February 2009 New England Automotive Report

Transcription

Labor Rate Commission Report Prompts Hope, Apprehension - pg. 44
Serving The New England Collision AND Mechanical Repair Industry
MASSACHUSETTS/
RHODE ISLAND
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2 February 2009
New England Automotive Report
February 2009 3
4 February 2009
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AUT M TIVE
MASSACHUSETTS/
RHODE ISLAND
EXECUTIVE DIRECTOR’S OFFICE
9 Bartlet Street #143
Andover, MA 01810
Phone: 978-749-9695
Fax: 978-749-0687
email: pabdelmaseh@yahoo.com
website: www.aaspmari.org
ASSOCIATION OFFICERS
PRESIDENT
Rick Starbard
VICE PRESIDENT
Bill Cahill
TREASURER
Russell Bradway
SECRETARY
Gary Cloutier
MECHANICAL DIRECTOR
Bob Baylis
COLLISION DIRECTOR
Alex Falzone
ASSOCIATE DIRECTOR
Michael Coran
NORTHEAST CHAPTER DELEGATE
Alex Falzone
EDUCATIONAL DIRECTOR
Jeffrey Choy
GENERAL DIRECTORS
Russell Hamel
Brian Hohmann
Butch Rand
Mark Millman
EXECUTIVE DIRECTOR
Peter Abdelmaseh
CONTENTS
February 2009 • Volume 7, Number 2
Technical Spotlight
18 Lawsuit Wanted?
by Mark Giammalvo
IN MEMORIAM
19 Peter Abdelmaseh Sr.
33 Francis “Fran” Ricci
Guest Editorial
21 CIC’s Fair Trade Practices Proposed List of DRP Criteria Would
Further Erode True “Fair Trade” in the Collision Repair Business
Reprinted with permission from the CCRE
AASP Member Benefit Update
22 Mitchell 1/AASP Affiliate Program Prospers Into Seventh Year
by Joel Gausten
On the Lift
23 Your Biggest Competitor
by Leon Bousquet
Tech Feature
26 The Theory of EME+54 = Proper Repairs: The Lack of Basic
Estimating Procedures Can Kill Your Productivity! Part Two of a Two-Part Series
by Larry Montanez III, with Peter Pratti Jr.
Cover Story
35 Auto Body Reform 2.0: AASP MA/RI Responds to the Special Commission’s
PUBLISHER
Thomas Greco (tgp22@verizon.net)
MANAGING EDITOR
Alicia Figurelli (tgp2@verizon.net)
EDITOR
Joel Gausten (tgpjoel@verizon.net)
ADVERTISING DIRECTOR
Norman Morano
(800)991-1995 (tgp5@verizon.net)
ART DIRECTOR
Lea Velocci (tgp3@verizon.net)
PRODUCTION MANAGER
Megan Maletich (tgp4@verizon.net)
CONTRIBUTING EDITORS
Rick Starbard • Bill Cahill • Peter Abdelmaseh •
Leon Bousquet • Mark Giammalvo
Published by: Thomas Greco Publishing, Inc.
244 Chestnut Street, Suite 202, Nutley, NJ 07110
Corporate: (973) 667-6922 / FAX: (973) 235-1963
Advertising: (732) 280-6000 / FAX: (732) 280-6601
Report, Refiles Labor Rate Bill
by Joel Gausten
CMARA Update
44 Labor Rate Commission Report Prompts Hope, Apprehension
by Joel Gausten
PLUS:
6 Executive Director’s Message
46 Index of Advertisers
New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New
England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas
appearing in this magazine are not necessarily representations of TGP Inc. or of AASP MA/RI or CMARA. Copyright © 2009 by Thomas Greco Publishing, Inc. Cover image ©istockphoto.com/DNY59.
February 2009 5
Executive Director’s Message
AASP MA/RI 2009
Legislative Initiatives
Off to a Great Start
Peter Abdelmaseh
Activities and events during the final months of 2008 and
the first month-and-a-half of 2009 have provided an opportunity
for AASP MA/RI to get our legislative initiatives – the Auto Body
Labor Rate Bill and the Massachusetts Right To Repair Plus (+)
legislation – into prominent positions at the State House. Your
AASP MA/RI leaders have been working overtime to move both
of these bills forward on Beacon Hill. The change of leadership
in the House of Representatives as well as the many changes on
key committees looks, at this moment, to be generally positive
for us. But, as it always is in politics, time will tell. Here’s a brief
description of our situation on both of our bills:
Auto Body Labor Rate Bill
AASP MA/RI and CMARA have resubmitted the Auto Body
Labor Rate Bill into the state legislature for the 2009-2010 session. We submitted the version of our bill that passed through the
Senate during budget deliberations. For strategic purposes, the
bill was introduced by one senator and one state representative in
order to provide us with options available to us when the session
gets into full swing.
Most significantly, AASP MA/RI and CMARA have both
engaged the services of a prominent lobbying firm to work on
behalf of the industry to get this legislation passed into law. Marty
Corry of Corry Associates, LLC will represent the collision industry on Beacon Hill. We are currently working with Marty to refine our strategy during this legislative session. His experience
in getting important bills passed in the legislature is a source of
comfort for us, as we were not able to get a “seat at the table” in
the final moments of the previous session. Marty is excited to be
representing our industry and feels that we have a lot to build
upon from our past efforts.
To say that the Auto Body Labor Rate Bill that AASP MA/RI
and CMARA introduced got a lot of attention on Beacon Hill is
an understatement. Because of the great work done by so many
of you in the collision industry – making phone calls, sending letters, going to the State House, etc. – it would not be a stretch of
the imagination to say that EVERY legislator had more than their
fair share of knowledge about the number one problem that you
face every day in your shops.
Three very important things emerged from our efforts on this
legislation over the past two years. The first one is that when you
focus an entire industry’s efforts on one goal, you get the undivided attention of everyone. I dare say that if you played a word
association game with every legislator on Beacon Hill and you
mentioned the words “body shop,” all of them would answer,
“Labor Rate.” That’s what you get when you focus on one goal.
The second important result of our efforts in promoting the
6 February 2009
Labor Rate Bill is that we began to understand the power that our
industry can have at the State House if we just work together in
a planned and coordinated fashion. Just take a glance backwards
for a moment and look at what we did. First, we put forth an excellent piece of legislation that was worthy of widespread support from within the industry. The bill offered an opportunity to
every collision shop owner to get on the path to “fairer” Labor
Rates and, considering that nothing had been done for so many
years on this front, this legislation certainly represented a breakthrough for a battered industry.
