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PLUS: Minneapolis and St. Paul Minimum Wage and Earned Sick and Safe Time Policies www.grecopublishing.com
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CONTENTS AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 • Roseville, MN 55113 Phone: 612-623-1110 • Fax: 612-623-1122 email: email@example.com • website: aaspmn.org. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. © 2017 All rights reserved. Cover image © www.istockphoto.com.
Vol. 25 No. 8
AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.
EXECUTIVE DIRECTOR’S MESSAGE ............................................................4 MNCARS: On a Roll! by Judell Anderson, CAE, AAM, AASP-MN Executive Director
AASP-MN BOARD MEMBERS 2017 - 2018
LEGISLATIVE UPDATE........................................................................5 Minneapolis and St. Paul Minimum Wage and Earned Sick and Safe Time Policies by Kevin Walli, AASP-MN Lobbyist
PRESIDENT Wayne Watson
IMMEDIATE PAST PRESIDENT Greg Kasel, AAM
NATIONAL NEWS ............................................................................11
SECRETARY-TREASURER Will Latuff
DEG ESTIMATING TIPS ......................................................................13
COLLISION DIVISION DIRECTOR Bruce Tschida, AAM MECHANICAL DIVISION DIRECTOR Carl Thomas ASSOCIATE DIVISION DIRECTOR Dave Bock COLLISION SEAT Matthew Feehan
PARTNERS IN PREVENTION......................................................................14 Don’t Let Your Profits Go to Waste
INSURANCE I.Q. ..............................................................................20 How to Make a Reliable Evaluation of a Potential Insurance Carrier CASH IN ON YOUR MEMBERSHIP! ........................................................22 AASP-MN Auto Employees Assessment System
MECHANICAL SEATS Randy Notto, AAM Mars Overlee
STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM OFFICE ADMINISTRATOR Jodi Pillsbury
August 23, 2017 AASP-MN Night Out With the St. Paul Saints CHS Field St. Paul
August 30, 2017 AASP National Webinar: ABCs of Employee Retention 1pm - 2pm CST See pg. 11 for details
For more information, contact the AASP-MN office at 612-623-1110 or visit the Association’s website, www.aaspmn.org.
MEMBERSHIP COORDINATOR Tom Kluver PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 PUBLISHER Thomas Greco | firstname.lastname@example.org SALES DIRECTOR Alicia Figurelli | email@example.com EDITORIAL DIRECTOR Joel Gausten | firstname.lastname@example.org CREATIVE DIRECTOR Lea Velocci | email@example.com EDITORIAL & CREATIVE COORDINATOR Kristen Dalli | firstname.lastname@example.org OFFICE MANAGER Donna Greco | email@example.com www.grecopublishing.com
ADVERTISERS’ INDEX AmeriPride ................................................................21 Axalta Coating Systems..............................................IFC Buerkle Hyundai ........................................................19 Choice Auto Rentals ..................................................12 Dentsmart ..................................................................14 FinishMaster ..............................................................17 Inver Grove Honda / Inver Grove Toyota ....................16 Jack McClard ............................................................8 Keystone ....................................................................19 Libson Twin City ........................................................18 Maplewood Toyota ....................................................12 Mills Parts Center ......................................................18 Morrie’s ....................................................................13
Motorwerks BMW ......................................................IBC MPA ..........................................................................9 PAM’s Auto ................................................................17 Proven Force..............................................................16 Rosedale Chevrolet ....................................................8 Roseville Chrysler ......................................................18 Straight & Square ......................................................15 Toyota Group..............................................................10 West Bend..................................................................OBC
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EXECUTIVE DIRECTOR’S MESSAGE
by Judell Anderson, CAE, AAM, AASP-MN Executive Director
ON A ROLL!
