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John Yoswick

John YoswickJohn Yoswick is a freelance automotive writer based in Portland, Oregon, who has been writing about the collision industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).


He can be contacted at john@crashnetwork.com 

Tuesday, 05 October 2021 21:08

Lawmakers in 3 States Tackle Topics Impacting Collision Repairers

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Legislatures in three states in recent weeks have taken action on proposed laws related to auto body shop labor rates, dealerships’ sale of non-OEM parts and public disclosure of regulatory citations against shops. Legislatures in three states in recent weeks have taken action on proposed laws related to auto body shop labor rates, dealerships’ sale of non-OEM parts and public disclosure of regulatory citations against shops.

Index

...261%, the minimum wage increased 270% and the consumer price index increased 124% during the same period of time.”

 

“You cannot repair today’s vehicles based on the rates that were being paid 30 years ago,” Papageorg told the committee.

 

Frank O'Brien, vice president of state government relations for the American Property Casualty Insurers Association of America (APCIA) represented the insurance industry at the hearing.

 

He followed up Papageorg’s testimony by telling the committee, “There is no free lunch…If you add cost to a system, it puts price pressure on the product…It’s common sense. If you add cost to the system it’s going to have an impact on price, and that impact is not going to be to lower prices.”

 

Before moving forward with passing new legislation, the joint committee is in the process of establishing a commission to study the issue, “whether that means more hearings or visits around the commonwealth,” said Rep. James M. Murphy, the House chairman on the committee. “Evidently there is an issue because the body shops are all saying the same thing.”

 

At the conclusion of the testimony, Murphy sounded skeptical about insurance industry arguments against the legislation.

 

“I’ve heard today, and I’ve heard in the past, that any increase to the cost of the labor rate is going to automatically increase premium costs,” Murphy said.  “I don’t necessarily accept that. You’re going to have to show me why increasing a labor rate is going to increase premiums, because there are other ways that money can come out of the system to not increase premiums.

 

“The goal is not to raise premiums for consumers in the commonwealth,” Murphy concluded. “The goal is...


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