Page 20 - Australasian Paint & Panel magazine May-June 2022

20
News • In Focus
PAINT&PANEL
MAY / JUNE 2022
WWW.PAINTANDPANEL.COM.AU
PARTNER
Repairers have reported one insurance company has not adjusted the price it compensates repairers for automotive paint and coatings for an unbelievable 14 years. Now, and despite three increases in price by one paint company in the past 14 months, they still refuse even to sit down and discuss the matter," he said.
MTA NSW CEO, Stavros Yallouridis said the MTAA, on behalf of MTA NSW and State and Territory Associations and the Australian Motor Body Repairers As- sociation has written to the Insurance Council of Australia seeking an urgent summit to discuss resolving the issue before further businesses close for good.
"Collision repair small businesses are already dealing with historic skills short- ages and ballooning labour, parts and materials costs, and adapting to chang- ing technology and materials in new cars,’ he said. ‘The (cost of) containers that bring parts, panels, components, wheels, accessories to our shores have in- creased by 453% since before Covid.”
One insurance
company has not adjusted the price for paint and coatings for an unbelievable 14 years.”
He added that these costs are being passed directly to small businesses without any ability to have these cost increases reflected in compensation. "In addition, the behaviour of the in- surance industry over many years in failing to properly address the rising costs of materials in the supply chain is totally inconsistent with their obliga- tions under the ‘Motor Vehicle Insur- ance and Repair Industry Code of Con- duct’. Those obligations require the insurance industry to promote coopera- tive relationships between smash re- pairers and insurance companies based on mutual respect and open communi- cation. If the insurance industry con- tinues to flout their obligations under the Code, then the only action left is legislative intervention by Government to force the insurance industry to be- have in a manner consistent with their obligations," Yallouridis said.
NOT PARIAH
MTAA SUPPORTED BY MTA NSW SAYS IT'S TIME FOR INSURANCE COMPANIES TO COMPENSATE AUSTRALIA’S COLLISION REPAIR INDUSTRY ADEQUATELY, FAIRLY, AND REASONABLY.
USTRALIA’S COLLISION RE-
pair industry must be treated as a partner rather than a pa- riah by insurance companies ig- noring mounting skills shortages, high labour and crippling supplier costs. The Motor Trades Association of Australia (MTAA) supported by the Motor Traders’ Association of NSW (MTA NSW) says in- creasing costs because of supply chain delays and increases caused by the pan- demic, are compounding already unsus- tainable cost containment business prac-
tices by insurance companies.
MTAA CEO, Richard Dudley says oth-
erwise successful, sustainable collision
repair businesses are being brought to the brink of collapse because insurance companies fail to compensate collision repairers fairly and reasonably.
"For decades, insurance companies have deployed deliberate cost contain- ment strategies by denying to adequate- ly pay for some legitimate costs in- curred and refusing to consider meaningful adjustments for rising la- bour, parts and materials and business operation costs," Dudley said.
"Collision repairers have exhausted productivity improvements, and cost ab- sorption strategies across all expense are- as of their business and enough is enough.
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