP Casey Carpenter, University of Missouri, Columbia, MO Member: LKQ Mid-America Auto Parts, Topeka, KS Parent: Kevin Carpenter WANDA LINDEMAN MEMORIAL SCHOLARSHIP Travis Hankamp, Santa Fe College, Gainesville, FL Member: LKQ Greenleaf - Lake City, Lake City, FL Parent: John Hankamp ELVIS MUNTZ MEMORIAL SCHOLARSHIP Candace Leegwater, Purdue University, West Lafayette, IN Member: Metro Auto Recyclers, Valparaiso, IN Parent: John Leegwater SOL & LIN TODER HONORIAL SCHOLARSHIP Hannah Dahlgren, Endicott College, Beverly, MA Member: Jerry Brown’s Auto Parts Center, Ltd., Queensbury, NY Parent: Julia Dahlgren BILL WEAVER HONORIAL SCHOLARSHIP Michael Henry, Lynchburg College, Lynchburg, VA Member: Norfolk Recycling, Inc., Chesapeake, VA Parent: Gary Henry CAROL PHELPS MEMORIAL SCHOLARSHIP Dylan Mangini, Western Washington University, Bellingham, WA Member: Airport Auto Wrecking, Inc., Port Orchard, WA Parent: Gerald Gargano MARY BUESSING & ROSE KELLY MEMORIAL SCHOLARSHIP Nicole Dutton, Bristol Community College, Fall River, MA Member: Sylvia’s Auto Parts, Inc., South Dartmouth, MA Parent: Sharon Dutton DAVID AUTRY MEMORIAL SCHOLARSHIP Emily Heuver, University of Maryland, College Park, MD Member: LKQ Potomac German Auto, Frederick, MD Parent: Marcel Heuver Jamie Markwell, Gannon University, Erie, PA Member: LKQ CorporationTriplett, Akron, OH Parent: Judy Markwell HARY RUBIN MEMORIAL SCHOLARSHIP Daniel Eckel, University of Illinois, Champaign, IL Member: LKQ Corporation, Chicago, IL Parent: Stephen Eckel SKIP WELLER HONORIAL SCHOLARSHIP Quinn Huver, Alma College, Alma, MI Member: Weller Auto Parts, Grand Rapids, MI Parent: Anthony Huver Damien May, Stark State College, North Canton, OH Member: LKQ Corporation-T riplett, Akron, OH Parent: Brett Bell Ashley Means, Eastern Michigan University, Ypsilanti, MI Member: LKQ of Michigan, Inc., Belleville, MI Parent: Robert Means KEN VONHOF MEMORIAL SCHOLARSHIP Baylee Mehr, College of St. Benedict’s, St. Joseph, MN Member: Pam’s Auto, Inc., St. Cloud, MN Parent: Michelle Mehr LINDA PITMAN HONORIAL SCHOLARSHIP Jennifer Rasco, Texas Tech University Health Science Center, Lubbock, TX Member: B & R Auto Parts, Lubbock, TX Parent: Terry Rasco ASHLEY GEIGER MEMORIAL SCHOLARSHIP Caleb Swinson, Appalachian State University, Boone, NC Member: Foil’s Automotive Recycling, Harrisburg, NC Parent: Timothy Swinson JOHN ANSPACH MEMORIAL SCHOLARSHIP Alyssa Venditto, Syracuse University, Syracuse, NY Member: LKQ Hunts Point Auto Parts, Bronx, NY Parent: Michael Venditto KATIE & ALEX LIEBERMAN FAMILY MEMORIAL SCHOLARSHIP Taylor Mehr, University of Minnesota, Minneapolis, MN Member: Pam’s Auto, Inc., St. Cloud, MN Parent: Michelle Mehr Geoffrey Riggs, Jr, Arizona State University, Tempe, AZ Member: LKQ All Models Corporation, Phoenix, AZ Parent: Geoffrey Riggs TERRY GRAY HONORIAL SCHOLARSHIP Christopher Taylor, Trent University, Peterborough, ON Member: Carcone’s Auto Recycling, Aurora, ON Parent: Daryl Leigh REGION IV ARIZONA & NEW MEXICO SCHOLARSHIP Daniel Weaver, University of Maryland, Baltimore, MD Member: Chaz’s Used Auto Parts & Towing, Toneytown, MD Parent: Sharon Weaver BO WROTEN HONORIAL SCHOLARSHIP Kelsey Thole, Baptist Bible College, Springfield, MO Member: B & B Auto Parts & Salvage, Inc., Oklahoma City, OK Parent: Dale Thole CAR-PART.COM HONORIAL SCHOLARSHIP Aubrey White, Univ. of North Carolina at Wilmington, Wilmington, NC Member: 67 Motors, Pfafftown, NC Parent: Gregory White NEW YORK ASSN. OF AUTO DISMANTLERS SCHOLARSHIP Clay Uplinger, Broome Community College, Binghamton, NY Member: Don’s Automotive Mall, Inc., Binghamton, NY Parent: Stephen Uplinger DICK & DOROTHY MERRELL HONORIAL SCHOLARSHIP Rebecca Wright, Univ. of WisconsinRiver Falls, River Falls, WI Member: John’s Auto Parts, Blaine, MN Parent: Eric Wright KENNY HUBBARD HONORIAL SCHOLARSHIP Melissa Minello, University of Toledo, Toledo, OH Member: Pull-A-Part Cleveland II (West), Cleveland, OH Parent: Bret Park GERALD C. SHEFTEL MEMORIAL SCHOLARSHIP Victoria Morrone, Georgia Southern University, Statesboro, GA Member: Weaver Automotive, Carnesville, GA Parent: Joseph Morrone Katelyn Mouw, South Dakota State University, Brookings, SD Member: Vander Haag’s, Inc., Sioux Falls, SD Parent: Steven Mouw Mariah Odom, Univ. South Carolina Upstate, Spartanburg, SC Member: LKQ A & R Auto Parts, Duncan, SC Parent: Michael Odom DON & CAROL PHELPS HONORIAL SCHOLARSHIP Casey Quaale, Spokane Community College, Spokane, WA Member: Bill’s Auto Parts, Inc., Spokane, WA Parent: Duane Quaale Rebecca Rapport, Ohio State Univ. Office of Bursar, Columbus, OH Member: LKQ Corporation, Aurora, CO Parent: J. David Rapport MARK T. SPEARS HONORIAL SCHOLARSHIP Blake Rostine, University of Nebraska, Lincoln, NE Member: LKQ Corporation, Chicago, IL Parent: Lois Rostine Samantha Schultz, Kishwaukee College, Malta, IL Member: LKQ Smart Parts, Hustisford, WI Parent: Sandy Schultz EDYTHE CLELAND MEMORIAL SCHOLARSHIP Gina Shanks, Saint Mary’s University, Halifax, NS Member: Covey’s Auto Recyclers, Blandford, NS Parent: David Shanks FRANK NICASTRI MEMORIAL SCHOLARSHIP Jenna Snively, Viterbo University, La Crosse, WI Member: Kadinger’s, Downing, WI Parent: Patrick & Julie Snively DONALD ROUSE HONORIAL SCHOLARSHIP Felicia Soderstrom, Washington State University, Pullman, WA Member: Spalding Auto Parts, Spokane, WA Parent: Duane Soderstrom Cody Steed, University of WisconsinWhitewater, Whitewater, WI Member: LKQ Star Auto Parts, Janesville, WI Parent: Tom Steed NORMAN DULANEY HONORIAL SCHOLARSHIP Emily Vanderbrink, South Dakota State University, Brookings, SD Member: Nordstom’s Automotive, Inc., Garretson, SD Parent: Yvette VanderBrink MAKE A DIFFERENCE! SEND YOUR CONTRIBUTION TO THE ARA SCHOLARSHIP FUND Mail to: ARA Scholarship Foundation, 9113 Church Street, Manassas, VA 20110-5456. Donations are accepted in the form of check, MasterCard, Visa, or American Express. Name: ____________________________________________________________________ Address: __________________________________________________________________ Address: __________________________________________________________________ Amount of Donation: ______________________________________________________ Check one: ❏ Check ❏ MasterCard ❏ Visa ❏ American Express Name on Card: ____________________________________________________________ Credit Card #: ____________________________________________________________ Expiration Date: ________________________________Card Security Code: __________ March-April 2012 | Automotive Recycling 55 Spotlight on EXCELLENCE Peacock Auto Salvage By Michelle Keadle-Taylor B ob Peacock, owner and President of Peacock Auto Salvage based in Macon, Georgia, is an example of someone who had a dream and made it come true. In 1975, fresh out of high school and without a dime in his pocket, he set out to fulfill his dream to own a salvage yard. “I started out without any money or property,” said Peacock. “There was a guy who had a small claw crusher and he would come through the area where I lived looking for junk cars to scrap. I made a deal with him that I would find the cars for him, and he would pay me for each car I found.” Before too long, Peacock saved enough money to buy a 1950 model two ton Macon Linen Ford Truck. He designed and constructed his first skid truck from this by placing a wench with two home-made rails that pivoted to the ground to load each car he bought onto the truck. With the money he made from this venture, he was able to buy more cars to save for crushing. Eventually, he had saved enough to buy two brand new Chevrolet one ton trucks. It was during this time that he had the dream to start his own salvage yard. “Back then, there were plenty of junk cars sitting around in people’s backyards,” said Peacock. “People didn’t lease cars then and a lot of elderly people, especially, would drive their cars until they died then purchase new ones. At first, I was using my own trucks to transport these cars from their yards to the scrap yard. 56 Automotive Recycling | March-April 2012 It wasn’t too long after I started this, that I made the decision to retain these vehicles to take the parts off of them to salvage, instead of taking them directly to the scrap yard.” Peacock began his search for land on which to store the cars he was amassing. He soon found what he was looking for. “I was fortunate to have a neighbor who owned a large farm and sold me land, bit by bit, and I would pay him yearly,” said Peacock. “At first, I started out by buying five acres from him. We continued like this for a period of time and I eventually acquired 150 acres in total. Instead of putting the money I earned in the bank, I invested it back into my business by purchasing the land.” As he looks back today, Peacock says for him, this time was the most challenging time of the business. “The biggest challenge I have ever had was taking presented at the ARA convena dream and stepping out to turn it into a reality,” said tion. Peacock. “I always had the concern of not having “We didn’t know who nomimoney and asking myself, ‘without money how can I nated us but it was a great feeldo it?’ I started out without anything but an idea, and ing to be recognized after all the challenge was how to survive and how to pay for the hard work we’ve put into it. I did extra work to pay off what I owed.” the business,” said Peacock. For example, Peacock, at one time, would cut grass Like most auto recyclers, and do yard work for an elderly lady, and in return, Peacock feels salvage acquisishe gave him six old junk cars she had sitting on her tion has been and continues to property. be a tough area of business. Peacock kept plugging away at it and gained “Car buying is something I money to acquire a boom truck and hire a couple still like to do and it used to be of employees to help him. Soon, he was able to build easy for me,” he said. “Now, his first office and in the 90’s, business started to realcompetition is open to the ly take off. world and most people bid Looking back, Peacock is amazed at what the busionline. When I first started ness has become. buying, three insurance adjus“I sit here in my newest building on this property tors would call me and I could and not a day goes by that I don’t think about what I pretty much bid on a car and went through to get here,” he said. “It’s unbelievable pay what I wanted for it. Back how the whole thing came about. It gives you self-motithen there were maybe only vation. You can’t start something and not finish. You three yards bidding on cars. have to set goals for yourself. Now it’s open to the world, “I was, and still am, blessed to have had the support plus I end up paying more in of my parents. They are good role models. They were auction fees than what I pay for the car. hardworking. My Dad worked three jobs and, al“This forces us to raise prices on our parts, and sadly, though he worked really hard, I never heard him comthis can lead to a loss of customers because they can plain. He even worked at my salvage yard when he buy new parts for some of the same prices. It really is retired.” one of the biggest issues facing auto recycling now and Peacock says he is also grateful for in the future.” the support of Jan, his wife of 37 years. Currently, Peacock Auto Salvage “We were young and had our first has plans to develop a Pick ‘N’ Pull son, Taylor, who was a year-old when I yard and aims to have it operational started my business,” he explained. this year. “She stood behind me in all my deci“We are also increasing our prosions and supported me all the way.” duction of rebuilt cars and trucks,” he Peacock’s Auto Salvage today conexplains. “We are leaning towards tinues to thrive and consists of 50 acres rebuilding cars and trucks because and two buildings including a 40,000 they are so expensive to buy new and square foot warehouse. Its delivery it is less expensive to rebuild them for radius stretches to 200 miles from the the purpose of resale. We are always city of Macon. It employs 20 people, trying to stay ahead of the game and with whom Peacock says it’s been a change as the nature of the business Robert Peacock, Peacock’s Auto Salvage. pleasure to work with. changes.” “Finding the right employees has never been a probAnd so, for Bob Peacock, the dream continues. His lem for Peacock Auto Salvage,” he said. “I have always father, “Mr. Ed” is alive and well and stops in every now had really honest and dependable employees. “I have and then, and Bob’s two sons are working with him worked with wonderful people and I have enjoyed in the business, so the future holds many possibilities. every