Next, we got approximately 300 shop owners behind the effort and, through clear and efficient communications, they responded by letting every legislator know that there is a serious
problem in the collision industry in Massachusetts and the Auto
Body Labor Rate Bill addresses this problem. Because of those
shop owners, as well as their spouses, managers, and staff, we
established a grassroots effort that included well over a thousand
people who turned a good idea into a tidal wave of support for our
legislation. As this wave continued, we were able to pinpoint
many people from within our industry who had significant connections to their local politicians. And, the constant contact between collision industry professionals and legislators was a key
component in the building of our industry’s power base.
Lastly, the whole process of moving the bill forward presented our industry with the opportunity to fully explain our most
pressing problem to the people who can do the most to help us
solve it. Until we began this effort, the Labor Rate problem for
auto collision shops was just a whisper in the background, taking
place only amongst a few shop owners. By the time the “special
commission” submitted the final report to the governor and legislature, more than 300 pages of written testimony had been
placed in the public record by both sides on this issue. Insurance
companies admitted, in an almost apologetic tone, that Labor
Rates have been suppressed in Massachusetts for a very long time
and now accept that they must do something about them. Time
will tell.
Massachusetts Right To Repair Plus (+)
For the 2009-2010 legislative session, your AASP chapter
has taken a completely new approach to the “Right To Repair”
problem for both the mechanical repair and collision repair industries. Recently, our Vice President, Bill Cahill, realized that
changes in automotive technology could make passage of any of
the similar bills - even the one we had introduced into the Massachusetts legislature - basically worthless to consumers and to
the independent automotive aftermarket. He began speaking
continued on pg. 10
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February 2009 7
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February 2009 9
Executive Director’s Message
continued from pg. 6
about his ideas, but those who wished to maintain the status quo
on this issue (for either personal gain or other reasons) dismissed
them. After several face-to-face conferences and telephone calls
left him feeling that a big opportunity could be wasted, he crafted
a new bill that we now call “Right To Repair Plus (+)” based on
an entirely different premise from all of the others.
This new bill was introduced into the state legislature by
AASP MA/RI through the sponsorship of Rep. James O’Day of
Worcester for the 2009-2010 session. This legislation proposes to
define and grant to Massachusetts’ consumers new privacy rights
in, and access rights to, the data stream that is produced in each
vehicle. By establishing these rights as owned, in entirety, by consumers, they can be assigned to the repair facility of choice, either
a dealership or an independent repairer. But, access to the data
stream must be complete.
Your AASP chapter, in support of the thousands of people
who make their living “in the bays” repairing vehicles, filed this
new, innovative legislation. In distinguishing it from the old bills,
it is called “Right To Repair Plus (+),” with the “plus” designating “Consumer Ownership Rights.” You may wonder if all of this
is just a word game, but please be assured that it is not. As the result of two of our people in just three days of discussing this bill
with legislators at the State House, 35 of the approximately 50
legislators we met have signed on to be co-sponsors. That is an astonishing level of support, especially since it was achieved with
no outside help. Just a couple of guys telling the truth. You get
10 February 2009
the point.
Massachusetts Inspection Program and Other Issues
AASP MA/RI has been a participant in the deliberations over
the latest Massachusetts vehicle inspection program since late
2007. The program was implemented, on time, on October 1,
2008, and is being administered by the state Registry of Motor
Vehicles (RMV). The process is pretty much set by the Registry
and the Massachusetts Department of Environmental Protection
(DEP), and they gather input from organizations representing the
repair industry, like AASP MA/RI.
Many of our mechanical members are considered the “hightech” repairers of the state, and participate in the program primarily as “registered repairers,” meaning that they are the shops at
which complex vehicle repairs requiring a high level of expertise
and investments in training and equipment are performed. Therefore, the position of the association in these deliberations was to
promote the opportunity that “registered repairers” be given a priority position for the “open” inspection station licenses that were
abandoned by those in the expired program.
We can report to you that we have worked hard on this project with several of us in attendance at each meeting. We have
sought to “upgrade” the required level of expertise at the inspection stations and have promoted the idea that, if more registered
repairers are licensed as inspectors, then fewer vehicle owners
would be “rejected,” since repairs could be performed on premises. Additionally, it would be more convenient for those vehicle
continued on pg. 16
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February 2009 13
14 February 2009
February 2009 15
Executive Director’s
Message
owners, as well.
At this writing, the Registry has not
yet fully implemented the “waiting list”
program, thus we cannot give you a true
progress report. However, we know that
they have heard us and, in private conversations, they understand and accept
our position. We will have to wait until
at least the spring to see if our efforts on
your behalf have been successful. But,
please know that we are working for
you.
We are in the process of building
new collision and mechanical chapters
around the state and are talking with
people who would like to become members of our Board of Directors. AASP
MA/RI is the fastest-growing automotive organization in New England, and
that is because of people like you. If you
own or operate a collision repair shop or
a mechanical repair shop and would like
to “step up” and represent the industry,
please get in touch with us. While we
have met many smart and good people
over the past years, we know there are
many more of you out there. AASP
MA/RI does not operate like a closed
club. We welcome new ideas, many of
which become important causes for our
organization as well as the entire automotive aftermarket in Massachusetts.
We are gratified that so many people like you have said, in ever-growing
numbers, that the time to move the industry forward is now. Technology is
not something to be feared; it is to be
embraced as the cornerstone of new opportunities. However, an organization
like AASP MA/RI is there for times
when technologies or markets are manipulated in ways that restrict access for
all industry participants. Certainly, one
or two small companies cannot fight
those forces alone. Heck, that’s a difficult task for organizations our size and
even larger ones. However, your Association will continue to work hard and
intelligently on your behalf, and continue to tell truth to power, whatever the
consequences. We’ll do that in 2009,
and for many years to come. Thank you
for that opportunity.
Mass./Rhode Island
16 February 2009
February 2009 17
Technical Spotlight
Lawsuit Wanted?
Mark Giammalvo
Want to avoid a future lawsuit? Just be especially careful
when drafting your next “Help Wanted” newspaper ad.
I’ll bet those two sentences really got your attention. How
could you possibly get sued for placing a “Help Wanted” ad in
the newspaper? Read on, my friends, read on.
Last year, we decided to place an advertisement with our
local newspaper for a part-time employee. Employee job tasks
would includ picking up and delivering parts, customer service,
handling bank transactions and light building maintenance. In the
past, when we ran an ad for this position, retired male workers
typically applied for the job. As a result, our most recent advertisement draft had a line similar to: “Perfect job for a retired worker.”
Before the advertisement went to print, we received a call from
the newspaper editor stating that, we would have to reword the
advertisement. Why? It appeared that, in our highly litigious society, stating “retired worker” will be interpreted by some readers
as: “We won’t higher younger workers that are not yet retired.” I
must be naïve, but I guess there are a lot of people out there thinking, Can I sue them for discrimination because of this ad’s wording? Perhaps I can make some money off these guys. How deep
are their pockets? Anyway, we changed the ad to an acceptable
version, and I had soon forgot the issue.