With 18 months under our belt for the Minnesota Careers in Auto Repair & Service (MNCARS) initiative, it’s time to take a step back and assess our progress. It’s pretty impressive, if I do say so myself! Here’s what we’ve done… • Developed foundational materials, including a website, social media presence, marketing materials and other collateral to educate target audiences about the career opportunities in today’s automotive service and collision repair industry • Established an industry speaker’s bureau and recruited “student ambassadors” to promote careers in the auto service and collision industry • Presented to middle school and high school automotive students and participated in career and college fairs throughout the state • Activated social media campaign to drive traffic to carcareers.org • Sponsored St. Cloud Times SPARK feature on transportation careers and event at St. Cloud CTC • Distributed introductory materials and career promotion posters to school counselors • Organized World of Wheels Student Day • Attended MN School Counselors Association conference (2015 – 2017) • Exhibited at Back to the ’50s (2016 and 2017) Here are the results… • As of June, we’ve been in front of over 8,400 students sharing our message about the rewarding career opportunities in the auto service and collision repair industry! • www.carcareers.org - Average monthly visits: 759 (January – June, 2017) • www.facebook.com/carcareers - On average, MNCARS content reached over 5,800 people per month (January – June, 2017) and was subsequently shared with over 53,000 people - Ads reached over15,500 people, over 300 people clicked and nearly 3,000 viewed the MNCARS video (February, March and June 2017)
• www.instagram.com/carcareers - Reach: 465. Impressions: 669 (April – June, 2017) • Snapchat: MNCARS geofilter was utilized over 1,600 times during Back to the ’50s and subsequently viewed by over 52,000 Snapchatters (June 2017) • School counselors: 1,000 mailing, 400+ conference attendees, 700 newsletter distribution • St. Cloud Times SPARK feature reached over 150,000 residents throughout Central MN Here’s what’s next… • Activate the grassroots army of AASP-MN members at the local level to spread the MNCARS message far and wide • In partnership with the MN Transportation Center of Excellence: Deploy career exploration trailer at local events to build interest and provide hands-on experiences related to automotive careers • Begin fundraising necessary to sustain the campaign into the future • Continue presentations to high school automotive students and participation in career and college fairs throughout the state • Ongoing social media presence to drive traffic to carcareers.org Those of us who have been involved in this effort from the beginning feel like we’re really starting to gain some momentum. Counselors, educators and parents appear to be much more receptive to the idea that a four-year college degree is not for everyone and that the skilled trades – especially automotive – have a lot to offer: rewarding and varied career paths with high earnings potential in a high-tech, high-demand industry. But it’s going to take the work of the entire industry to keep driving this message home and make a bigger impact. Be on the lookout this fall for more information about how you can contribute to this effort and put the resources developed by MNCARS to use in your own backyard. The future of your business depends on the availability of skilled technicians and other qualified employees. So you’re going to have to do your part to make sure that happens.
Since January, the MNCARS message has reached: • Over 8,400 middle and high school students • 750+ average monthly visitors to www.carcareers.org • Over 53,000 Facebookers 4 August 2017
• Over 52,000 Snapchatters • Over 1,000 school counselors • Over 150,000 Central MN residents
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Minneapolis and St. Paul Minimum Wage and Earned Sick and Safe Time Policies Both Minneapolis and St. Paul have implemented paid sick and safe time ordinances effective July 1, 2017. While the policies are similar in most respects, this analysis provides information specific to each city. Minneapolis also recently adopted a new minimum wage policy, which will also be outlined here. One aspect of the Ordinances which is still pending in the Minnesota Court of Appeals is whether a city may impose these work place requirements on businesses that are not located within their borders. While this issue is pending before the Court of Appeals, there will not be any requirements for paid sick and safe time for businesses outside of Minneapolis and St. Paul.
CITY OF ST. PAUL ORDINANCE The St. Paul Ordinance applies to all employers within the City of St. Paul. For employers with 24 or more employees, the Ordinance is effective July 1, 2017. For employers with 23 or fewer employees, the Ordinance is effective January 1, 2018. Employers are required to provide employees with one hour of earned sick and safe time (ESST) for every 30 hours worked. An employee can earn up to 48 hours of ESST per year. Employees can accumulate and carry over up to 80 hours of unused ESST. Employees may use ESST for their needs or needs of their family or household members. This time can be used for personal or family illness or if they are a victim of domestic abuse, sexual assault or stalking. If an employer currently provides Paid Time Off to employees that meets the ordinance requirements, the employer does not need to provide a new and different benefit. Employers are required to keep track of ESST for their employees. The Ordinance prohibits employers from interfering with their employeesâ&#x20AC;&#x2122; right to use their ESST and an employer may not retaliate against an employee for exercising their rights under the Ordinance. The St. Paul Ordinance will be implemented and enforced by the Department of Human Rights and Equal Economic Opportunity. Questions regarding the ESST Ordinance can be directed to the City office at LaborStandards@ci.stpaul.mn.us or you can call (651) 266-8900 and inform the person answering the
by Kevin Walli, AASP-MN Lobbyist
phone that you have a question regarding earned sick and safe time.
