Motor Trade June 2022 NT by Boylen

June 2022

Official Magazine of the Motor Trade Association SA/NT

GROWING THE PIPELINE OF SKILLED TECHNICIANS HYBRID AND BAT TERY ELECTRIC VEHICLE TRAINING AMPS UP!

APPRENTICE MENTOR FOR THE TOP END

We’ve seen the next big thing a thousand times. It’s never too big. We’ve been in the industry long enough to understand that change is inevitable. It’s why we identify and develop services so Members have the strength to overcome today’s challenges, as well as tomorrow’s.

Join Australasia’s largest automotive cooperative join@capricorn.coop | capricorn.coop

MOTOR TRADE MAGAZINE: NT

CONTENTS

JUNE 2022 STRENGTH TO STRENGTH FOR E2E AUTO

 SKIP TO ARTICLE

WHS ACT

TOP MENTOR FOR THE TOP END Shaun O’Brien is no stranger to the MTA, having completed his adult apprenticeship as a light vehicle technician last year. Now, as the Northern Territory’s new Apprentice Mentor, he’s helping to improve the retention of first-year automotive apprentices through building relationships and raising awareness of the MTA’s activity across the NT.

Key Issues for New Federal Government to Address

Spirit Super: New Name, Same Dedication

Occupational Licensing & Compliance Team – Motor Vehicle Dealers

Top Mentor for the Top End

Unfair Dismissal – There’s a Right and a Wrong Way!

Hall of Fame: REDARC Electronics

Business Partners Index

Strength to Strength for E2E Auto

Code of Conduct Committee Agrees to Code Review

Back in the Day with MTA: June 1982

Member Classifieds

Used Vehicle Sales

Publishing Details

Chair’s Report

CEO’s Message

Getting Ahead of the Power Curve

New Cabinet to Drive Territory’s Economy Forward

WHS Act Employer Obligations

Managing Mental Health in the Heavy Vehicle Sector

New MTA Members

Three years ago, Engine 2 Exhaust Automotive was established as a small business. Instantly growing in popularity, Gorden was able to start employing staff and took on an extra shed across the road.

 SKIP TO ARTICLE Health and safety is paramount for all businesses, but the automotive industry in particular offers up specific risks that need to be considered.

USED VEHICLE SALES

 SKIP TO ARTICLE Some second-hand car dealers may advertise that they offer “the best deals on used cars in the world”, but misleading and deceptive conduct can be prohibited under law.

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CHAIR’S REPORT

CHAIR’S REPORT MTA CHAIR, FRANK AGOSTINO

The past two years have been turbulent in a way that the automotive industry has never experienced before, and so it is welcome to see most restrictions placed upon businesses wound back. However, the challenges before industry remain ongoing whether it’s skill shortages and evolving technology, or disruptions to supply chains and a rising cost of doing business. At a macro level, global forces of interest rates, inflation and international conflict are influencing market expectations. Despite this volatility, it pays to keep updated on major industry trends and so our continued sharing of information with members remains a primary focus. So while many businesses ponder what the ‘new normal’ looks like, you can rest assured that the MTA will keep you supported, informed and represented. Anthony Albanese has been elected at Australia’s 31st Prime Minister meaning that industrial relations, emissions targets and skills policy will be front and centre for the MTA to engage with. At a Territory level, Natasha Fyles has been chosen as the new Chief Minister and we thank Michael Gunner for his service to the Northern Territory. Pleasingly, the NT Government has listened to the MTA’s calls for automotive to be recognised as an essential service so that our industry can safely continue to work to ensure the mobility of all Territorians. The major challenge will undoubtedly be in growing our

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“Pleasingly, the NT Government has listened to the MTA’s calls for automotive to be recognised as an essential service...” relationships with the new ministers at a Territory and Federal level. This means ensuring that the automotive industry is recognised for the more than $500 million we contribute to the Northern Territory economy through 700 businesses who employ 4,000 people. I would like to thank Richard Dudley, CEO of the Motor Trades Association of Australia (MTAA) for his presentation at last month’s Industry Advisory Council (IAC) meeting to update members on the substantial initiatives and policies delivered at a national level such as the right to repair scheme, franchising reform and funding for an end of life vehicle scheme. So while borders have reopened to skilled migration, the single biggest thing that we can do as an industry to fight skill shortages in the long term is to continue to take on apprentices and grow the pipeline of skilled technicians available.