Being a subscriber to a Vermont weekly newspaper, I recently
again came across this topic. This time, it was definitely headline
news. The article I am referring to was written recently by Ken Picard of the Vermont newspaper Seven Days. I learned that Seven
Days, Vermont’s Times-Argus and the Rutland Herald were all accused by the Housing Discrimination Project of Holyoke, Ma. and
Vermont Legal Aid for publishing allegedly discriminatory language in their classified ads.
To step back a bit, Ken also learned that, five years ago, Seven
Days was notified that some of its housing ads included objectionable language, such as “professional couples preferred” and
“no students.” As a result, the paper agreed to run three years of
free fair-housing notices. Worse yet, although the paper received
training on this issue from the Champlain Valley Office of Economic Opportunity, it was still discovered that 10 discriminatory
ads out of approximately 20,000 had made it to print in a twoyear period. After a lengthy negotiation process, Seven Days was
hit with $45,000 in fines, including $30,000 in free advertising
over 24 months. In addition, the paper incurred more than $2,500
in legal fees.
18 February 2009
Out of the 10 allegedly discriminatory ads, six had set a limit
on the number of residents allowed, with wording such as “single
occupancy only” and “two-person maximum.” Two ads stated
“adults’ apartment” and “quiet adults desired.” One ad stated “not
Section 8 approved.”
One listing, read as “charming, two-bedroom apartment . . .
off-street parking for two cars . . . ideal for a couple.” Ken stated
that, if the advertisement had been worded “ideal for a family,” it
would have been acceptable. Ken also stated that: “. . . None of the
ads that got Seven Days into trouble made reference to race, color,
religion, ethnicity, gender, disability or sexual orientation . . . ”
Interestingly, wording such as “Se habla español” is acceptable, since it’s considered “inclusive” language (this is because
people other than Latinos may also speak Spanish). Oddly, if an
advertisement read as boldly as “no fat people,” this is technically
acceptable because it doesn’t use the forbidden term “morbidly
obese,” which is a recognized disability under the Americans With
Disabilities Act (ADA). Additionally, “Gays and lesbians welcome!” doesn’t break any state or federal laws. However, “gays
and lesbians desired” would be a violation of Vermont law because it expresses a preference based on a tenant’s sexual orientation.
Ken also discovered that, several years prior, the Southern
California Community Newspapers incurred more than $100,000
in legal fees and were forced into bankruptcy for running a single
ad that read “adults preferred.” This lawsuit resulted in the elimination of more than 100 jobs. Ken also noted that free websites
such as Craigslist.com and Roommates.com are held to a lower
legal standard, and that often, even when their users violate state
and federal fair-housing laws, the websites themselves are held
faultless. In the past, Craigslist was sued by several Chicago attorneys for posting discriminatory ads. Some of the ad postings in
question read “only Muslims apply” and “no minorities.” However, this year, a 7th Circuit Appellate court upheld a lower court
ruling that stated that Craigslist cannot be held liable for any discriminatory wording posted by their users. It appears that in the
world of law, print advertisers are held liable for the content of
their customer’s ads, while Internet advertisers are held harmless
from the content of their customers’ ads. It is an odd, yet large,
legal discrepancy. The rationale of all this? Craigslist does not review or edit its users’ content. In plain English, its considered a
bulletin board, not a publication. Perhaps the newspapers should
refrain from editing the content of their advertisers ads? Oh, no,
what was I thinking? That’s what got them sued in the first place.
Confused yet? So am I.
Another large issue regarding the liability of newsprint is
that neither the courts nor the federal government have provided
clear and specific and guidelines for what is considered a discriminatory advertisement. In the article, Fair Housing Advocate
Jamie Williamson told Ken that the best way to write a housing
ad and not get sued is to describe only the unit, and not the potential tenant.
Still, find this legalese even more confusing? How about an
ad stating, “House on busy street with no sidewalks.” One might
say that this is just viable information listed so that the future
renter, be it a family with young children or a retired single person, may make an informed decision. However, according to
Williamson, this, too, would raise a red flag: “Right off the bat,
if you said, ‘House on a busy street,’ what that ad says to me is,
‘For those of you who have children, don’t bother to apply . . . ”
After reading Ken’s article, to apply that same methodology
to our future advertisements for help we had better make sure we
describe only the job and not the potential employee.
Hmm, I wonder if we can purchase a rider for additional insurance to cover lawsuits over future print ads.
Mass./Rhode Island
In Memoriam:
Peter M. Abdelmaseh Sr.
Peter M. Abdelmaseh Sr., father of
AASP MA/RI Executive Director Peter
Abdelmaseh, passed away peacefully
on December 16. He was 93.
Born in Worcester, Abdelmaseh
served his nation proudly in the United
Stated Navy during World War II. During his time in the Navy, he was a Signal Man 1st Class aboard the USSYMS
329. He was the owner of Billings Auto
Supply for over 46 years. In his time
away from work, he was an avid golfer
Peter Abdelmaseh Sr. and a former member of the Wachusett
Country Club and Pleasant Valley
Country Club. He was also a member of the Guiding Lights
Masonic Lodge, formerly known as the Athelstan Masonic
Lodge.
Abdelmaseh is survived by his two sons, Peter Abdelmaseh and Mansour Ansari, daughters June Kuzmeskus and
Susan Latuga, seven grandchildren and four great-grandchildren. His wife of 34 years, Lily (Sear) Abdelmaseh, passed
away in 1980. AASP MA/RI and New England Automotive Report offer the Abdelmaseh and Ansari families our deepest sympathies.
February 2009 19
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Guest Editorial
CIC Fair Trade Practices Proposed list of DRP Criteria
Would Further Erode True Collision Repair “Fair Trade”
Shops’ DRP relationships with insurers
foster, support and promote insurer steering
of repairable vehicles. Though the vast majority of collision repairers understand this,
it seems that this simple concept remains
lost to the minds and/or aspirations of the
leaders of the Collision Industry Conference’s (CIC) so-called Fair Trade Practices
committee. This disconnect becomes evident in the wording of CIC’s recently proposed 14-point Direct Repair Criteria list.
It would therefore appear that the true
goal of CIC’s latest proposed repair criteria
is to continue to promote the personal interests of some of CIC’s participants and administration. The practice of writing and
rewriting proposals in hopes that the insurance industry will comply has never accomplished anything positive for the collision
industry, and it never will.