CITY OF MINNEAPOLIS PAID SICK AND SAFE TIME ORDINANCE The Minneapolis Ordinance applies to all employers within the City of Minneapolis. The Ordinance provides that first violations arising during the first 12 months following the effective date of the Ordinance will involve only mediation, warnings and notices to employers. There will be no penalties imposed except for violations that involve employer retaliation against employees.
An employer with six or more employees must compensate an employee at the same hourly rate and with the same benefits as the employee was scheduled to earn during the time that the employee uses their accrued sick and safe time. An employer with five or fewer employees must allow employees unpaid use of accrued safe and sick time. Employers are required to provide employees with one hour of earned sick and safe time (ESST) for every 30 hours worked. An employee can earn up to 48 hours of ESST per year. Employees can accumulate and carry over up to 80 hours of unused ESST. Employees may use ESST for their needs or needs of their family or household members. This time can be used for personal or family illness or if they are a victim of domestic abuse, sexual
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LOCAL NEWS Lon Baudoux Legacy Scholarship Recipient by the Collision Repair Education Foundation and received a $2,000 scholarship award. Congratulations to these outstanding students!
On-the-Air and Online Promoting Participating Member Shops and Independent Industry AASP-MN’s "Get to Know Your Neighborhood Auto Repair Pro" is an industry marketing campaign that promotes the benefits of doing business with independent auto repair shops. The primary message is that independents can perform virtually any repair or service while also maintaining closer, more lasting relationships with customers and community. The program, now in its ninth year, has reached millions of people. This year’s campaign kicked off in April with commercials running on-air and streaming online on KQRS-FM, 92.5 FM. The ads can be heard Friday-Monday through August. From July to mid-October, the commercials are on-air and streaming on KTCZ 97.1 FM. Ads are most likely to be heard on weekday evenings and weekends. From late August to mid-October, the commercials are on-air and streaming on WCCO-AM 830 on weekday evenings and weekends. Some shops in the Twin Cities and the Fargo-Moorhead area also activated a campaign on Pandora Radio running now through September. This advertising campaign will reach over a million adults 25-54 with each participating shop name and location mentioned over 150 times over the seven-month period! Participating program shops are listed on the Neighborhood Auto Repair Pro search website, where prospective customers can find shop information based on zip code. For more information about the Get to Know Your Neighborhood Auto Repair Pro advertising campaign, contact the AASP-MN office at 612-623-1110 or visit www.aaspmn.org.
Lube-Tech hosts AASP-MN’s Joint Advisory Committee Meeting Thank you to Lube-Tech in Golden Valley for hosting AASP-MN's joint advisory committee meeting on June 29. Committee members enjoyed a tour of the facility, followed by a great BBQ lunch sponsored by Choice Auto Rental. After lunch, members received an update on current association activities and participated in a discussion about communication issues between the different generations in the workplace, led by Janel Anderson of Working Conversations. Lube-Tech is a market leader in resources for advanced lubrication and energy solutions. To learn more, visit www.lubetech.com.
Three AASP-MN Scholarship Recipients Also Receive National Scholarships Earlier this year, AASP-MN awarded $18,000 in scholarships to support college automotive students during the 2017-18 school year. By completing the application process online at automotivescholarships.com, two of those students were also awarded scholarships from the Global Automotive Aftermarket Symposium (GAAS), University of the Aftermarket (UAF) or other collaborating organizations this year: - Samantha Adams, MN State Community & Technical College, Moorhead - $2,000 UAF Scholarship - Ben DeMarais, MN State Community & Technical College, Moorhead - $1,000 UAF Scholarship Dunwoody College of Technology (Minneapolis) collision repair student Angel Paucar was also recently announced as a
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AASP-MN Joint Advisory Committee members participated in a discussion about generational differences in the workplace on June 29.
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2017 Minnesota I-CAR/SkillsUSA Fall Golf Event Announced The Minnesota I-CAR/SkillsUSA Volunteer Committee invites golfers and sponsors to Oak Glen Golf Course in Stillwater on Wednesday, September 13 for a fun-filled day of golf. All proceeds from the event go towards scholarships for future technicians, equipment for technical colleges and other collision industry training needs in Minnesota. The four-person scramble, sponsored by the North Central I-CAR Committee, begins at 12:00 p.m. with a grilled dinner and awards reception following golf. In addition, there will be complimentary refreshments on several holes around the course, as well as unique contests for prizes. This is a great opportunity for vendors to market their business, products and/or services, while supporting the industry and enjoying a round of golf with industry leaders. Registration and payment for golfers and/or sponsors can be found on the golf outing’s website, www.icargolf.com. For more information, contact tournament director Jamison Randall at firstname.lastname@example.org or 651-796-8003.