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FO C EO L I’ O S M P LE AS CS EA HG O ELDER

CEO’S MESSAGE MTA CEO, PAUL UNERKOV

The pace of change in running a business in the automotive industry can at times be hard to keep up with, but the one consistent message I get when I visit MTA members is that skill shortages remains the number one challenge for our industry. The MTA has been listening closely to what members are telling us at zone, divisional and Industry Advisory Council (IAC) meetings and this feedback has been an important part in shaping our response. Our new Automotive Industry Careers Mentor, Shaun O’Brien has made substantial inroads to sign up apprentices in the Northern Territory. This program was in direct response to the May 2021 IAC meeting which discussed skill shortages. Since Shaun started in early March, he has approached over 40 industry businesses, with 20 apprentices signed up to the program and 10 apprentice mentoring sessions conducted. If you have not yet met Shaun and have an apprentice you believe would benefit from the program, then I encourage you to get in touch with us so we can let you know more about what we are doing to help retain apprentices in the automotive industry. You can read more about his work on page 24 . A particular thank you must also be given to Minister for Business, Jobs and Training, Paul Kirby and the NT Government for partnering with us to deliver the program. The MTA has also established itself as a leader in hybrid

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and battery electric vehicle training which has seen us deliver our first course at Charles Darwin University in May. As your business begins to see more of these vehicles enter your workshop, it is critical that you get the right training to ensure the safety of your staff and I encourage you register your interest  for our courses on our website or contact us directly to find out more. The NT 2022 TIO Automotive Awards has been locked in for Mindil Beach Casino on November 25, so this is a timely reminder to think about nominating apprentices who have demonstrated commitment and excellence in the automotive industry. Watch out for nominations being called shortly. 1 July 2022 will be a significant milestone for the industry with the motor vehicle service and repair information sharing (Right to Repair) scheme scheduled to launch meaning that all businesses with qualified technicians will be able to access service and repair information at a fair market price. While Natasha Fyles is the Northern Territory’s new Chief Minister, the new cabinet sees many existing faces in consistent portfolios relevant to automotive, so it is good to know that as I continue to meet with them that they already have an understanding of what automotive needs and how we can work together for the benefit of industry. One thing for sure; the MTA’s voice is, and will remain, heard at the highest levels of Government. We are, after all, stronger together.

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SKILLS

GETTING AHEAD OF THE POWER CURVE Located in a small township on Phillip Island, 140km southeast of Melbourne, Trackside Garage owner Tom Christensen can see the future of electric vehicles (EVs) will be here sooner than we know it. “I believe it’s coming faster than most people expect it will,” said Tom. That’s why, despite considering other courses in Queensland and Victoria, Tom made the trip to South Australia to undertake the nationally accredited Hybrid and Battery Electric (HEV/BEV) five-day course earlier this year. “I wanted to ensure any training I did would hold up when the new Australian standard is completed,” he explained. “The current industry standards are being re-written with the rise of new technology – it’s an ever-expanding field. “The subject matter was thorough, and trainer Steve Richardson was very patient and concise with his instructions. There was a good mix of practical activity in the workshop and theory.” Tom has been toying with cars as soon as he could pick up a spanner, but was formally trained in the military before making the move into automotive as a mature-aged apprentice. He’d always seen EVs as the future of the industry, and an important way to help address climate change.

“We’re now reaching a pivot point on price where it is more cost effective to move to an EV, which will become more apparent in the next six to 12 months,” he said. “At the moment, we’re currently only servicing electric passenger cars, but there are more commercially-focused vehicles arriving in the next few years. Notably, electric dual cab utes are expected to reach Australia in the last quarter of 2023.” But the industry needs to keep up with the skills required to service and repair these vehicles safely. “Most people wouldn’t realise the scope of energy in these vehicles – currently an EV can have a power supply of up to 700 volts varying from direct current as well as a portion of the system using alternating current. That is significantly more than a domestic power point and a licensed accreditation is required to carry out that work,” Tom said. “It’s important that people aren’t complacent – specialist training is very much required to work on these vehicles. “Many new and more affordable EV options for Australian consumers are on their way and I am keen to be ready to meet that need. “It’s only a matter of time.”