Many DRP shops are among those
complaining about insurer steering practices
against them. And yet, in spite of the fear
and intimidation that keeps many of them
tied to their DRPs, any knowledgeable DRP
shop owner knows that it is his compliance
as a DRP that guarantees that insurer steering remains profitable for insurers.
Though insurers have attempted to “legitimize” what was once considered an “illegal” practice (by writing policies that
demand policy holders to patronize insurer
shops with DRP agreements), CCRE maintains that these now “legitimized,” formerly
illegal practices are still un-American, defying the concepts of “free trade” and stifling
competition in our typically Capitalistic society. How is it that we now have the North
American Free Trade Agreement (NAFTA),
which allows free trade to flow from Canada
through the United States and into Mexico,
and yet we have NO “Free Trade” within
our own “free” country in reference to insurer interference in the collision repair business, and several others?
The time is now for OUR COLLISION
INDUSTRY to stop feeding the insurance
industry’s steering machine through participating in DRPs. The time is also now for
CIC-type groups to cease from facilitating
insurer abuses through recognizing Direct
Repair and the many things it promotes as
being in any way legitimate. CIC’s even
considering such a proposal as this so-called
Direct Repair Criteria (coming from an or-
ganization that proclaims to be promoting
“fair trade practices” for the collision repair
industry), is even more detrimental to the
collision repair industry than the DRP concept itself.
The Code of Ethics produced by attorney Erica Eversman is a workable “Best
Practices” that the collision industry can
adopt.
Those interested in overcoming abuses
against the collision industry should contact
the CCRE (the Coalition for Collision Re-
pair Excellence) toll free at 877-700-7743,
or at its website www.theccre.com. The
Coalition for Collision Repair Excellence
(CCRE Ltd.) is the only coalition of consumer-oriented shops dedicated to qualityminded independence.
This article reprinted with permission from the Coalition For Collision Repair Excellence (CCRE).
February 2009 21
AASP Member Benefit Update
by Joel Gausten
Mitchell 1/AASP Affiliate Program
Prospers into Seventh Year
In 2002, AASP National partnered
with Mitchell 1 in an effort to provide state
affiliates with high quality automotive aftermarket/repair and estimating information and repair shop management systems.
The union was one in a series of initiatives
that allowed AASP to strengthen membership benefits and partner with some of the
industry’s most prominent vendors. Now,
nearly seven years since the partnership
first took flight, both AASP and Mitchell 1
are celebrating a union that continues to
provide unparalleled service to association
members far and wide.
For David Boyington, Mitchell 1’s
senior manager of corporate sales, joining
forces with AASP has providing provided
ongoing, hands-on involvement with his
company’s expanding clientele.
“Our major customer base is the independent repair facility,” he says. “AASP
has a wide audience on the mechanical
side, so it makes sense for us to participate
with those facilities. If we come in handand-hand with a respected association like
AASP, it makes the sales process easier.”
Recently, Mitchell 1 unveiled the ninth
version of its hugely successful ServiceIntelligence system. By providing a detailed
tracking of 25 maintenance items, ServiceIntelligence Version 9 creates a personalized report for each vehicle in a shop
customer’s household. Utilizing ServiceIntelligence Version 9, shops not only generate credible recommendations and build
stronger trust with customers, but also generate new, often-overlooked sources of income.
“So often, a shop will change a customer’s oil, rotate the tires and may recommend a transmission flush, but they may
overlook the air filters, fuel filters and the
timing belt,” Boyington explains. “Now,
they can look at the customer’s information
and go, ‘Wow, it’s been 75,000 miles since
we’ve done an air filter change.’ You can
also provide the customer with feedback
that says, ‘Mr. and Mrs. Smith, I’m recommending that we do an air filter not just because I want to sell you one, but because
it’s been three years and 75,000 miles.’”
Additionally, the ServiceIntelligence activation fee includes an email match service
through a shop’s management database.
This service typically finds emails for up to
30 percent of a shop’s customer database.
In addition to offering value to the industry through its unique products and
services, Mitchell 1 is also available for
seminars, workshops and other training opportunities to assist AASP members.
“If one of the chapters gets together on
a monthly basis, we can participate at that
level and provide training to them, either at
a greatly reduced fee or maybe even free,”
Boyington says.
After working with various AASP representatives for years now, Boyington remains adamant that all automotive service
shops would be well served by being actively involved in the association.
continued on pg. 33
22 February 2009
On the Lift
Your
Biggest
Competitor
In the midst of these difficult economic times, have you
ever considered just who your competitors are? My answer
will surprise you.
Consider this scenario: There are two shops, directly
across the street from one another. Both shops have five employees; both shops have the same number of bays, and the
same type of equipment. One shop is clean, well-lit and always hustling. The other has a light bulb hanging from wire
nuts, is dirty, and everyone looks depressed. One is surviving,
able to pay their bills, and the other is always struggling. How
can 2 exact facilities have such different business models?
My son, Brent, is a good soccer player. He has been selected to try out for the Massachusetts Olympic Development
Team (ODP) for 15-year-olds. The team currently has 25 players, and that will be cut down to 18. When they practice, all
the boys are nice to each other, but they also know that unless
they bump somebody out, they could be gone. It is easy to
find his competition; it is the boy next to him. What will separate him from the boy he beats out?
What do you look for in an employee? Of course you look
for skill, but you also look for a good attitude. We all know
what a bad apple does to the whole bunch. We all have stories
of the employee that disappears never to return (and you’re
left with his tool box) or is sleeping in his car when you show
up in the morning. What makes an employee a winner? It is
their attitude along with their skill. Think about it: Would you
take someone with great skills and a terrible attitude, or would
you prefer someone with less skill, willing to learn, with a
good attitude?
You started a business. You staked everything on it: Your
house, your family’s future, your income. But you did it because you knew you would make it. You had to have a positive attitude, otherwise you would have failed before you
started. Be sure that attitude is still reflected. As an employee,
would I rather work for someone that reflects that my future
is secure or the guy across the street where I have to rush to
the bank to be the first to cash my paycheck?
I started a business as well. And yes, there were times I
did not come home with a paycheck. I know that it is very difficult to survive, let alone thrive in today’s economic climate,
so do not think I am picking on new businesses. (Remember,
my model says the shops are the same.) What is true is that
only 10 percent of new businesses make it past Year Five.
Consider yourself one of the very skilled few to make it, much
as I hope my son makes it to ODP. He would be one of very
by Leon Bousquet
few, one of 18 of all 15-year-old boys playing soccer in Massachusetts. How about those odds?
Do you face the same odds; are we going down to 18
shops? Of course there will not be that few, but how many
will be the best? How many will write the best sheet, be able
to maintain good equipment, attract the best people and earn
a decent living? How many can maintain that positive attitude
even in the face of this economic downturn? How many will
make it out of the Minors and into the Majors? I can tell you
that the shops that do nothing, the shops that sit back and complain, will not survive.