bit of it.” Although challenges will come his way, Peacock has One of the milestones for Peacock and his business shown that he will take those in stride and overcome has been receiving ARA’s Star Award as the 2007 them and so will his business. ■ Certified Automotive Recycler Member of the Year, Michelle Keadle-Taylor is a freelance writer in Northern Virginia. March-April 2012 | Automotive Recycling 57 Certified News Gold Seal Program Approved Gold Seal Participants A & P Auto Parts, Inc. A-1 Auto Recyclers AAA Auto Salvage, Inc. ABC Auto Parts & Sales, Inc. Aberdeen Used Cars & Parts Albuquerque Foreign Auto Parts Algar, Inc. dba Grade A Auto Parts All Auto Parts Co. All Foreign & Domestic Used Auto Parts, Inc. Al’s Auto Parts, Inc. American Auto Parts American & Import Auto Parts Automotive Parts Solutions B & B Auto Parts & Salvage, Inc. B & B Auto Salvage, Inc. B & M Auto Sales & Parts, Inc. B Auto Parts Badger Motors Baird’s Auto Parts, Inc. Bay Auto Parts Bessler Auto Parts Bionic Auto Parts & Sales, Inc. Blenkhorn’s Auto Recyclers, Ltd. Bow Auto Salvage, Inc. Brothers Auto Salvage Yard, Inc. Brown’s Auto Salvage Butler Auto Recycling, Inc. BW Auto Dismantlers, Inc. C & H Salvage Corp. Calumet Auto Salvage, Inc. Car World, Inc. Carcone’s Auto Recycling Central Auto Recycling, Inc. Centre De Recyclage Universel (1981) Ltee. Chuck & Eddies Used Auto Parts Cocoa Auto Salvage, Inc. Columbia Auto Parts County Line Auto Parts Cousineau Auto Parts, Inc. D. A. Auto Parts, Ltd. Decatur Auto Parts, Inc. Denton County Auto Salvage Diamond Auto Parts Don’s Automotive Mall, Inc. Eiss Brothers Auto Parts, Inc. Elmer’s Auto, Inc. Erie Vo-Vo, Inc. Foreign Auto Salvage Freeman’s Auto Salvage Center, Inc. Goyette’s, Inc. Grimes Truck & Auto Parts H & H Auto Parts & Salvage, Inc. Hanser’s Automotive & Wrecker Company Hickman Motors, Inc. Highway 54 Salvage, Inc. J.C. Auto & Truck Parts Jantz’s Yard 4 Automotive, Inc. Jerry Brown Auto Parts Center, Ltd. Jerry Carney & Sons, Inc. John’s Auto Parts Kadinger’s II Kadinger’s, Inc. Kadinger’s, Inc. Kelly Auto Parts Kirchhayn Auto Salvage, Inc. Lacy Auto Parts, Inc. Lecavalier Auto Parts, Inc. 58 Automotive Recycling | March-April 2012 Cicero Rapid City Rosemount Blue Island Aberdeen Albuquerque Louisville Fontana Columbus Trevose Omaha Sterling Heights Rockville Oklahoma City Rapid City Waukesha East St. Louis Wisconsin Rapids Fairdale Green Bay Wilder Chicago Brookside Bow Indianapolis Bomoseen Pensacola Roseville Campbell Hall Milwaukee Candia Aurora Syracuse Val D’Or Plantsville Cocoa W. Columbia Kingsville Weston Dumfries Decatur Denton Fond Du Lac Binghamton Watertown Fountain City Whitesboro Ft. Wright Joplin New Bedford Grand Prairie Sussex Billings Hickman Trenton Monroe City Kenosha Queensbury Ames Blaine Barron Cadott Downing Faribault Cedarburg Charles City Ste.-Sophie NY SD MN IL NC NM KY CA OH PA NE MI MN OK SD WI IL WI KY WI KY IL NS NH IN VT FL CA NY WI NH ON NY QC CT FL SC MO WI Scotland IL TX WI NY NY WI NY KY MO MA TX WI MT KY TN MO WI NY IA MN WI WI WI MN WI VA QC Lewis Auto & Truck Parts LKQ Advanced Auto Recycling LKQ Auto Parts of Central Texas LKQ Auto Parts of North Texas, LP LKQ Auto Parts of South Texas LKQ Midwest Auto Parts LKQ of Michigan, Inc. LKQ of Nevada, Inc. LKQ of Southern California LKQ Potomac German Auto LKQ Smart Parts, Inc. LKQ Star Auto Parts, Inc. LKQ Triplett ASAP, Inc. LKQ West Michigan Logel’s Auto Parts M & M Auto Parts, Inc. Midway Auto Parts, Inc. Miller’s Auto Recycling (1992), Ltd. Morris Rose Auto Parts, Inc. Morrisons Auto, Inc. Nordstrom’s Automotive, Inc. Norfolk Recycling Corporation Northwest Auto Parts Olston’s Auto Recyclers Pam’s Auto, Inc. Parts Unlimited, Inc. Peacock Auto Salvage, Inc. Pete’s Auto & Truck Parts, Inc. Preferred Auto & Truck Parts, LLC Remington Auto Salvage, Inc. Rhine Auto, Inc. Rhodes Auto S/S/S, Inc. Ridge Road Auto Parts Riteway Auto Parts, Inc. Robertson’s Auto Salvage, Inc. Rockford Auto Parts, Inc. Sandhill Auto Salvage, LLC Schram Auto Parts Sharp Auto Parts, LLC Shroyer’s Auto Parts Snyder’s Recycled Auto and Truck Parts Sonshine Auto Parts Spalding Auto Parts, Inc. Speedway Auto, Ltd. Stadium Auto & Truck Parts, Inc. Stafford’s, Inc. Standard Auto Wreckers Stoystown Auto Wreckers Stricker Brothers, Inc. Tolpa’s Auto Parts Tom’s Foreign Auto Parts Toomer Enterprises, LLC dba Doggett Auto Parts Trails End Auto and Truck Salvage, Inc. Viking Auto Salvage, Inc. Walt’s Auto, Inc. Waterloo Auto Parts, Inc. Wayne Auto Salvage, Inc. Weller Auto Parts, Inc. West Side Auto Parts, Inc. Wilbert’s, Inc. Woodfin Honda / Pick and Save Yancey Auto Salvage Y-Yard Auto & Truck, Inc. Topeka Cumberland New Braunfels Hutchins Houston Omaha Wayne North Las Vegas Santa Fe Springs Frederick Hustisford Janesville Akron Holland Kitchener Stafford Kansas City Fort Erie Kalamazoo Edgerton Garretson Chesapeake Anchorage Lincoln St. Cloud Pearland Macon Jenison Conway Eau Claire Plymouth Streator Cleveland Phoenix Wareham Rockford Tama Waterford Stillwater Lansing Holland Cumberland Spokane Joliet Denver Montgomery Toronto Stoystown Batavia Remsen Waterbury Bryan Des Moines Northfield Springfield Waterloo Goldsboro Grand Rapids Laurel Webster Midlothian Perry Effingham KS RI TX TX TX NE MI NV CA MD WI WI OH MI ON VA MO ON MI WI SD VA AK NE MN TX GA MI AR WI WI IL OH AZ MA IL IA MI MN MI TX ON WA IL CO IL ON PA OH NY CT TX IA MN OH IA NC MI DE NY VA MO IL GOLD SEAL AUTO RECYCLERS: We have a page just for you. Go to www.facebook.com/GoldSealAutoRecyclers, LIKE the page, and then start posting information about what it means to be Gold Seal! (This is a public page.) Certified News Certified Automotive Recycler (C.A.R.) Program Approved C.A.R. Participants 43 Auto Salvage A & A Auto and Truck Parts, Inc. A & A Auto and Truck Parts, Inc. (North) A & C Auto Parts & Wrecking Co. A & T Auto Parts, Inc. AAAACO Auto Parts, Inc. Aadlen Bros Auto Wrecking Ace Auto Recyclers, Inc. Action Auto Parts, Inc. All Car & Truck Recycling All Foreign Used Auto Parts, Inc. Alliance Auto Parts Alvin’s Automotive Recycling American Auto Recycling Auto Parts City, Inc. B & M Cars & Salvage B & R Auto Wrecking Barger Auto Parts Bauer’s Auto Wrecking Bill’s Auto Parts, Inc. Bill’s Used Parts, Inc. Borges Foreign Auto Parts, Inc. Bowie Used Auto