THE HYBRID AND BATTERY ELECTRIC VEHICLE 5 DAY COURSE COVERS THE FOLLOWING UNITS: AURETH101 Depower and reinitialise battery electric vehicles AURETH002 Service and maintain battery electric vehicles AURETH103 Diagnose and repair high voltage rechargeable energy storage systems in battery electric vehicles AURETH107 Diagnose and repair system instrumentation and safety interlocks in battery electric vehicles AURETH110 Diagnose and repair high voltage rechargeable energy storage systems in hybrid electric vehicles AURETH011 Depower and reinitialise hybrid electric vehicles AURETH012 Service and maintain electrical components in hybrid electric vehicles Register your interest here 

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SKILLS

Trackside Garage owner, Tom Christensen.

Trackside Garage 

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F O L I O P L A AC DE VH OO CL A DC ER Y

NEW CABINET TO DRIVE TERRITORY’S ECONOMY FORWARD The NT has seen significant political change since the last issue, with Natasha Fyles taking over as the new Chief Minister and the announcement of a new ministry. The Chief Minister said the new ministry is focused on continuing to drive multiple next generation projects and on working hard for Territorians. “Our new cabinet … will focus on strengthening the economy and tackling social challenges across the Territory,” said Ms Fyles. “The new ministry will help keep our cabinet and caucus stable and balanced during this important time of change. “We are prioritising sustainable communities for all Territorians with a transparent, united and stable government.

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“… our team will continue putting our focus on our first priority – serving Territorians.” Some of the key Ministers portfolios for the automotive industry are: Natasha Fyles •

Chief Minister

Nicole Manison

Paul Kirby •

Business, Jobs and Training

Lauren Moss •

Mental Health and Suicide Prevention

•

Youth

Kate Worden •

Police, Fire and Emergency Services

•

Deputy Chief Minister

•

Mining and Industry

Chansey Paech

•

Northern Australia and Trade

•

Attorney-General and Minister for Justice

•

Minister for Racing, Gaming and Licensing

Eva Lawler •

Treasurer

•

Education

•

Infrastructure, Planning and Logistics

•

Territory Development

The MTA would also like to thank Michael Gunner for his service to the Northern Territory as the former Chief Minister.

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New name. Same love for the motor trades. Some things never change — like our support for the motor trades. Low fees. A history of strong returns. Excellent service. We’re the super fund with spirit. spiritsuper.com.au

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Issuer is Motor Trades Association of Australia Pty Ltd (AFSL 238 718, ABN 14 008 650 628). Consider your position, the PDS and TMD available at spiritsuper.com.au/pds before making a decision. Past performance isn’t a reliable indicator of future performance.

W O R K H E A LT H & S A F E T Y

“It is important for a business to take their health and safety duties seriously, as a breach of these duties may result in prosecution resulting in significant penalties.”

WHS ACT EMPLOYER OBLIGATIONS Health and safety is paramount for all businesses, but the automotive industry in particular offers up specific risks that need to be considered. We’ve broken down the rules surrounding the conduct expected of you, a business owner, and included some examples of how best to manage those.

•

a safe work environment

All Persons Conducting or Undertaking Business (PCBU) have a primary duty of care under section 19 of the Work Health and Safety Act 2012 (“the Act”) to ensure, so far as is reasonably practicable, that the health and safety of their workers is not put at risk from the conduct of the business or undertaking.

•

policies and procedures and safe work practices in place

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a work environment and work culture free of discrimination, harassment and bullying

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adequate facilities and training to support the welfare of workers

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safe plant and structures

It is important for a PCBU to remember that this duty of care also applies to others in the workplace, for example: clients, visitors, customers and volunteers. Further, in accordance with section 14-17 of the Act:

You must also provide all workers with:

•

a duty cannot be transferred to another person

•

a person can have more than one duty (eg duties as a manufacturer as well as duties as a PCBU to workers and others)

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duties of care may be shared, such that more than one person can have the same duty at the same time

Your responsibilities To ensure compliance with the duties of care as a PCBU under the Act, you must ensure you have:

•

an induction into the business

•

sufficient information, instruction, training and supervision to ensure that they are competent to work safely i.e. do not give workers tasks unless they have the necessary skills

If you have a new worker, you should: •

give them your time in providing a thorough induction

•

encourage them to ask questions and report hazards

•

make sure they are competent prior to using any plant and equipment

•

take them through your procedures to convey safety standards and expectations

It is important for a business to take their health and safety duties seriously, as a breach of these duties may result in prosecution resulting in significant penalties. The following prosecution was successfully pursued recently by SafeWorkSA through the South Australian Employment Tribunal (SAET):

CASE STUDY – MARTYN CAMPBELL V F LAUCKE PTY LTD

•

any necessary personal protective equipment

In October 2020 a worker suffered fatal injuries when they were crushed and asphyxiated in a pneumatic slide-gate.