Look ahead and face the future. Control change or it will
control you. Uncontrolled change is like an earthquake; the
pressure builds up and suddenly it breaks loose. All you can
do is react to the chaos that ensues. If you see it coming, and
plan on it, you can control it. There are those that hide from
change, like an ostrich. What kind of defense is it to stick your
head in the sand and hope change doesn’t find you?
My son tried three years in a row to make the ODP Team,
and this is the first time he was chosen. He did not give up; he
saw what he had to improve on and he made the adjustments.
He was able to do this because he always knew he could.
So, who is your biggest competitor? It is not the insurance industry; they do not have any body shops around here.
They may be the enemy, but they are not your competitor. It
is not even the guy across the street; if his workmanship is
lousy, he actually makes business for you. Send him a nice
“Thank You” card.
So if it is not the guy across the street and it is not the insurance industry, who is it? Who is the biggest barrier to your
success? You already know the answer.
Next time you have a moment, watch Ramsey’s Kitchen
Nightmares. Do not watch that crappy Hell’s Kitchen; be sure
it is his BBC Show, “Ramsey’s Kitchen Nightmares.” Chef
Gordon Ramsey goes into a restaurant that is failing and
points out what is wrong and what they have to do to fix it.
Watch the resistance to change he gets, even though what they
are doing has led to ruin. (Remember the definition of “Insanity?”) The restaurants are a model for every business; I hope
I can learn from their mistakes.
Mass./Rhode Island
February 2009 23
24 February 2009
February 2009 25
Tech Feature
by Larry Montanez III, with Peter Pratti Jr.*
The Theory of EME + 54 = Proper Repairs:
The Lack of Basic Estimating Procedures Can Kill Your Productivity!
Part Two of a Two-Part Series
The estimator is the “quarterback of the shop.” If he or she
fails to document all of the damage, the technician may or may
not repair some missed damages, and the shop will not always
get paid for it. The estimator plays a pivotal role in the shop’s
success and profitability.
The estimator needs to set the repair process in proper motion by writing an accurate damage report. It will be used as
the work order after it is put through the management system,
and will eventually be the final repair invoice. It is imperative
that this damage report encompasses all the damage and repaired, replaced and refinished procedures. All too often in repair facilities, the estimator will write an incomplete estimate
and say, “I’ll call for a supplement; I do not have time to get
that deep into this vehicle.” That is, quite simply, no way to run
a collision repair facility. Oftentimes, one will hear that “the insurance company will not pay for (the procedure in question).”
The insurance company representatives are not the repair profes-
26 February 2009
sionals; insurance companies pay for the repairs and cannot dictate the repair process.
Shop estimators ask, “What does I-CAR say about this repair procedure?” I-CAR does not set or police repair procedures.
Each automaker may recommend a repair procedure. If no repair
procedures exist from the manufacturer, then I-CAR has some
general repair or sectioning procedures, better known as the
UPCRs (Uniformed Procedures for Collision Repair).
In a December 2007 I-CAR Advantage article, I-CAR
asked, “Do the UPCRs still apply to new vehicle design?” ICAR’s answer was, “Maybe not, due to the advanced metals
and design technologies in newer vehicles.” I-CAR also stated,
“The UPCRs have not been revised [lately].” However, the business of collision repair has drastically changed over the past 25
years. To understand the latest in new steels, I suggest attending
the I-CAR SPS07 course on New Unitized Structures and Techcontinued on pg. 28
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80 William S. Canning Blvd.
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800-678-0914
fax: 508-730-1283
IRA Audi
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800-774-8411
978-605-2182 fax: 978-605-2271
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617-264-6922
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860-282-0191
fax: 860-290-6355
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203-269-3318
fax:203-294-4256
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508-869-6766
fax: 508-869-6925
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February 2009 27
Tech Feature
nologies. This course will change your attitude towards collision repair.
The days of repairing vehicles based on your opinion and
past experience are over. Repair facilities need OEM repair information and training just to understand what is and is not repairable. The days of using heat to repair vehicles are also over,
because most OEMs want their vehicles repaired cold with
stress relief accomplished by vibration (hammering with
blocks of wood).
The complexity of the metallurgy used in today’s vehicles
needs to be fully understood by the estimator and the repair
technicians. The liability issue is bigger than ever. I have seen
too many vehicles repaired incorrectly during my investigations. At times, I have discovered that the vehicle was never
measured. If it had been measured, it would most likely have
been repaired correctly.
I also consult with many shops that are involved with a
Direct Repair Program (DRP). Many DRP contracts state that
the shop must have a damage estimator who has passed the
ASE B6 test, as well as have an I-CAR qualified welder and
three-dimensional measuring equipment with a printout of before and after measurements. I strongly agree with these requirements. These easy-to-fulfill requirements will help ensure
that the repair facility will have some of the tools and knowledge to repair the vehicle correctly.
Now, let’s take a look at a vehicle being estimated utilizing the EME 54 theory.
On Monday morning, a vehicle is towed into your shop,
and the customer fills out all the paperwork and signs all
needed authorizations. The vehicle is movable, but not safely
drivable. The vehicle is moved into the estimating area of the
shop. This area has some hand and air tools, a fluorescent drop
light, a creeper, a hydraulic jack, jack stands, a digital camera,
a computer or estimate pad, a two-post lift, multiple-sized
speed squares, a metric tape measure, a tram gauge and an electronic three-dimensional measuring system.
For this example, we will use the Car-O-Liner Car-OTronic Vision X3 system, which will be referred to as “the X3
system.” Our vehicle will be a 2008 model that has sustained
damage to the front of the vehicle. The hood does not open,
and both of the fenders are damaged. The front bumper assembly is pushed into the vehicle structure, but the front doors open
and close normally.
Step 1: Take photographs of the four corners of the vehicle,
the Vehicle Identification Number (VIN tag and label), license
plate, full view of damage, close up of the damage and undercarriage, doors, trunk, closed or open hood, exposing damage
if applicable.
28 February 2009
Step 2: Do a “walk around” of the vehicle. To do this, you
must start by walking to the opposite end of the vehicle from
the damage. For example, if the vehicle is damaged in the front,
you start by opening the trunk. The reason for this is that you
are looking for any secondary or indirect damages. The new
metals in vehicles are designed to transfer collision energy
from the front of the vehicle around the passenger compartment to the rear of the vehicle, and from the rear to the front.
After opening and closing the trunk, it appears to operate
normally. You now move to the rear doors to check their operation. Both rear doors operate properly. Now, you will need to
do a quick check of the rear suspension. This is easy. At the
end of the rocker panel, place your fingers between the rear
tire and the rocker panel on one side and then compare it to the
other side. If there is a difference, there is some sort of damage
to the rear suspension cradle or mounting areas. If it is equal,
that does not mean there is not damage; it will still need to be
measured, but we will discuss this process a little later.
