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GCIA Provides Preparation Tips for OSHA Isocyanates Inspections in Georgia Body Shops Georgia collision repair facilities can expect increased levels of inspections by the Occupational Safety and Health Administration (OSHA) to continue in 2014. OSHA issued its annual inspection plan under the Site-Specific Targeting 2014 program as well as its current list of National Emphasis Programs to direct enforcement resources to workplaces where the highest rates of injuries and illnesses occur. The Georgia Collision Industry Association (GCIA) has provided the following OSHA inspection preparation recommendations: • Have painters use supplied or
fresh/purifying air systems while in the booth to reduce isocyanate exposure and avoid the dual-cartridge and halfmask respirators, which are the least effective means of protection against isocyanates. If these are the respirators in use, the documentation should reflect accurate change-out schedules. • Keep all Respiratory Protection Program documentation, such as fit tests and medical evaluations, in order. • Clean the shop regularly as the inspector could swipe test shop areas. • Improve ventilation in the mixing rooms by keeping the pickup vents as See GCIA Recommends, Page 4
Property and Casualty Insurers Hit With Antitrust Suit by Florida Auto Body Shops representative of the true market for such services. The plaintiffs also allege that the remaining insurer defendants in the state have advised plaintiffs that they will pay no more than State Farm pays for labor at their shops, thus resulting in a stabilizing of rates at these allegedly low levels. In addition to a number of common law counts, plaintiffs assert that defendants’ conduct constitutes price fixing under Section 1 of the Sherman Act. In search of evidence of agreement amongst the defendants (a necessary element of a Section 1 claim), See FL Antitrust Suit, Page 28
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On February 24, 2014, a group of Florida auto body shops filed an antitrust action against over forty property and casualty insurers in the U.S. District Court for the Middle District of Florida. In the case, A&E Auto Body versus 21st Century Centennial Insurance Co., d/b/a Farmers Insurance Group et al., the plaintiffs allege that the State Farm vendor agreement requires shops desiring to participate in this preferred provider program to accept the market rate for such services, and that State Farm calculates those rates in an improper manner that keeps them artificially low and not
VOL. 5 ISSUE 2 APRIL 2014
Southern Automotive Repair Conference Will Be in Biloxi, MS, April 11–12, 2014 The second annual Southern Automotive Repair Conference will host a variety of nationally-recognized industry speakers, breakout training sessions, industry reception, and industry product and vendor exhibition tailored to collision repairers April 11–12, 2014, at the Beau Rivage Resort and Casino in Biloxi, MS. Radio personality Patrick Porter from Porter’s Body Shop in Brookhaven, MS, will be the master of ceremonies. Some of the guest speakers and topics include: • Aaron Schulenburg, Society of Collision Repair Specialists (SCRS) executive director, will provide a national industry update. • Mike Thornton, Congressional Medal of Honor recipient, will be a motivational speaker.
• Aaron Clark from Assured Performance will discuss OEM certifications. • Dave Posten, collision marketing manager for American Honda, will discuss Honda repair technologies. • Richard Perry, Chief’s Ford F150 project manager, will discuss the new repair requirements for aluminum F-150 vehicles. • Richard Valenzuela with National Auto Body Research will discuss the variable rate system, a system that promises to make a difference in establishing equitable labor rates through a body shop survey system. • Body shop owners John Mosely and Ray Gunder, along with attorney John Eaves, Jr. will discuss the details and status of lawsuits filed against in-
See Southern Repair Conference, Page 34
Maryland Parts Bill Gets Unfavorable Vote in Cmte
In a vote in the MD House Economic Matters committee on March 14, Maryland House Bill 574 (HB574), sponsored by Delegate John A. Olszewski, Jr., received an unfavorable report out of the committee. Introduced in January, HB574 and its companion, Senate Bill 487, sponsored by Senator John C. Astle, sought to prohibit insurance company personnel from specifying a specific vendor for parts or materials or part procurement process, and would have required OEM crash parts for a period of three years after the date of manufacture of a vehicle. In a 16 to 7 vote on March 14, the MD House Economic Matters committee voted for an unfavorable report on HB574. In Maryland, committees report to the legislature on the bills that are assigned to them as favorable, with or without amendment, unfavorable, or without recommendation. Having been voted out of committee, the bill now returns to the floor of its
chamber of origin accompanied by a report of committee action for consideration. No action has yet been taken on SB487. The bills provided common ground for insurers and non-OEM parts suppliers in opposition. Several insurance and aftermarket parts groups testified in opposition to the bill. Repair facility operators that support the legislation believe it protects consumers and preserves a repair facilities ability to manage its operations. The Washington Metropolitan Auto Body Association, WMABA, supports the proposed legislation believing it necessary to protect the rights of repair facilities to operate their business independently and protect consumers. The Automotive Body Parts Association (ABPA) publicly denounced the legislation prohibiting insurers from requiring the use of alternative collision parts on vehicles less than See Maryland Parts Bill, Page 20
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