MN Fines American Family, Farmers Subsidiary Over Third-party Claims Handling by John Huetter on July 11, 2017 reprint courtesy of repairerdrivennews.com Just because a carrier can’t get a hold of their at-fault policyholder or hasn’t received word of the crash from them doesn’t excuse them from having to pay third-party claims, the state of Minnesota reminded insurers and residents last month. The message was reinforced by nearly $50,000 in combined fines levied upon Farmers subsidiary Bristol West Casualty and American Family. “When there’s damage from a crash caused by the other driver, you must be treated fairly by that driver’s insurance company,” Minnesota Commerce Commissioner Michael Rothman said in a statement June 30. “Getting hit by another car is a terrible experience, but it gets even worse if the at-fault driver’s insurance company tries to stonewall and deny your claim, which is not acceptable.” The $25,000 fine for American Family and $20,000 fine for Bristol West referenced in the Minnesota Commerce Department’s news release appear to be related to April and June consent orders. Both carriers agreed to the orders with the state’s insurance regulatory agency to settle allegations related to their third-party claims handling. “American Family Insurance is driven to fulfill our
responsibilities to claimants and our policyholders,” American Family said in a statement Monday. “While we continue to take issue with the department’s allegations, we have decided to pay the fine to bring the matter to a close. We have also adapted our claim practices to prevent these allegations from happening again.” Bristol West parent Farmers did not respond to an email request for comment Monday. Consent orders The Minnesota Commerce Department said it found “significant compliance concerns” with 41 American Family third-party claims between 2014 and 2016. The Bristol West investigation allegedly found seven claims between 2015 and 2016 with concerns. Both carriers “re-adjusted the claims,” the agency wrote in a news release. “Under Minnesota law, an insurer or adjuster is not allowed to deny a liability claim because its insured driver has not cooperated, unless an independent evaluation of available evidence indicates there is no liability,” the Commerce Department wrote June 30. According to the Commerce Department, American Family “denied third-party automobile accident claims because Respondent’s insured failed to cooperate in Respondent’s investigation of the accident; and … in at least one instance, represented to its insured that it was non-renewing an automobile insurance policy in part because the insured was involved in an accident where the insured was less than 50% at fault.” On top of the fine and claim re-evaluations, American Family was ordered to offer to reinstate all policyholders it might have dropped because of a claim for which the insured didn’t share at least half of the fault (unless there was some other reason for the drop). The state also demanded that American Family knock off such alleged behavior and better educate adjusters on Minnesota law. The company also needs to give the state a report by midSeptember regarding its compliance with the consent decree. Bristol West was under investigation for allegations that Respondent refused to settle automobile accident claims solely because Respondent was unable to reach its insured and the insured failed to report the accident.” It too agreed to knock off any such behavior and have by this week a plan to ensure compliance. Collision repairers and policyholders should also take note of the law and consent order in case they encounter a carrier which denies a third-party claim on similar incorrect grounds. Hopefully, this cautionary tale and better adjuster education will head off such issues in the future. For more information, visit https://mn.gov/commerce/media/ news/#/detail/appId/2/id/301720.
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AASP NATIONAL OFFERS FREE WEBINAR The Alliance of Automotive Service Providers (AASP) is offering a free webinar, “The ABCs of Employee Retention,” on August 30 from 1:00 – 2:00 p.m. CST. The members-only webinar will be led by instructor Rick White of 180BIZ. When it comes to employees, shop owners are intent on finding and hiring the very best employees they can. Usually, the reason why they’re looking is because someone left. As hard as it is to find good technicians and advisors today, it makes keeping the great ones you already have that much more important. This webinar focuses on creating and fostering an amazing shop culture that will help shop owners keep great talent working in their businesses. In addition, each webinar attendee will receive an eBook titled, “The ABCs of Employee Retention: Searching for that elusive, I LOVE MY JOB!” For additional information or to register, visit: https://zoom.us/ meeting/register/7ac382bc4e47d3787c24e00bf0acd2b8
LABOR DEPARTMENT MOVES TO REVISE OVERTIME RULE The Department of Labor (DOL) has signaled that it may move to scale back the Obama-era rule expanding overtime eligibility that has been on hold for months. On June 27, the department sent a formal request for information on the rule to the Office of Management and Budget. Once OMB reviews the request and it’s published, the public will have a chance to submit comments on the rule, which would more than double the salary at which employees must be paid overtime - from $23,660 to about $47,500. Earlier this month, Labor Secretary Alexander Acosta said he planned to seek more input on the rule, which was blocked by a federal judge in Texas before it was supposed to take effect on December 1, 2016. The injunction was granted at the request of 21 states, the U.S. Chamber of Commerce, and other like-minded organizations that challenged the DOL’s authority to double the salary limit that determines which workers should be eligible for overtime pay.