Step 3: Take the damaged parts off the vehicle. Some estimators might call this process teardown, blueprinting or “triage.”
I prefer the term “teardown.” The teardown can only be performed if the insurance companies allow the teardown, due to
proof of loss or subrogation. If this cannot be done at this time,
a light teardown of damaged parts should be able to be performed. In this example, you need to remove the hood
latch/lock bolts to open the hood. Remember to take photos
during this process.
Step 4: Raise the vehicle up in the air. This is one of the most
important steps, because there could be a lot of movement that
can happen in the undercarriage. It has been estimated that as
much as 40 percent of the structural damage can be ascertained
by looking under a damaged vehicle! Look for any leaks,
bends or kinks in the rails, floor pan or trunk floor. Look at the
suspension mounting locations for any movement. Look at the
exhaust mounts and heat shield mounting locations. Any movement in these locations would indicate structural movement.
Any damages found should be photographed.
Step 5: Now, it is time to set up your electronic measuring system. Follow the equipment maker’s procedures for the setup.
Set up the measuring ladder on the Car-O-Liner stand, a table
or adjustable portable stands. You will need to look up the vehicle specifications in your system and use the data for underbody, upper body and point-to-point to compare to the
damaged vehicle. Attach the measuring arm to the bridge. Take
four measurements in the center section of the vehicle to position the measuring system to the vehicle. You are now ready to
take measurements. Starting with the first of the five important areas, measure the complete underbody. You will now
measure the underhood area. Make sure to measure the strut
continued on pg. 30
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February 2009 29
Tech Feature
mounting bolts on the strut tower and the
radiator support reference locations.
Moving to the side structure, you will
measure the door hinge mounting locations and the striker mounting locations.
In the fourth location, you will measure
the trunk area reference locations and
then the suspension parts. First, remove
all four tires so that all the mounting locations can be accessed. It is imperative that
these measurements are done along with
using the speed square to check the
knuckle assemblies.
Step 6: With all the visual investigations
and measurements you have taken, you
now can diagnose what is and what is not
damaged. Add this to some research of
OEM repair information, and you are
ready to start writing an accurate damage
report. There really should not be any surprises during the repair process, because
you have performed a thorough investigation. There should not be a supplement
needed, except maybe for parts price differences, some unforeseen part or perhaps
an OEM change of what is available, such
as a superseded part.
Step 7: The vehicle should now flow
though the shop easily without delivery
issues, because you have conducted a
thorough investigation and written an accurate estimate.
Conclusion:
If you follow the P&L theory of EME
and 54, you can accurately ascertain all
damages, have good production work
flow, limit supplements and make safe, liability-free proper repairs. Your productivity will grow – along with your profit
margin!
* Additional consulting by Dave Demarest Jr.
Mass./Rhode Island
Larry Montanez
is a former ICAR Instructor
and is Co-Owner
of P&L Consultants with Peter
Pratti Jr. P&L
conducts repair
workshops on
MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills. P&L also
conducts investigations for insurers and repair shops for improper
repairs. Montanez is an I-CAR
Platinum Individual, I-CAR Steel
WQT, I-CAR Aluminum WQT, ICAR Structural WQT, ASE Certified Collision Repair Estimator,
ASE Certified Master Collision
Repair/Refinishing
Technician,
ASE Certified Service Consultant,
ASE EPA Reg. 609 A/C # 80982
MVAC, NYS Independent Adjusters Lic. # 749458, Toyota Prius
Collision Trained, SAE Service Development Technical Committee
Member and ASA Educational
Member. Peter Pratti Jr. is an ICAR Program Instructor who is
ASE Certified and holds certifications in various industry circles
such as with Toyota, Spies Hecker
and Chief Automotive. P&L can
be reached by contacting Montanez at (718) 891–4018 or larrygoju@aol.com.
30 February 2009
February 2009 31
South Shore Volkswagen
579 Washington Ave.
Hanover, MA 02339
800-826-2203
fax: 781-829-3393
www.sscars.com
Mattie Volkswagen
80 William S. Canning Blvd.
Fall River, MA 02771
800-678-0914
fax: 508-730-1283
Scott Volkswagen
260 Newport Ave
Rumford, RI 02916
401-431-0334
fax: 401-431-0358
e-mail: Parts@scottvw.com
VW of West Hartford
470 New Park Ave.
West Hartford, CT. 06110
860-236-9164
fax: 860-523-5371
Patrick Motors
519 Washington St.
Auburn, MA 01501
800-367-7222
fax: 508-721-2374
Boston Volkswagen
168 Western Ave.
Allston, MA 02134
617-783-1477
fax: 617-783-6309
32 February 2009
Atamian Volkwagen
150 Main Street
Tewksbury, MA 01876
978-851-4356
fax: 978-640-1511
AASP Member
Benefit Update
In Memoriam:
Francis “Fran” Ricci
Francis “Fran” Ricci, father of CMARA President Tom Ricci, passed away on
January 2 at the age of 83.
A World War Two veteran, Ricci co-owned Ricci’s Farm Stand in Waltham for
50-plus years and also served as a volunteer in the local VFW post. He is survived
by his wife of 62 years, Eleanor, two daughters, three sons, 13 grandchildren and
seven great-grandchildren. Expressions of sympathy may be made in his memory to
the Home for the Little Wanderers, 161 South Huntington Avenue, Boston, Ma.
02130.
Tom Ricci recently shared some thoughts on his father with New England Automotive Report:
“Fran Ricci was an amazing man,” he said. “He loved being a farmer and working with the soil. He had to leave school in the ninth grade to help his father on the
farm. He was smart and resourceful in many ways, and he taught himself how to fix
cars, trucks and tractors. He was also a carpenter, plumber, electrician, boiler repairman, greenhouse maintenance man and businessman. He even served his country in
the Army.
“He had a heart attack and strokes in 1997, but his love for his family and friends
brought him back to health and work at Ricci Farms,” Ricci adds. “My dad was a
very kind, loving and compassionate person always ready to help someone in need.
He always tried to create peace for all around him. He was gentleman who touched
everyone with his big heart. He was a loving husband, father, grandfather, greatgrandfather and friend to all.”
CMARA, AASP MA/RI and New England Automotive Report offer the Ricci
family our deepest sympathies.
“If you’re not part of an association,
your head is kind of stuck in your own
business, and you really don’t know what
anybody else is doing,” he says. “Quite
frankly, if you’re not in a group like AASP,
the shop down the street will look to you
as a competitor. You don’t get a chance to
work with other shops and collaborate, so
you miss those opportunities,” he says.”
