September 2012 Southeast Edition

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Southeast Edition Florida Georgia Alabama Mississippi

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Shop Owner Wars with Boynton Beach by Melanie Anderson

Over the past two years, David Floering—who has owned Eastern Auto Body and Glass, Inc. (dba as Eastern Towing and Recovery) in Boynton Beach, FL, for 24 years—has become something of an expert in fighting city government. It all started in 2010 when he lost his towing contract with the city. Since then, Floering spends about a third of his work week sorting through piles of papers, investigating, filing complaints and pursuing his one-man fight against the city of Boynton Beach. Floering, 51, takes full advantage of chapter 119 of the Florida Statutes,

which requires the government to disclose most records to anyone upon request. He’s filed 41 public records requests since 2010, asking to see all types of documents: police reports, emails and personnel files for top city officials. His research led to the fall of the town’s mayor. In June, a judge ruled in Floering’s favor and awarded him attorney fees for being denied a public records request which involved city officials illegally withholding a video related to a domestic dispute between Mayor Jose Rodriguez and his wife. The actual allegations were in regards to his alleged abuse of his young stepSee War With City, Page 38

SEMA-AAPEX is Oct. 30-Nov 2 in Las Vegas For SCRS’ Repairer Driven Education, see p. 30-32

PARTS ACT Heard in House of Representatives

on collision repair parts, a dubious benefit according to those opposed to the legislation who warn of a slippery slope that would stifle innovation by inhibiting patent protection. “Competition is the hallmark of our free market system,” Issa said. “For decades Americans have been used to having choice when it comes to the component parts that they use to repair their vehicles after an automobile accident. My bill ensures that this choice will remain intact.” Issa is himself the holder of some dozen auSee Parts Act, Page 35

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

The House Judiciary Intellectual Property Subcommittee heard testimony on Aug. 1 regarding the Promoting Automotive Repair Trade and Sales (PARTS) Act, which is carried by California Reps Darrell Issa (R) and Zoe Lofgren (D). H.R. 3889 is designed to significantly reduce the time allowed to carmakers for design patent protection on collision parts from 14 years to just 2.5 years. Supporters of PARTS say the measure would expand consumer choices and cut costs paid by insurers

VOL. 3 ISSUE 7 SEPTEMBER 2012

Insurers Pay Gunder’s New Labor Rate Ray Gunder, founder of Gunder’s Auto Center, Inc.—which has served Lakeland, FL, and its surrounding communities for over 44 years—determined the current labor rates which were being offered by insurers were insufficient to sustain profitability and continued growth. Upon determining the true cost of operations, in June, 2012, the decision was made by insurers to increase the standard door labor rate from their previously posted rate of $42.00 to $48.00 per labor hour, a 12.5% increase. Ray Gunder stated, “It had been almost six years since rates had moved, driving our net profit into a danger zone. Our business and our techs strug-

gling financially left me with no options. Every insurance employee I talked with certainly hadn’t missed their cost of living raises. If repairers sit around and wait for a hand-out—that’s what they will likely get—a handout. I felt that for my company and its team members to keep up with the rising costs of living and for us to Ray Gunder keep abreast of ever-increasing operational costs, raising our labor rates was necessary. We needed to take actions and we did.” See Gunder Labor Rates, Page 4

NACE-CARS (ASRW) is Oct. 10-13 in New Orleans Full Schedule of Courses, see p. 19-23

MCRA Discusses PartsTrader at August Meeting The Mississippi Collision Repair Association held its August 20 meeting at Uncle Buck’s restaurant in The Bass Pro Shop in Pearl, MS and the issues surrounding State Farm’s PartsTrader procurement program continues to be a big concern for members. In fact, the proposed program was the impetus that revived the association after many years of inactivity. According to John Mosley, association past president and owner/operator of Clinton Body Shop Inc. in Central Mississippi, the August meeting included discussing proposed bylaws, collecting dues and nominating officers. Additionally, the meeting included an open discussion pertaining to the trials and tribulations of proper P-page logic estimating procedures and discussion regarding the issues surrounding State Farm’s pilot PartsTrader program. “We in Mississippi are making a difference,” said Mosley. “We are helping to set the course for change in our industry. Shops in many other states have begun to unite. Repair associations are growing fast. SCRS has seen an increase in membership. Much of this activity has been spurred on because of State Farm’s PartsTrader program.”

Mosley continued, “Although State Farm was first to bring this idea front and center, it is believed that many other insurance companies are observing and preparing their own parts procurement programs if State Farm is successful in their endeavor. Many associations have researched and considered the pros and cons of the PartsTrader network. I haven’t read a single report that determined PartsTrader to benefit the repair industry. The negative effects this type of program could have on our individual businesses is astounding. A fair parts profit is critical to guarantee the survival of most of us.” Prior to the meeting, Mosley urged his fellow repairers to think about where the industry is headed and to what extent business owners and managers are prepared to go to preserve their right to manage their businesses, including who they buy parts from. “We can’t be assured of measurable success if we aren’t united in our efforts to preserve and advance the collision repair industry,” he said. “With a strong association, we can grow and strengthen our businesses and our industry.”

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