Parts, Inc. Brandywine Auto Parts, Inc. Brandywine Truck Parts Brandywine Two, Inc. Brooks Auto Sales, Inc. Bruce Auto Parts, Inc. Camp Auto Salvage Central Small Car Salvage Choice Auto Recyclers, Inc. Chuck’s Auto Salvage, Inc. Clayton Auto Parts & Wrecking, Inc. Colorado Auto & Parts, Inc. Compact Auto Parts Cosmos Ocean County Recycled Auto Parts Cosner Brothers Auto Parts, Inc. Counselman Automotive Recycling, LLC Cousineau Auto, Inc. Covey’s Auto Recyclers, Ltd. D-N-J Auto Parts Danny’s Auto Salvage, Inc. Denison Auto Parts, Inc. Dom’s Auto Parts Co., Ltd. Don Scharf Automotive, Inc. Dulaney Auto and Truck Parts of Amarillo, Inc. Duval Auto Parts Eagle Auto Parts, Inc. Economy Auto Parts Eden Used Auto Parts, Inc. Elgin Super Auto Parts and Sales, Inc. Fireside Auto Services, Inc. Five J’s Auto Parts, Inc. Foreign Car Parts, Inc. Fox Auto Parts, Inc. G & R Auto Parts, Inc. Gary’s U-Pull-It, Inc. Geiger Truck Parts, Inc. Glenn’s Auto & Truck Parts Green Point Auto Parts, Inc. Hi-Way Auto Parts Hi-Way Auto, Inc. Higgins Auto Wrecking, Inc. Hillsboro Auto Wrecking Horsehead’s Automotive Recycling Joplin Topeka Topeka Cleveland Hyde Park Lorton Sun Valley Iowa City Marshalltown Anderson Fredericksburg Woodside Oakland Gilbert Gurnee Sulphur Springs Corvallis Nampa Fresno Cumberland Christianburg Dighton Bowie Brandywine Brandywine Brandywine Oilville Mechanicsville Barberton Brandywine Marinette Douglassville Clayton Englewood Brandywine Bayville Troy Mobile Antigo Blandford Owensboro Tulsa Cleveland Courtice Eagle River Amarillo Forest Martinsburg Tulsa Eden Elgin Bellevue Albuquerque Upper Marlboro Belleville Oklahoma City Binghamton Watseka Houston Brewer Tyler Brownwood Bakersfield Hillsboro Elmira MO KS KS OH NY VA CA IA IA CA VA NY CA AZ IL TX OR ID CA RI VA MA MD MD MD MD VA VA OH MD WI PA OH CO MD NJ VA AL WI NS KY OK OH ON WI TX VA WV OK MD IL OH NM MD MI OK NY IL TX ME TX TX CA OR NY I-55 Auto Salvage J & J Auto Wrecking, Inc. Jeff Smid Auto, Inc. Jerry’s Auto Salvage, Inc. Junior Sinn Auto Parts, LLC Keiffer Auto Recyclers Knox Auto Parts & Rebuildable Wrecks Kress Auto Wreckers Leesville Auto Wreckers, Inc. Lems Auto Recyclers, Inc. Lentini Auto Salvage, Inc. Linder’s, Inc. LKQ - Barber’s Auto Sales LKQ 250 Auto, Inc. LKQ A & R Auto Parts, Inc. LKQ A Reliable U Pull It South LKQ Arizona LKQ Atlanta, LP LKQ Auto Parts of Utah, LLC LKQ Birmingham, Inc. LKQ Brad’s Auto & Truck Parts, Inc. LKQ Broadway Auto Parts, Inc. LKQ Copher Self Service Auto Parts Bradenton, Inc. LKQ Copher Self Service Auto Parts Clearwater, Inc. LKQ Copher Self Service Auto Parts St. Petersburg, Inc. LKQ Copher Self Service Auto Parts Tampa, Inc. LKQ Crystal River, Inc. LKQ Foster Auto Parts of Damascus LKQ Foster Auto Parts of Salem LKQ Foster Auto Parts, Inc. LKQ Gorham Auto Parts Corp. LKQ Hunts Point Auto Parts Corp. LKQ Melbourne LKQ Michael’s Auto Parts, Inc. LKQ Mid-America Auto Parts, Inc. LKQ Minnesota, Inc. LKQ North Florida LKQ Northern California (Redding) LKQ of Central California LKQ of Ft. Myers LKQ of Indiana, Inc. LKQ of Northwest Arkansas dba LKQ Mid-America LKQ of Tennessee LKQ Penn-Mar, Inc. LKQ Pick Your Part Anaheim LKQ Pick Your Part Bakersfield LKQ Pick Your Part Chula Vista LKQ Pick Your Part Help Your Self LKQ Pick Your Part Stanton LKQ Pick Your Part Sun Valley LKQ Pick Your Part Wilmington LKQ Pull n Save Auto Parts of Aurora, LLC LKQ Route 16 Used Auto Parts LKQ Salisbury, Inc. LKQ Savannah, Inc. LKQ Self Service Auto Parts - Holland LKQ Self Service Auto Parts - Kalamazoo, Inc. LKQ Self Service Daytona LKQ Self Service Memphis Manuel’s Auto Wrecking Channahon Marshallville Iowa Falls Big Lake Cape Girardeau Canton Knoxville Hazle Township Rahway Doon Ringoes Worcester Ardmore Harrisville Duncan Blue Island Phoenix Jenkinsburg Springville Birmingham Redmond Stuyvesant IL OH IA MN MO OH TN PA NJ IA NJ MA AL OH SC IL AZ GA UT AL OR NY Bradenton FL Clearwater FL St. Petersburg FL Tampa Crystal River Portland Salem Portland Gorham Bronx Melbourne Orlando Topeka Albert Lea Gainesville Redding Bakersfield Ft. Myers Plainfield FL FL OR OR OR ME NY FL FL KS MN FL CA CA FL IN Fayetteville Manchester York Haven Anaheim Bakersfield Chula Vista Wilmington Stanton Sun Valley Wilmington Aurora Webster Salisbury Savannah Holland Kalamazoo Daytona Beach Memphis Merced AR TN PA CA CA CA CA CA CA CA CO MA NC GA MI MI FL TN CA March-April 2012 | Automotive Recycling 59 Approved C.A.R. Participants Continued Massey’s Auto Parts, Inc. McDill Auto Wrecking, Inc. Metro Auto Salvage, Inc. Middleton Auto Parts Milliron Auto Parts, Inc. Misgen Auto Parts, Inc. Newton Auto Salvage, Inc. Newville Auto Salvage, Inc. Niks Auto Parts, Inc. Nissenbaum’s Auto Parts, Inc. North Verde Auto Salvage Ole South Auto Salvage, Inc. P & C Auto Wrecking, Inc. Pacific Auto Salvage, Inc. Paradise Auto Parts Pat’s Auto Salvage Premier Auto & Truck Parts, Inc. Pull-A-Part Akron Pull-A-Part Atlanta East Pull-A-Part Atlanta North Pull-A-Part Atlanta South Pull-A-Part Augusta Pull-A-Part Baton Rouge Pull-A-Part Birmingham Pull-A-Part Canton Pull-A-Part Charlotte Pull-A-Part Cleveland I (East) Pull-A-Part Cleveland II (West) Pull-A-Part Columbia Pull-A-Part Indianapolis Pull-A-Part Jackson Pull-A-Part Knoxville Pull-A-Part Lafayette Pull-A-Part Louisville Millington Stevens Point Lakeville Fraser Mansfield Ellendale Covington Edgerton Neenah Somerville Ontario Lake Placid Milpitas American Canyon Elkton Waterloo Cedar Springs Akron Lithonia Norcross Conley Augusta Baton Rouge Birmingham Canton Charlotte Cleveland Cleveland Columbia Indianapolis Jackson Knoxville Lafayette Louisville TN WI MN MI OH MN GA WI WI MA OR FL CA CA MD IA MI OH GA GA GA GA LA AL OH NC OH OH SC IN MS TN LA KY Online sales of industrial markers for auto salvage and auction • Permanent paint markers from $1.30 each • Steel tip pressurized markers for wet and oily metals • Removable markers for auto repair and dealerships Pull-A-Part Memphis Pull-A-Part Mobile Pull-A-Part Montgomery Pull-A-Part Nashville Pull-A-Part New Orleans West Pull-A-Part Winston-Salem Ransom Motors, Inc. Reitman Auto Parts & Sales, Inc. Rhinelander Auto Salvage Ripple’s Service, Inc. Robert’s Engines, Inc. Roberts Salvage, Inc. Rock & Roll Auto Recycling Rusty Acres Automotive, Inc. Salvage GM Parts of South Georgia, Inc. School