Since 2002, Mitchell 1 has seen its
AASP customer base increase by at least
five percent each year. And with the collaboration still very active, that number is
likely to grow even higher in 2009.
“Our hope is to work better at the
street level between the AASP affiliate and
our local representation,” Boyington says.
“We can market all day long, but if we
can’t get the two organizations working together, our message is not as strong.”
For more information on Mitchell 1,
please visit www.mitchell1.com.
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February 2009 33
Cover Story
Auto Body
Reform 2.0
image ©istockphoto.com/DNY59
AASP MA/RI Responds to the
Special Commission’s Report,
Refiles the Labor Rate Bill
by Joel Gausten
In the world of Labor Rate Reform, there is no such thing
as a quiet time.
Proving that 2008 was indeed a busy year for the Massachusetts auto repair community, the second-to-last day of the
year saw the release of the state’s Special Commission on
Auto Body Labor Rates’ long-awaited report. Unsurprisingly,
the 18-page document finally established in writing the ongoing dilemmas facing repairers and insurers in agreeing on
what is fair and reasonable compensation for collision repair
in the Commonwealth.
When Polar Opposites Meet
Reviewing the report, it is glaringly obvious that the collision repair and insurance industries have dramatically different takes on the same issue – as clearly displayed in the
Commission report’s conclusion:
There is no dispute that the auto body Labor Rate has not
kept pace with increases in the Labor Rates in similar industries. The question is what, if anything, needs to be done at
this time to remedy the situation. Those in the insurance industry advise a wait and see posture, to allow the Managed Competition of the Massachusetts private passenger automobile
insurance market to determine the appropriate auto body
Labor Rate. Those in the auto body business, however, feel
that an increase in the Labor Rate is so overdue as to neces-
sitate an immediate increase.
Expanding on their oft-maligned “wait and see” approach
in light of “Managed Competition,” the insurance industry
representatives on the Commission presented the following
summary:
With a competitive automobile insurance system in its infancy, several components comprising the premium dollar, including the body shop Labor Rate, that have been so heavily
regulated will need time to react to the new competitive landscape. The best method for allowing the system to develop into
a healthy market is to provide time for it to recover and to
achieve equilibrium within the context of competitively set
auto insurance rates. To force the Labor Rate into a fixed and
established rate-setting mechanism is not advisable, as it compromises such a sizable component of the auto insurance premium that much of the premium dollar would again be fixed by
the state. The market should be given time to work to find
equilibrium for the mutual benefit of shops, insurers and most
importantly, consumers.
Naturally, the collision representatives couldn’t have disagreed more, opting instead to stress the importance of introducing a new rating system to determine suitable rates for
body shops:
February 2009 35
Cover Story
The collision industry urges the legislature to pass legislation that includes the major provisions in the original Auto
Body Labor Rate Bill, H1085. We believe that testimony offered during the recently concluded hearing proves, without a
doubt, that waiting for the forces of a free market to develop
for Labor Rates will not solve the problem that virtually all
witnesses acknowledged. We feel the nature of the market for
Labor Rates is controlled so tightly in all aspects by one party
– from the initial appraisal to the final payment, and all ac-
“The free market doesn’t work,
and it hasn’t worked for as long as
I’ve been around. And it’s not
going to work when a third party
is picking up the tab.”
~ AASP MA/RI President Rick Starbard
tions in between – that no force, except for the force of law,
can be a counterbalance to that control. In simple terms, the
insurance industry is the only party that can change the situation and, because it holds the ultimate power as the payer,
fair and meaningful Labor Rate reform will not take place
without the force of law.
Therefore, we request that the legislature adopt a tiered
rating system for registered collision shops as well as minimum allowable amounts for those rated shops for all categories of labor to be determined by using the national average
and indexing it to the Massachusetts labor market according
to a multiplier that would be determined from reports from the
Bureau of Labor Statistics of the US Department of Labor.
Further, we recommend that all of the above actions be regulated, managed and executed by an autonomous commission
of the Commonwealth that is fully funded by fees paid by the
collision industry and the auto insurance industry, according
to the provisions in the original legislation, and that labor
rates for rated shops be reviewed and updated at least every
three years according to the above formula.
Despite the drastic disparity of the above philosophies,
36 February 2009
Commission members nonetheless
agreed to establish three recommendations to address the Labor Rate debate:
1. The Commission recommends
that as soon as the data for auto body
Labor Rates through June 30, 2009 becomes available, the General Court
should review it to determine what effect, if any, the implementation of Managed Competition has had on the auto
body Labor Rate paid by insurance companies to auto body shops located in
Massachusetts. The representatives of
the auto insurance and auto body industries agree that the CCC Information
Service’s “Crash Course” and Mitchell
International’s “Industry Trends” reports will be utilized as the primary national source for Labor Rate statistics.
The Commission also recommends that
the other sources of information such as
Collision Repair Industry Insight as well
as appraisals generated by insurers to
consumers and/or repairers to track
movement in Labor Rate be utilized.
These reports are produced quarterly
and annually. They detail the average
Labor Rate paid nationally and by state.
Also included in these reports is the average number of labor hours per repair,
both nationally and by state.
that the General Court then consider
whether or not alternate methods, including legislation, are necessary to ensure that the Labor Rate insurers pay to
auto body shops for repair of damaged
motor vehicles is fair and reasonable as
a result of the transition to Managed
Competition in Massachusetts motor vehicle insurance.
representatives from the motor vehicle
insurance industry to discuss and identify best practices and any other actions
that will improve the accountability and
quality of services that both industries
provide to customers whose motor vehicles are damaged.
The Industry Reacts… and Takes
Action
For Labor Rate Commission member and AASP MA/RI President Rick
Starbard, the release of the report ushers
in a new era for the long-running (and,
as many shop owners say, exhausting)
Labor Rate campaign.
“This addressed Labor Rates like
they’ve never been addressed before, so
it definitely put some things into action,” he says. “For a shop owner who’s
not heavily involved in it, the firstglance response may be, ‘Eh, what did
they do? The bill didn’t get passed and it
didn’t classify shops.’ Yet, when you
look right at it, we should at least see
continued on pg. 41
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that representatives of the auto body repair shop industry meet bi-monthly with
February 2009 37
38 February 2009
February 2009 39
40 February 2009
Cover Story
some action before June. But if the rate increases are minimal
– just a few dollars – I don’t think that’s enough, and I think
it would help us make a strong argument to go back to the legislature and say, ‘See? They threw pennies at us to try to make
the problem go away.’”
Starbard’s sentiments ring true for CMARA President
Tom Ricci, who also served on the Commission.