NATIONAL NEWS Acosta told Congress earlier this year that an update to the overtime rule might be warranted, but that he had “serious questions” about the previous administration’s efforts to double the salary threshold. That “goes far beyond a cost of living adjustment,” Acosta said. He went on to say that an inflation-adjusted threshold would be about $33,000. Before the Trump administration took office, DOL appealed the injunction blocking the overtime rule. The DOL’s reply brief on appeal is due June 30, and most expect DOL to withdraw the appeal and propose a new version of the overtime rule following the public comment period on its request for information.
VOLVO CARS TO GO ALL-ELECTRIC Premium car maker Volvo Cars has announced that every Volvo it launches from 2019 will have an electric motor, marking the historic end of cars that only have an internal combustion engine (ICE) and placing electrification at the core of its future business. The announcement represents one of the most significant moves by any car maker to embrace electrification and highlights how, over a century after the invention of the internal combustion engine, electrification is paving the way for a new chapter in automotive history. “This is about the customer,” said Håkan Samuelsson, president and chief executive. “People increasingly demand electrified cars and we want to respond to our customers’ current and future needs. You can now pick and choose whichever electrified Volvo you wish.” Volvo Cars will introduce a portfolio of electrified cars across its model range, embracing fully electric cars, plug in hybrid cars and mild hybrid cars. It will launch five fully-electric cars between 2019 and 2021, three of which will be Volvo models and two of which will be high-performance electrified cars from Polestar, Volvo Cars’ performance car arm. Full details of these models will be announced at a later date.
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ESTIMATING TIPS Glass urethane preparation in CCC In the Motor Guide listed under Stationary Glass, Windshield Glass and Back Glass, a special notation states the following:
User override for frame labor All three estimating systems allow the user to manually override the labor type category when doing a frame replacement on a full-frame vehicle.
“Time for the removal of old adhesive, clean and preparation of sealing surfaces (vehicle and/or glass) should be estimated after an on-the-spot evaluation.”
Example: If the user wants to charge “MECHANICAL” on the frame replacement labor, Mitchell and Audatex allow you to choose from the drop down menu “Mechanical” in the labor type column. In CCC, the user would need to code the labor line as “M” on the right side of the labor column.
CCC/ Audatex storage and protection of removed and loose parts Recent inquiry 11017 estimated work times do not include wrap parts & label and warehouse components that are removed from the vehicle; however MOTOR’s estimated work times do include normal care & handling of components that are removed from the vehicle. MOTOR recommends negotiating “wrap parts & label and warehouse” with all interested parties, in the event such conditions are required. Audatex states this also would be a manual entry in its system.
Audatex labor report Shows the operations that may be performed for each panel on the estimate. This report includes: • The guide number where any overlap has been considered • The full labor of the panel before overlap consideration • All operations that may be applicable for a specific estimate The labor report is specific for each vehicle and provides a breakdown of included operations. This report is viewable on screen or printable for any estimate. To view the labor report, select Estimate reports>>Document to view>> select “Labor” from the drop down.
Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair.You can view these tips and others on the DEG website,WWW.DEGWEB.ORG.