Street Light Truck Parts Schram Auto & Truck Parts Lansing, Inc. Scotty’s Auto Parts Shipman Auto Parts, Inc. Smith Auto & Truck Parts, Inc. Smith Auto Parts & Sales, Inc. Snyder Auto Body & Paint Southern Maryland Used Auto Parts St. James Auto & Truck Parts, LLC Van Horn Auto Parts, Inc. Vander Haag’s, Inc. West Auto Wreckers, Ltd. Xtra Mile Truck Recyclers Memphis Mobile Montgomery Nashville New Orleans Winston-Salem Brandywine Melbourne Rhinelander Upper Marlboro Lucama Moffett Pleasanton Jacksonville Valdosta Lowell Mason Virginia Brainerd Garden City Fairfield Clarinda Mechanicsville St. James Mason City Spencer Chula Vista Phoenix TN AL AL TN LA NC MD KY WI MD NC OK CA FL GA MA MI IL MN KS IA IA MD MO IA IA CA AZ Why Join the CAR Program? The CAR program was created to produce a set of standards for general business practices, as well as environmental and safety issues, and to provide guidance for member facilities in adhering to these standards. This program is one of the cornerstones of our association as the facilities participating strive to put forward quality service and parts for the professional automotive recycling industry. www.facebook.com/AutomotiveRecycling We accept Visa, Mastercard, and American Express Like Us! Order online or toll free at 888-396-3848 Get Magazine and ARA Updates Free Shipping for orders over $25 60 Automotive Recycling | March-April 2012 International Auto Recycling Reports from Around the World Technical Competence is Global By Andy Latham, Bluecycle, UK ou have operated an Auto Recycling yard for 30 years, invested thousands in equipment, training and upgrading your site, and the Environment Agency now wants you to prove that you are “Technically Competent.” “A government agency telling me how to run my yard!” has been one of the most common complaints I have heard before delegates took part in the 1-day training that Bluecycle and Aviva recently provided in the UK. Technical Competence isn’t just about dismantling end-of-life vehicles. Profits from auto recycling can easily be swallowed up by inefficient and unsafe practices in the salvage yard. Most of the delegates in these courses went away realizing the investment they had just made in the training would have far reaching benefits to them, their employees and their businesses. The course had 4 objectives: • Identify Health, Safety and Environmental Hazards and Risk • Appreciate Health and Safety Law and Best Practice • Identify Operational Controls • Achieve Competence Requirements The environment can be defined as everything that surrounds us – air, water and land. Pollution can be defined as the release of substances or energy into the environment, which can contaminate air, water and land. Waste can be defined as any substance or object that the holder discards, intends to discard or is required to discard. Most auto recycling businesses are deemed to be high risk because of the substances they are dealing with, such as fuel, oil, and batteries. In the UK there is “strict liability.” If any pollutants are found to have originated from a recycling yard then the owner/operator is Y liable for all costs of cleaning up and restoring the polluted area back to its original state. Liability can also result in unlimited fines and up to 5 years imprisonment. Safe workplace, safe equipment, safe materials, safe people Health and safety standards, correctly applied, will change the working lives of many people. Customers and employees are protected from harm; equipment works properly and reliably; and the business can save money, with less down time, cheaper insurance premiums, and fewer days lost to injury related absences as a few examples. Owners and managers should occasionally take a step back from day-to-day activities and walk around the operation, noting any health and safety or environmental concerns. To enable a plan to be developed to tackle any issues, a simple calculation can be used to assess risk and prioritize action. Risk Level = likelihood x consequence In assessing the consequence of an event, for example, oil leaking into a river, or an employee tripping on something and being off work for a week, rate incidents on a scale of 1 to 5, where 1 represents an event of very low consequence and 5 is very high. Then look at the likelihood of this event occurring, again rating on a scale of 1 to 5, where 1 is very unlikely and 5 is highly likely, which will allow you to calculate the risk factor. Once the whole operation has been reviewed, work on priority. Focus on the issues that are the most likely and could cause the greatest effect, as well as those issues lower down the priority list that could have their risk factor reduced by a simple (and cheap) change in process or training. The picture (above) gives an example of risk – ask yourself if there is a low, medium, or high risk of a pollution event or health and safety issue here? Should your business suffer its worst case scenario, such as flooding or a fire, you need to ensure you have a continuity plan. Will your insurers help you in times of most need? Can you continue to trade and make money within days of this catastrophic event or will it take you months to get back on your feet again? All of these questions need reviewing and changes need to be made if needed. Plenty of professionals can assist you with this, and some will charge considerably, but in most cases it is little more than establishing a regular routine of checking the business, making sure employees are trained and aware of all the risks, establishing safe processes and practices, and recording everything you do. Your insurance company could assist as they have a financial incentive to make sure your businesses are clean and safe. So stay safe, stay clean, stay professional and stay profitable. ■ Aviva will be leading a Health and Safety seminar at the CARS show in June 2012. The CARS show is being run in conjunction with the International Round Table on Auto Recycling – www.irt-autorecycling.org for more details and booking information. Andy Latham is Compliance Manager for Bluecycle, one of the UK’s leading online car salvage auction sites and online auction technology specialists. They have been trading for over 10 years and specialize in car salvage, end of fleet, motorcycle, plant, equipment