“We need Labor Rate relief, and I’m not talking about $2
an hour or getting some sort of sizeable increase in labor and
then having it taken out in procedures,” he says. “We’re talking about a realistic Labor Rate increase or an RROI, a ‘Reasonable Return on Investment.’ We are, as body shop owners,
all in survival mode, and we need relief to get beyond the poor
ROI that exists in Massachusetts today. After eight to 10 years
of no Labor Rate change, one can easily imagine what the rate
should be.”
While the report succeeds in getting the ball rolling, both
AASP MA/RI and CMARA agree that the recommendations
brought forth in the documents may only be achieved with a
healthy legislative push. In mid-January, both associations
joined forces to re-introduce the Labor Rate Bill in the Senate.
Armed with the services of veteran Massachusetts lobbyist
Martin Corry of Corry Associates, the industry’s latest State
House campaign seeks to move above and beyond the goals
outlined in the report.
“The report just touched on Labor Rate; it didn’t get into
the classification of shops or any mechanism to re-address
rates,” explains Starbard. “If an insurance company does increase its rate $10 an hour, what’s to say that rate would still
be $10 higher 20 years from now? We’ll be right back to
where we are now. The bill took care of that.”
“[Insurers] have said that the market can solve the problem; we argue that no realistic market is going to emerge on
Labor Rates in Massachusetts, regardless of the relaxing of
regulations on premium rates and/or the repeal of the cost containment regulation,” adds AASP MA/RI Executive Director
Peter Abdelmaseh. “We’ve been around long enough to know
that [insurers] likely won’t change unless there is the force of
law or the threat of force of law. Therefore, while the Commission’s report defines what could happen, we still feel we
have to do this no matter what.”
“We cannot wait for the report’s due date of June 30, because we just can’t sit here and think that it is the solve-all,”
adds Ricci.
Still in the Game
With the Labor Rate legislative effort entering another
year, industry leaders are hopeful that shops owner, managers
and employees will continue their efforts at the State House
and beyond. Although fatigue has set in for many after years
at the negotiating table, Ricci is quick to remind his members
that the greatest fight may still be ahead.
“It has been exciting and rewarding, but it’s also been
frustrating at times,” Ricci says. “I’m not willing to give up on
anything, and anybody who’s been involved in this process
continues to fight and fight hard. As an owner, I want to see
instant gratification; as someone who’s been involved in this
thing, I realize there is no instant gratification in dealing with
legislators, insurance companies and commissions.”
In Abdelmaseh’s mind, the report offers yet another opportunity for repairers to make their call for true oversight in
rate setting heard in the legislature.
“We’re going to build on the momentum we had, especially in the Senate, and work on building popular support for
the bill,” he says.
“We didn’t get in this to get relief; we got in this to get reform,” he adds. “They are two very different things, and we
will still argue the reform issue so long as it’s pertinent.”
Of course, there is still the matter of Managed Competition. With Insurance Commissioner Burnes’ controversial system hitting its one-year mark only weeks before the
Commission’s six-month review period expires, questions regarding the validity of a de-regulated insurance market in
Massachusetts will surely escalate. Will a free market indeed
prove beneficial to the financial wellbeing of the collision repair industry, or will insurers need a legislative incentive to
raise their Labor Rates? With a Commission report on one side
of his desk and the latest version of his association’s legislation on the other, Starbard believes this question can only be
answered one way:
“The free market doesn’t work, and it hasn’t worked for
as long as I’ve been around. And it’s not going to work when
a third party is picking up the tab.”
The complete Commission report can be viewed at
www.mass.gov/Eoca/docs/autobodyrates/finalreport20081
230.pdf.
Mass./Rhode Island
February 2009 41
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February 2009 43
CMARA Update
by Joel Gausten
Labor Rate
Commission Prompts
Hope, Apprehension
With the December 30 report of the Massachusetts Special Commission on Auto Body Labor Rates now hitting the
computer screens of shop owners throughout the Commonwealth, members of the Central Mass Auto Rebuilders Association are greeting the document with a heavy dose of
guarded optimism.
After testifying in front of the Labor Rate Commission
last fall on behalf of the auto body repair industry, Al
Brodeur of Al Brodeur’s Auto Body (Marlborough) looks at
the recommendations found in the long-awaited report with
skeptical eyes.
“It just seems to be smoke and mirrors to me, to be honest,” he says. “It’s all well and good, but that’s another six
months down the road, and it doesn’t assure us of anything,
really. [But] there is something at least moving forward, and
that’s what I’m happy about. Something is getting done
rather than nothing. What bothered us in the past was that
absolutely nothing was getting done, and no one was doing
anything to help us.
“As long as there are referral shops, and people willing
to do work for a low Labor Rate, there is absolutely no motivation for the insurance companies to go up on their rates,”
he adds.
Brodeur’s daughter, Molly, who also testified before the
Commission, is also concerned that the report’s six-month
review timeframe may further prolong an increase in Labor
Rate payments.
“I do think it’s a good step that there is at least a set date
for some kind of review happening, but it’s six months
away,” she offers. “In our minds, this has been going on for
the better part of 20 years. The thought of having to wait
longer again makes us feel like we’re never going to see the
end to this.”
Walter Thomas, longtime Massachusetts industry advocate and CMARA past president, also remains unconvinced
that the report will prove successful in prompting insurers
44 February 2009
to do the right thing.
“One thing that jumps off the page is the recommendation that the insurance companies try to rectify the problem
and raise the rate at fair market value,” he says. “Is that
going to happen? I doubt it.”
As members of the Massachusetts collision community
wait to see what, if anything, will ultimately come of the report, others are quick to point out that the report’s existence
should at least be considered a significant milestone.
“It’s progress; it’s certainly better than doing nothing at
all,” offers CMARA Vice President Tom McClements, Jr.
“With the auto body industry, the insurance industry and the
legislature all being represented and working together for
what would appear to be a common goal, it’s exciting and
an opportunity to build bridges of communication between
the three to try to make the industry better for all parties involved.”
In the month ahead, McClements will be joining his fellow CMARA members in promoting the recently reintroduced Labor Rate Bill - which may serve to keep insurers
focused on the Labor Rate issue if the report’s recommendations fail to come to fruition.
“The bill would reinforce the absolute need from our industry to have some type of meeting of the minds, or have
some type of reconciliation to a major issue that’s been going
on for quite some time,” he says.
Above all, McClements strongly encourages his membership to remain vigilant in promoting a fair and reasonable Labor Rate after 20 years of resistance.
“Rome wasn’t built overnight, and I don’t expect the
gaps in communication that the two industries have had between them to be remedied overnight, either,” he says.
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February 2009 45
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February 2009 New England Automotive Report

Transcription

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