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PARTNERS IN PREVENTION
Don’t Let Your Profits Go to “Waste” Products and materials in your shop can have multiple costs. Consider paint and cleaning solvent – first you have to buy it, then you have to pay a hauler to dispose of the waste. Later, you’ll have to pay state and county annual waste fees. Even the solvents that evaporate from drying paint can cost you air emission fees. What can you do about it? A lot. First, think about which materials are going out the back door to the trash rather than out the front door to a customer. Take a look in your dumpster or trash bins. What’s in there? Could it be recycled? Is it something that shouldn’t have been bought in the first place? Recycling is often cheaper than throwing something in the trash because recycled materials aren’t taxed, but the taxes on trash can be up to 50 percent. Have parts washer solvent replaced only when it stops cleaning. If you own your parts washer, consider adding a filter. The Iowa Waste Reduction Center has instructions at iwrc.uni.edu/resources/iwrc-manuals. The used filter will be hazardous waste if you use traditional solvents, but the cost of filter disposal will be offset by what you save from using solvent longer. Automotive fluids such as antifreeze and used oil can be
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recycled and reclaimed, but only as liquids – not when they are soaked into rags or kitty litter from cleaning up. Instead, clean up spills with a squeegee and dustpan, then tip the liquid into the appropriate drum for recycling. Would you rather see paint on masking or on a customer’s car? Minimize overspray by sending painters to regular refresher training. Painting well is a skill, and all skills can be honed, improved and updated. Good painters have value and are worth investing in. Consider installing an automatic gun washer, which reduces gun cleaning solvent waste, air emissions and employee exposure. Next, think about delayed costs. Manage your inventory closely – practicing “first in, first out” means fewer expired products to get rid of. You will also be less likely to order duplicates of something you already have but couldn’t find. Think twice before accepting samples. You’ll have to find time to evaluate any leftovers to determine if they are hazardous wastes, then pay to dispose of them if they are. Don’t add regulatory fines to your list of expenses.
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Hazardous waste containers must be clearly labeled with their contents and the words “hazardous waste.” Drums containing hazardous waste must have their bungs screwed in tight or funnels or snap rings locked. Clearly labeled containers also result in fewer mix-ups that can lead to more expensive disposal. Send in required reporting forms and annual license renewals on time. Last, know where to get rid of things. Do you have something to get rid of but you’re not sure what to do with it? Rethink Recycling has information on wastes and local listings at www.rethinkrecycling.com/business. If you have items you don’t want that someone else could use, such as shop products or maybe an old desk from the front office, the Minnesota Materials Exchange - www.mnexchange.org is a good way to find someone who wants them (for free!). More information is available on the MnTAP vehicle waste webpage at www.mntap.umn.edu/vehicle/waste.html and the MPCA automotive industry webpage at www.pca.state.mn.us/ pyrife8.
Products and materials in your shop can have multiple costs. What can you do about it? A lot.
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LOCAL NEWS continued from page 7
Thank You to Our Sponsors Sponsorships help AASP-MN deliver the quality programs members expect, and keep registration fees affordable. AASP-MN extends its thanks to the following companies:
GOLD SPONSORS AASP National Auto Value Parts Stores/APH Autoshop Solutions Axalta Coating Systems CBIZ AiA FinishMaster Meadowbrook Insurance PPG Automotive Finishes United Fire Group SILVER SPONSORS aaa Auto Parts Enterprise Rent-A-Car LKQ/Keystone Automotive O'Reilly Auto Parts PAMâ&#x20AC;&#x2122;s Auto, Inc. Suburban Chevrolet BRONZE SPONSORS Advance Auto Parts C.H.E.S.S. LEADERSHIP CONFERENCE ENTERTAINMENT SPONSOR Dent Impressions A LA CARTE Choice Auto Rental LEADERSHIP CONFERENCE VENDOR SPONSORS 1 Collision Network 3M Automotive Aftermarket Division AmeriPride Services Automotive Training Institute BASF Automotive Refinish Casualty Insurance of Chaska Dentsmart PDR Heartman Insurance Hertz Corporation IDENTIFIX Insurance Brokers of MN Matrix Electronic Measuring MN Dept. of Labor & Industry Monroe, Moxness, Berg, PA Net Driven Rapid Refill Safety-Kleen Sherwin-Williams Automotive Finishes
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How to Make a Reliable Evaluation of a Potential Insurance Carrier
Financial strength should always be an important consideration when evaluating an insurance carrier’s ability to provide the most comprehensive coverage for your business, says Dawn M. Jaffray, Senior Vice President and CFO at United Fire Group (UFG) Insurance. “You’re obtaining a policy based on something that may or may not happen and you’re paying a premium for that coverage,” Jaffray says. “You need confidence that if there is a loss, fire or major catastrophe, your insurer will be there to minimize the disruption to your business.” The inability to predict when, how or if a disaster will occur can make this a difficult question to reliably answer. Fortunately, there are plenty of resources available to help you assess the financial strength of insurance carriers and gauge their ability to give you, as the policyholder, the support you need.
