30 Fall 2016 Collision QUARTERLY collisionquarterly.ca

PERSPECTIVES

b y K e i t h J o n e s , C r a s h S p a c e A p p r a i s a l s L t d .

View from the Left CoastIt is time for organizations to work together, worry less about territorialism, and look at the bigger picture and issues facing the collision repair industry.

Editor’s note: the purpose of Collision Quarterly’s “Perspectives” section is to offer industry insider opinions on issues that affect the business of collision repair. Here, Keith Jones responds to a recent article in another industry publication about the Automotive Retailers Association.

I recently read an article in another trade publication (a publication that I respect), and I feel it really missed the mark.1 The article ventured directly into my wheelhouse and struck a

nerve. I would normally have let it slide, but I felt compelled to write a response. In my former roles at both the Insurance Corporation of British Columbia (ICBC) and the Automotive Retailers Association (ARA), I was deeply involved in the subject matter, which I feel needs additional information and clarification. I was contacted by the writer; however, after several emails back and forth about times to talk, I never heard back. It is unfortunate we didn’t connect.

Setting the record straight requires me to take a brief walk through history — please indulge me. The article makes several statements about the ICBC Material Damage Research and Training Centre (MDRT) that need correcting. ICBC opened the MDRT centre in 1987 to provide collision repair upgrade training to the collision repair

industry and ICBC staff. The MDRT facility included approximately 8,000 square feet of classroom area, and a 7,500 square foot collision repair shop where instruction on the latest technologies and repair techniques was delivered using the latest collision repair equipment, including resistance spot welders, aluminum welders, multiple frame machines, and electronic measuring equipment.

In the early days, ICBC delivered I-CAR courses, and several ICBC managers sat on the I-CAR board of directors. However, that relationship ended in the early 1990s, and ICBC began develop their own courses. None of this work was contracted out. All courses were developed and delivered by the highly

qualified staff at MDRT. The staff members were hard-working, dedicated, and highly-qualified employees of ICBC. Their qualifications included red seal technicians (refinish, collision repair, and mechanical), collision estimators, an engineering technologist, a college engineering instructor, and collision reconstruction expertise.

The training delivered was anything but basic. The courses developed by the MDRT were some of the best in the industry, delivered by outstanding technicians and instructors. Each course was researched thoroughly and up-to-date, and most had a hands-on component in the shop. Collision repair upgrade training wasn’t exclusive to ICBC coursework. Many companies also provided collision repair upgrade training in B.C., approved by ICBC for the c.a.r. shop accreditation program. A complete list of approved training and their providers can be found on the ICBC Business Partners site.

The quality of the ICBC-developed courses far exceeded the I-CAR curriculum of the day. I am very glad to say that this is no longer the case, as I-CAR course quality has increased dramatically. I am a long-time supporter of I-CAR, since the days when my friend Robby Robbs ran the show. I was proud to represent ICBC as a member of the 2008 I-CAR Canadian Advisory Committee and the 2010 I-CAR International Board nominating committee. During my tenure at ICBC, I tried to bring I-CAR and ICBC together several times; however, the resistance I faced internally was too great to overcome. In any case, I did manage to approve many I-CAR courses for the ICBC

“The article ventured directly into my wheelhouse and struck a nerve; I would

normally have let it slide.

1 Collision Repair Magazine, “Ready to Train? ICBC transfers training to ARA,” page 45. https://issuu.com/collisionrepair/docs/crm_15_4_web/5?e=1526018/30000297

Keith Jones, Crash Space Appraisals Ltd.

collisionquarterly.ca Collision QUARTERLY Fall 2016 31

c.a.r. shop accreditation program. The writing was on the wall for MDRT

shortly after ICBC appointed a new claims executive in 2007, who came with a very different agenda and claims management strategy. Then came the much-publicized “Chop Shop” scandal of February 2008 — enough said about that! About three months after this event, I was given the responsibility of the MDRT, and tasked with redefining its mandate and developing the strategy going forward. The facility was rebranded the Collision Repair Learning Centre (CRLC), and over the next two years, the number of courses delivered increased by 100 percent. We worked with the ARA to develop a series of new online courses. The CRLC also developed the “Matrix” group of courses (four up-to-date and topical courses on the latest collision repair technology).

It was an uphill battle for the existence of the CRLC. The decision makers of the day placed very little value on what the facility delivered. When the large management cull occurred in November of 2012, ICBC experienced a huge loss of material damage history and knowledge. The knowledge drain continued, as many senior managers left in the following years. The belief and understanding of the true value of the CRLC was gone.

The loss of MDRT/CRLC is a greater loss than most know. Aside from the upgrade training, the MDRT/CRLC was who the collision repair industry contacted when they needed to find out more information about leading-edge technology and the latest repair techniques. The phones rang every day, answered by qualified staff that provided expert advice.