and commercial salvage, selling hundreds of vehicles each week to customers throughout the UK and Europe. March-April 2012 | Automotive Recycling 61 International Auto Recycling Reports from Around the World CAA Survey Highlights Public Misconceptions on Vehicle Recycling By Steve Fletcher, Executive Director, Automotive Recyclers of Canada (ARC) he Canadian Automobile Association (CAA) has begun to work with the Ontario Automotive Recyclers Association (OARA) to improve the recycling of end-of-life vehicles. Part of that work included a large survey of their members and the motoring public. With 1 in 4 Canadian drivers a CAA member, the club is the largest voice of vehicle owners in Canada. The survey was conducted by Harris/ Decima, one of Canada’s leading polling firms, on behalf of CAA its nine member clubs across Canada. CAA regularly polls its members and the public to help with policy making decisions. Over 5,000 people were surveyed regarding undriveable vehicles and vehicle disposal. “The research was undertaken in an attempt to put numbers to what we already figured was public perception. Most people think there is legislation around vehicle recycling,” said Teresa Di Felice, Director of Government & Community Relations for CAA South Central Ontario (CAA SCO). T 62 Automotive Recycling | March-April 2012 Steve Fletcher, Executive Director of OARA said, “These results help us show that the issue resonates with the public. In all my years in the industry I have never seen anything like this data. It’s very helpful to have data to back up what we have been saying for years.” The survey asked what people do with their cars when they are no longer driveable. The majority either trades it in, or has never disposed of a vehicle before. The minority drops it off at an auto recycling facility or scrap yard. “We have a pretty strong Autogreen environmental program,” says Di Felice. The Autogreen environmental program is a CAA SCO initiative to help members understand the impact their cars have on the environment and to encourage its members and motorists in general to lessen that impact. However, the public knows very little about end-of-life vehicles and their impact on the environment. “We wanted to take a cradle-to-grave approach on vehicle ownership and we used the survey as a tool to ask members what they know,” says Di Felice. “With Autogreen and OARA it makes a lot of sense. There are things people can do to lessen the impact on the environment. People think end-of-life vehicles are taken care of properly. This survey helped us cement our position on policy regarding vehicle disposal.” OARA is leading a coalition working towards a standards-based licensing scheme for the auto recycling industry. Other members include CAA, the Canadian Vehicle Manufacturers Association and the Association of International Auto Manufacturers of Canada. At a press conference last summer with OARA and the CVMA, Nick Parks, President and CEO for CAA SCO noted, “An environmental standards based approach to end-of-life vehicle management is consistent with the CAA’s overall approach to reducing the environmental impacts of automobile transportation. It complements our Autogreen program which provides our members with resources and choices to help them become more eco-friendly drivers. That the environmental standards approach means no new costs to automotive consumers is an added bonus.” The partnering with CAA is an extension of OARA’s industry and public engagement strategy. “By aligning ourselves with organizations like CAA, the OEM manufacturers, and key environmental groups, we make our voice stronger and we are beginning to be heard,” said Steve Fletcher. ■ Capitol Connection By Elizabeth Vermette, ARA Director, Government Affairs elizabeth@a-r-a.org Congressional Highlights Bill to Reduce Design Patent Protections for OEM Crash Parts Introduced in the House bill introduced in the U.S. House of Representatives reduces the period during which car companies can enforce their design patents on collision repair parts against aftermarket manufacturers. The Promoting Automotive Repair, Trade, and Sales (PARTS) Act amends title 35 of U.S. design patent law to reduce the period of design patent protection for automakers from the current 14 years to just 30 months. Under the PARTS Act, the 30 month period would commence as soon as a particular car model (containing a design- A patented part) is introduced anywhere in the world. In addition, the patent protection period would only apply to the sale of the parts, allowing aftermarket manufacturers to produce, test, market and distribute parts pre-sale without infringing upon the design patents. PARTS was introduced by House Judiciary Committee Members Darrell Issa (R-Calif.) and Zoe Lofgren (D-Calif.). The bill is supported by insurance associations and the Quality Parts Coalition. IRS Rules in Favor of Small Businesses for Tax Year 2012 ARA Supports the Jobs and Premium Protection Act n mid-February, Illinois Republican Congressmen Aaron Schock and Bobby Schilling introduced the 1099K Overreach Prevention Act (H.R. 3877), which would prohibit the U.S. Internal Revenue Service (IRS) from implementing a new tax reporting requirement included in The Housing and Economic Recovery Act of 2008. Under the 2008 Act, the IRS is required to collect a new document known as a 1099K from third party payment entities, such as credit card companies. The 1099K will show all credit transactions with a merchant’s business for a given year. According to the new bill’s sponsors, however, the new form would add additional burdens on small businesses by requiring them to reconcile this report with the merchants’ own internal numbers, which was not the original intent of the law. Senators Thune (R-SD) and Cantwell (D-WA) have also joined Reps. Schock and Schilling to permanently remove this requirement with companion legislation (S. 2083) that will ensure that should the IRS choose to invoke this provision in the future, small businesses will remain protected from complying with this nuisance paperwork provision. ARA strongly supports these efforts. T I he Jobs and Premium Protection Act, legislation to repeal the Health Insurance Tax (HIT) now has more than 112 co-sponsors. If passed, the bill will bring