How can you assess the financial strength of an insurance carrier? There are a number of financial measures you can use to make an accurate assessment as to the carrier’s financial strength: • Third-party rating agencies, such as A.M. Best Company These agencies provide an independent opinion on the financial strength of an insurance company • Risk-based capital – This figure shows the minimum amount of capital that an insurance company is required to have to support its overall business operations • Policyholder surplus – This figure shows the difference between a company’s assets and liabilities • Claims reserves – A figure that shows the funds set aside for the future payment of claims that have been incurred, but not settled These metrics should provide tangible, substantive evidence that either a carrier is well-positioned to respond when your company runs into trouble, or it’s not. If it’s a publicly-traded company, there is even more data at your disposal through the company’s required financial filings. Through your research, you should be able to get a good sense of the carrier’s balance sheet, its assets and its approach to its investment portfolio. Focus on the areas that demonstrate the carrier’s level of financial strength and use those findings to inform your decision. 20 August 2017
What other factors are important in the evaluation of an insurance carrier? Stability, longevity, reputation and industry expertise are all factors that can provide you with confidence that the carrier is up to the challenge of helping your company through a loss or a catastrophe. Look into how a carrier services its clients. Does it have a local presence, allowing you to build a more personal connection either with the carrier itself or through the agent that manages your policy? If you’re a growing company, examine the carrier’s growth plan and its capacity to continue providing the service you need as your business expands across the country and potentially around the world. Enterprise risk management should be important to any business. What types of proactive options are available to possibly prevent certain problems from occurring in the first place? What is the company’s approach to new liability concerns such as cyberrisk? Find ways to get in front of potential problems before they happen. These value-added services can go a long way in maximizing the benefit of your insurance expenses and minimizing your long-term costs. Look at what value-added service the insurer can give you beyond your policy.
How important is regular dialogue with an agent or carrier? If it’s a retail operation, the dialogue doesn’t change a lot and you may not need to talk very often. But if you’re making changes to your business such as adding warehouse space or purchasing new equipment, you may want more communication. When you meet, ask plenty of questions. If your service providers don’t know about a problem that your company is having, they can’t help you. Be open about your company’s needs and work with your providers, and in this case your agent or insurance carrier, to develop a policy that meets your needs and protects your business. For help with all of your insurance needs, contact Brad Schmid at CBIZ AIA at (763) 549-2247 or email@example.com.
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LEGISLATIVE UPDATE continued from page 5
assault or stalking. If an employer currently provides Paid Time Off to employees that meets the ordinance requirements, the employer does not need to provide a new and different benefit. Employers are required to keep track of ESST for their employees. The Ordinance prohibits employers from interfering with their employees’ right to use their ESST and an employer may not retaliate against an employee for exercising their rights under the Ordinance. Questions regarding the ESST Ordinance can be directed to the Department of Civil Rights, (612) 6733000 or firstname.lastname@example.org.
CITY OF MINNEAPOLIS MINIMUM WAGE ORDINANCE The Minneapolis City Council approved a municipal minimum wage
Date Jan. 1, 2018 July 1, 2018 July 1, 2019 July 1, 2020 July 1, 2021 July 1, 2022 July 1, 2023 July 1, 2024
Large business: five years $10 $11.25 $12.25 $13.25 $14.25 $15 $15 indexed to inflation $15 indexed to inflation
ordinance that requires large employers (100+ employees) to pay workers $15 an hour in five years and gives small employers (less than 100 employees) seven years to reach the same wage target. This ordinance will be phased in over the next seven years with slightly differing requirements for large and small employers. The year-by-year requirements are laid out in the chart above. The minimum wage policy will apply to anyone who works in Minneapolis for any period of time. The ordinance does
Small business: seven years No increase $10.25 $11 $11.75 $12.50 $13.50 $14.50 $15
not include an exception for tipped workers; all workers are subject to the ordinance, regardless of tips. After the target rate of $15 has been reached (July 2022 for large employers, July 2024 for small employers), the minimum wage rate will be indexed to inflation and increase along with inflation. Questions regarding the City’s minimum wage policy can be directed to the City Coordinators Office at (612) 6732032.
LET US TURN THEM AROUND!
Contact AASP-MN News Sales Director Alicia Figurelli
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CASH IN ON YOUR MEMBERSHIP!