The centre also conducted valuable research in many aspects of automobile construction, collision repair techniques, and vehicle safety. ICBC was a member of the Research Council of Automotive Repairers (RCAR). RCAR is an international body of automotive research centres, whose primary goal is to reduce the human and economic costs of motor vehicle losses (rcar.org). Currently, RCAR has 25 members in 20 countries and five continents: Europe, Asia, North America, South America, and Australia. ICBC participated in many RCAR working groups and vehicle safety/collision repair

projects that provided immeasurable value for drivers in B.C. and throughout the world. Most notably, ICBC was the co-developer of the Head Restraint Measuring Device, which defined for automakers the correct head restraint geometry for safer seats.

As far as delivering training to the collision repair industry, it is time ICBC stepped away. The responsibility to train the collision repair industry belongs to the industry. At present, there is no single entity in B.C. that provides ongoing technical upgrade training and education for the automotive industry. Trade schools focus mainly on training new technicians, and vehicle manufacturers provide training for their dealerships and repair networks. The absence of a coordinated training and education plan presents a significant risk to the motoring public in B.C. Improperly repaired vehicles pose a danger to motorists and the automotive aftermarket and service industries.

“As far as collision repair, rates in B.C. remain some of the

highest in the country, thanks to the continued

advocacy of the ARA.”

No one is attempting to reinvent the wheel here in B.C. You have to remember that the training requirements for the ICBC c.a.r. shop collision repair accreditation program are set by ICBC. I lobbied senior management at ICBC back in 2009 to change the training requirements from what they were to the I-CAR Gold Class recognition. ICBC is one of the last holdouts in North America. Their collision repair accreditation program, once probably the best in the industry, has not

evolved. While ICBC has introduced a DRP program (Express Repair) and a performance component, the accreditation standards remain virtually unchanged since the introduction of the accreditation program in 1996. I am hopeful, as is the ARA and many other collision industry professionals in B.C., that ICBC will move to accepting the I-CAR Gold Class recognition as their training standard in the near future.

The ARA training strategy has never been to hire a bunch of trainers and start developing ARA training. The association’s strategy is around facilitation and creating partnerships. To quote ARA Industry Relations Advisor Dave Ribeiro:

“The vision of the ARA is not to become trainers, nor to hire a workforce to conduct this training, but to create a world-class automotive Centre of Excellence… The ARA intends to do what we do best — provide the interconnection between trainers and industry to ensure that the correct and most current training is accessible to all of industry.”

The ARA has been working with the provincial government to make this Centre of Excellence happen by developing a strategy to fill the training gap and leverage its strength as an association representing over 1,000 automotive business in B.C. I followed up with Rick Francoeur of CARSTAR Abbotsford (360 Fabrication) regarding his comments in that other trade publication article. After ARA representative Dave Ribeiro visited Rick’s shop and explained the ARA strategy around training and the association’s intent to utilize the I-CAR curriculum, he expressed satisfaction with the ARA’s direction.

The article stated that the “ARA lost its right to lobby on behalf of its members.” Nothing could be further from the truth. When ICBC sought an opinion from the Competition Bureau and announced that

continued on page 32

“The ARA has been working with the provincial government to make this

Centre of Excellence happen by developing a strategy to fill the training gap and

leverage its strength as an association.”

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due to changes in the Competitions Act they will no longer negotiate with trade associations or other industry representative groups on labour rates, they changed the rules of the game. However, the ARA remains the key stakeholder representative for the automotive industry in B.C., and as an association, it continues to participate with ICBC in committee work and liaison groups.

As far as collision repair, rates in B.C. remain some of the highest in the country, thanks to the continued advocacy of the ARA.

ICBC is the only provincial insurer that has concluded that negotiating with a trade organization contravenes the

Competitions Act. Manitoba Public Insurance and Saskatchewan Government Insurance certainly do not share ICBC’s opinion. ICBC placed a stake in the ground based on an opinion that very few have seen. I think it would be best for both the collision repair industry and ICBC if that opinion was finally shared, lifting a veil of mistrust from both sides.

That being said, the perceived inequality in bargaining power may benefit the ARA and give the association greater advocacy power with the provincial government. I would tend to agree, and I would even go so far as saying that it is ICBC

who has lost their power because of their position over the Competitions Act, as they have lost a measure of control and influence over the industry. Also, don’t forget that the ARA also represents seven other sectors of the automotive industry in B.C., not just the collision industry.

I am disappointed someone from across this great country would call into question the ARA and its strategic direction without getting all of the facts. The ARA has been representing the automotive industry for over 60 years in B.C., and many seem to have forgotten its many accomplishments over the years. As the industry continues to face challenges and change, it is time for organizations to work together, worry less about territorialism, and look at the bigger picture and issues facing the collision repair industry.

Keith Jones is the managing appraiser of Crash Space Appraisals Ltd. He can be reached at keith.jones@crashspace.ca. n

“The ARA has been representing the automotive industry for over 60 years

in B.C., and many seem to have forgotten its many accomplishments.”

continued from page 31