relief to millions of small busi- nesses nationwide, by preventing the recently passed HIT from collecting billions of dollars from their operations beginning in 2014. This is one of several small business issues that ARA members will be lobbying for on Hill Days in March. ■ State Legislative Sessions in Full Swing t has been a busy legislative session to date. Forty-four states have been in session and all states meet in 2012 except for the four states that don’t meet in even number years: Montana, Nevada, North Dakota and Texas. ARA is currently tracking more than 100 bills across the country related to automotive recycling. Some examples follow: Sent letters of support for Colorado HB STATES ON THE MOVE 1051 sponsored by the Colorado Automotive Recyclers. Current Colorado law only allows vehicles manufactured between 2012 and 2007 to be titled as salvage vehicles. Vehicles older than six years can currently be sold on a clear title even with substantial damage. These vehicles may be sold through salvage pools, repaired cosmetically and sold to unknowing consumers who end up driving dangerous vehicles. House Bill 1051 eliminates this exemption and applies the same salvage definition to all vehicles. Status: Bill died in committee. Sent letters of support for New Mexico SB 122 sponsored by the New Mexico Automotive Recyclers and LKQ. SB 122 prevented unlicensed and untrained individuals from purchasing vehicles at salvage pool auctions. Status: Bill was moved to a study committee. Sent letters of opposition for Ohio SB 273 that eliminates the BID card in Ohio. Status: Opponent testimony scheduled for March. Sent letters of opposition for Hawaii HB 2326 that would have required insurance companies to only use new OEM parts in all collision repairs if a vehicle was under warranty. Status: Bill removed from committee agenda and died. I March-April 2012 | Automotive Recycling 63 Crossword Puzzle By Murray Jackson Across 1. ‘09 Chevrolet crossover 5. Long dragster with minimalist body 9. Bright tuner-car trim, slangily 10. Rock group's tour-bus passengers 11. Main or Sesame 12. Ominous engine sound 14. ‘66-'74 Lotus sports coupe 16. Treadless dragster tires 19. “Miami Vice” Caddy-ragtop driver 21. Item in 20-Down vehicle 24. Car-body style (3,4) 25. Chopper rider 26. Cadillac color in Springsteen song 27. Corvette model 64 Automotive Recycling | March-April 2012 Down 1. Item once found in car tire 2. ‘03-’05 Lincoln SUV 3. Former AMC and Chrysler brand 4. Mr. MacPherson’s suspension inventions 6. Defunct Isuzu for a Spanish pal 7. ‘60s “Screamin’ tires and bustin' glass” song (4,4) 8. Surname, rotary-engine inventor Felix 13. Brief road-trip pause (4,4) 15. Engine item with skirt and rings 17. Defunct Kalamazoo-based taxi maker 18. ‘80s AMC and ‘90s Dodge model 20. UPS truck color 22. Batmobile occupant 23. A&W carhop’s cargo, once 2012 Industry Calendar To include your event in ARA’s calendar of events, e-mail the complete listing to Maria@a-r-a.org. Visit www.a-r-a.org for the most up-to-date calendar. March April 14-16 ARA 2012 Hill Day - Business Development Conference Elizabeth Vermette (571) 208-0428, Ext. 18 elizabeth@a-r-a.org www.a-r-a.org 12-15 2012 URG/Pinnacle Training Conference The Inverness Hotel Englewood, CO (800) 346-4891 or (800) 397-6400 Group Code: 2PL1U7 Michelle Alexander (303) 367-4391 URGConference@hotmail.com 15-17 Greater Midwest Automotive Recycling Expo Holiday Inn Downtown Lincoln, NE www.ari-ne.org 21-23 12th International Automobile Recycling Congress Hotel InterContinental Budapest, Hungary Phone: +36 1 327 6333 Fax: +36 1 327 6357 www.ichotelsgroup.com/ intercontinental Contact: Claudia Gerstendoerfer Phone: +41 62 785 10 00 www.icm.ch/iarc-2012 23-24 IT Show Location: M & S Auto Parts 155 Roberts Rd. Fayetteville, GA 30214 Contact Bill or Susan Weaver (800) 525-2898 bill.weaver@autocycleparts.com www.meetusatit.com 29-31 Ontario Automotive Recyclers Association OARA Annual Convention & Trade Show Toronto Airport Marriott Hotel Reservations: (800) 905-2811 Information: Steve Fletcher (519) 858-8761 steve@oara.com A limited number of rooms have been reserved for the Convention at the Marriott Toronto Airport Hotel. Please contact the hotel directly at 1-800-905-2811 and quote the “Ontario Automotive Recyclers Association” to receive the group rate of $129 per night. The group rate is subject to availability and is valid until March 9, 2012. 19-22 Florida Tow Show International Expo Orlando, FL Host Hotel: Hilton- (407) 827-4000 Information (407) 296-3316 www.pwof.org 20-21 Automotive Recyclers of Michigan (ARM) 4th Annual Road Show & Business Networking Conference Location: Fox Auto Parts 8111 Rawsonville Rd. Belleville, MI 48111-9317 Barb Utter (800) 831-2519 arm@mi.automotiverecyclers.org 21-22 Saskatchewan Automotive Recyclers Association (SARA) & Automotive Recyclers of Canada (ARC) Member & Board Meetings Regina Hoiymr (306) 751-1787 www.autorecyclers.ca 24-26 2012 SAE World Congress The Essential Automotive Technology Event Cobo Center, Detroit, MI www.cobocenter.com Phone: 1-877-606-7323 (USA and Canada) Or: 1-724-776-4970 (outside of USA and Canada) Fax: 1-724-776-0790 E-mail: CustomerService@sae.org Detroit Marriott at the Renaissance Center 100 GM Renaissance Center Detroit, MI 27-28 Alberta Automotive Recyclers & Dismantlers Association Meeting and Conference Chateau Louis Hotel and Conference Centre Edmonton, Alberta Ian Hope (780) 478-5820 www.aarda.com Ad Index Actual Systems of America, Inc./Pinnacle .........35 Alter Trading Corporation ......................................29 ARA University..........................................................15 ARA 69th Annual Convention & Exhibition ........13 Biz Unite.....................................................................21 Brock Supply Co. .....................................................32 Car-Part.com..........................................................C-4 Connection, The .........................................................5 CRUSH/S3 Software Solutions, LLC.....................48 Federal Autocat Recycling .....................................37 Hybrid Vehicle Dismantling Guide........................17 Hollander, a Solera company ............................ C-3 Industrial Netting.....................................................31 Knopf Automotive ......................................................6 Lamb Fuels ...............................................................42 MarkingPenDepot.com...........................................60 Mike French & Company, Inc. ................................51 OmniSource ..............................................................57 Phoenix Automotive Cores ....................................45 RAS .............................................................................41 Sierra International Machinery ..............................9 Supershear ................................................................31 United Recyclers Group........................................C-2 Vander Haag’s, Inc...................................................65 Wells Fargo................................................................11 Get Ahead in 2012 Empowering Your Team To advertise, call Caryn Smith at (239) 225-6137 Answers from Puzzle on page 60 27-28 Upper Midwest Auto & Truck Recyclers Convention/ Trade Show Ramada Plaza Minneapolis For reservations: www.ramadaplazampls.com 1330 Industrial Blvd. Minneapolis, MI www.recyclersconvention.com 28 BC Auto Recyclers (B-CAR) Meeting Ken Hendricks (604) 419-4826 www.ara.bc.ca/div-bcar Location: TBD Send your 2012 events for the Industry Calendar to maria@a-r-a.org. March-April March-April2012 2012 | Automotive Recycling 65 Final Thoughts By Michael E. Wilson, ARA Chief Executive Officer michael@a-r-a.org Safety First s part of our on-going commitment to health, safety and the environment, the Automotive Recyclers Association (ARA) is moving forward with the formation of a new “Safety Committee.” The establishment of this Safety Committee comes after extensive discussions about how best to support ARA members in their efforts to provide safe workplace environments for their employees. Members of this committee will review recent safety-related developments in the automotive recycling industry and promote plans to help members address these issues. ARA will also represent the interests of automotive recyclers to the U.S. Occupational Safety and Health Administration (OSHA) as new safety standards are established. In fact, just this past January, OSHA issued a White Paper supporting the development of a standard requiring Injury and Illness Prevention Programs (I2P2) claiming that research indicates that such programs reduce injuries, illnesses and fatalities. Based on this research and analysis of employee safety data, OSHA also has taken the first step toward drafting a proposed rule establishing an I2P2 standard which will most likely be published sometime later this year. If developed and implemented, this I2P2 rule has the potential to significantly alter the core of today’s business safety programs. Also, the Safety Committee’s importance is reinforced by recent related events in the industry. Over the past several months, OSHA has initiated several local initiatives to address safety compliance within industries which have been identified as having a higher number of serious hazards based on the number of violations during an OSHA inspection. A number of automotive recycling facilities in the Northeast region of the iStockphoto.com/jinglv li A 66 Automotive Recycling | March-April 2012 United States and other locations around the world have had several thousands of dollars in fines issued for failing to meet requirements related to workplace safety inspections. In light of these circumstances, the Committee will hit the ground running by reviewing and developing safety alerts on compliance issues that have been identified as areas of concern during recent OSHA inspections at automotive recycling facilities. To date, the highest level of activity has taken place in the Northeast. However, it is likely that OSHA’s compliance and enforcement actions will extend throughout the United States. It is important to note that the role and importance of the Committee’s work will go beyond the borders of the United States. In February, the press reported that the Canadian Centre for Occupational Safety and Health (CCOSH), the equivalent agency to OSHA in the U.S., had placed a stop work order at one Alberta facility. The efforts of this new Safety Committee will complement the efforts already undertaken by ARA and our Educational Foundation (ARAEF) on safety awareness and education. Earlier last year, ARA University added new safety courses encompassing topics such as fall protection, personal protective equipment, hand power tools, scaffolds, hoists and stairways. This month, the ARA University is set to release an additional eight courses that will include modules covering Aerial Lift Safety, Back Safety, Bloodborne Pathogens, Electrical Safety, Hearing Safety, Hoists & Slings, Lockout Tagout, Machine Guarding and others. Safety education has also been showcased at our recent Convention & Exposition in Charlotte, during which ARA held two safety educational sessions related to safety management and yard layout. It is anticipated that the number of safety sessions will expand to four at this year’s event to be held in Orlando, Florida. Additionally, ARA with the support of Wells Fargo Insurance Services (WFIS) released our revised “Employee Safety Brochure” that contains guidelines that if properly and consistently implemented, should diminish unsafe operations and reduce accidents. In 2012, ARA and our endorsed insurance provider, Wells Fargo Insurance Services, plan to also provide a Spanish version of this important safety resource. In this era of instant communication and availability of site-specific data, it is crucial that one knows exactly what safety standards and regulations apply to your facility and adequately address them. ARA continues to provide the tools to help keep members and their employees safe while working to protect and promote your businesses. From the emergence of this new committee and the Foundation’s courses to the educational sessions at our convention, your ARA is here to support your safety needs. I look forward to offering ARA members yet one more reason to continue to be a part of such a great group of business leaders. ■ Automotive Recyclers Association 9113 Church Street Manassas, VA 20110-5456 USA