AASP-MN Auto Employees Assessment System AASP-MN’s Auto Employees Assessment System, offered in conjunction with Assessment Associates International (AAI), will help AASP-MN members identify employees that not only have the technical skills for the job, but also good motivation, work habits and people skills. How does it work? Job candidates complete one of two questionnaires: - Service Advisor/Estimator - Technician - including mechanical, body or painter
Candidates are assessed on motivation, attitude, dependability, initiative and other "soft skills." Assessments are completed over the Internet, at any time of day or night and results are emailed to the employer within minutes of questionnaire completion. Scores are presented comparing the candidate to current, successful AASP-MN member employees. Shops use the information to identify candidates that are a good fit with their work environment. AASP-MN has validated these assessment tools, demonstrating their accuracy, fairness, and legal defensibility.
Why use it? - Enhanced employee effectiveness and fit with your work environment. - More good hires and less turnover. - Immediate results - a better bottom line for your shop. - Objective, valid and defensible hiring tool. - It's affordable! AASP-MN member pricing is 50 percent off retail price and starts as low as $15 per assessment.
Here's how: Contact Assessment Associates International at (952) 8546551 or visit https://auto.aai-live.com. For additional information about this or other AASP-MN member benefit programs, contact the AASP-MN office at (612) 623-1110 or email@example.com.
AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE Meadowbrook Insurance Group Contact: Brad Schmid 763-549-2247 / firstname.lastname@example.org Up-front scheduled credit makes Meadowbrook one of the most competitive programs around for Worker‘s Compensation insurance. In addition, members are eligible to receive an annual dividend based on the group’s loss ratio. For more information, log on to www.wcpolicy.com/aaspmn. PROPERTY/LIABILITY INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / email@example.com CBIZ AIA will present AASP-MN members with quotes from multiple carriers for property/liability insurance and members can choose the program that best fits their situation. As an added bonus, CBIZ AIA will offer members an exclusive 10% discount on their property/liability insurance premiums. Ask about our program with United Fire Group! EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / firstname.lastname@example.org Business Planning Professionals will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, longterm care and disability insurance. UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: Jim Dillon 651-955-1398 / email@example.com Discounted pricing to members on rental of uniforms, entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of their business with AmeriPride each year.
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INDUSTRIAL & PAPER PRODUCTS Wipers & Wipes, Inc. Contact: Dennis Julson 651-486-4866 Discounts on industrial supplies and paper products. Free, next-day delivery is available in the metro area. Shipping free to outstate members with $100 purchase. WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / firstname.lastname@example.org AASP-MN members receive a $500 discount off the Website Marketing Success Package set-up fee and special pricing on template websites starting at just $59/month and $149/set-up (regularly $79/month and $250 set-up). Net Driven Contact: Rich Mullen 877-860-2005, ext. 224 / email@example.com Net Driven is a market leader in website and internet marketing solutions designed exclusively for the automotive industry. AASP-MN members who choose Net Driven are eligible for a $500 discount off their 1st year setup fees. CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / firstname.lastname@example.org Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available. LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.
INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 Mitchell1 offers AASP members special savings on Mitchell 1’s ProDemand, Manager SE and Teamworks products. For more information, contact Customer Service at 888-724-6742, ext. 6986.
CHECK GUARANTEE SERVICES Certegy Check Services 877-520-2987 Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments.
Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit http://repaircenter.mitchell.com/Catalog/OEM Repair.aspx for more information.
SALES, MARKETING AND CUSTOMER SERVICE SOLUTIONS eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / www.emarketingsherpas.com eMarketing Sherpas provides AASP members up to a 10-percent discount on its Demand Engine CRM Suite, Review Engine online review and reputation marketing system and its Digital Lobby point of sale digital signage, menu board and interactive kiosks solutions.
AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / email@example.com / www.auto.aai-live.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50 percent off retail price and starts as low as $15 per assessment.
PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / firstname.lastname@example.org Members receive 20% discount off standard payroll products and services (excluding 401k). Members who switch prior to June 30 will receive first month of payroll processing free.
TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / email@example.com Discount rate on printed business forms and calendars.
BUSINESS COACHING 180biz 540-833-2014 / firstname.lastname@example.org Website: www.180biz.com Members receive a 20-percent discount on oneon-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 25-percent discount on monthly sales & management webinars as well as a 20-percent discount on all 180BIZ advisor training programs.
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