•

current health and safety policies and procedures

Workers were periodically required to access the inside of the surge bin of a

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W O R K H E A LT H & S A F E T Y

pellet press to clean and maintain it. It was possible for a worker to access the interior of the surge bin through an access hole at the top of the bin. This access hole was covered by a hatch that was not interlocked and could be opened without tools. Materials were fed into the surge bin from two other bins located above the surge bin. The flow of materials between the bins was controlled by a pneumatic slidegate. When the pneumatic slide-gate was open, it would move to cover the access hole.

off the airline to the hydraulic gate. Unfortunately, closing off the air supply had failed to isolate the slide gate and prevent it from activating.

•

a safe work environment (as it was possible for a worker to access the inside of the surge bin while the pneumatic slide-gate was operational)

It was possible for a worker to remotely operate parts of the pellet press, including the pneumatic slidegate, from a control room.

•

a safe system of work for the task (as they did not perform an adequate hazard identification and risk assessment process which properly identified and assessed the above mentioned risk)

It was also possible for a worker to access the interior of the surge bin while the pneumatic slide-gate was operational. There was a risk that a worker’s head, neck and/or body may be struck and/or crushed by the pneumatic slide-gate whilst accessing the interior of the surge bin. On the day of his death, the worker attempted to clean the build-up of mash at the bottom on the surge bin. As per instructions, the workers asked the press operator to close

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F Laucke Pty Ltd exposed workers to a risk of serious injury or death by failing to ensure, so far as was reasonably practicable:

F Laucke Pty Ltd pleaded guilty in SAET for breaches of section 32 of the Work Health and Safety Act 2012 (SA) resulting in a conviction, a fine of $650,000 (reduced to $390,000 after discount for early guilty plea) plus legal fees. Hazard identification and risk assessment and control is an ongoing process. Therefore, reviews of the hazard assessment and control

measures should take place at least once every three (3) years. Members should ensure that: •

a hazard and risk assessment is carried out when there is a change to the workplace, including when work systems, tools, machinery or equipment change

•

additional supervision is provided when new employees with reduced skill levels or knowledge start in the workplace

•

control measures are regularly reviewed in consultation with the workers. A review may also be warranted if the control measure no longer controls the risk it was implemented to control, or a new hazard or risk is identified

For more information on the topics above, Code of Practice documents are available on the SafeWork SA and the NT WorkSafe website. For direct support on any of these topics, members are encouraged to contact the MTA Workplace Relations team on 8291 2000 or at wr@mtasant.com.au .

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H E A LT H Y H E A D S

HEALTHY HEADS IN TRUCKS AND SHEDS Over the past couple of decades, the conversation about mental health in the workplace has shifted from being a taboo topic to one of importance, with discussions actively encouraged. Australian workplaces now recognise the importance of good mental health amongst their staff, as evidenced by the universal success of the Are You OK? Day campaign. One automotive industry with an abnormally high percentage of its workforce suffering from mental health conditions is the freight and logistics industry. With a growing number of logistics companies becoming MTA members, and most other members relying on the services of logistics in some form or another, it is important to bring the issue to the attention of all members. According to recent data, a staggering 44.8% of all truck drivers, distribution centre and warehouse staff, and

other related road transport workers experience a mental health condition at some point during their career. 38.2% of these workers stated that their workplace caused the condition or made it worse. Drivers with depression are seven times more likely to be involved in a crash than those without. These statistics are frightening, but there is hope. The Healthy Heads in Trucks & Sheds Foundation  was established to directly combat these statistics. The relatively new not-for-profit organisation, founded in 2020, was designed with the sole purpose of combatting these statistics, and changing the narrative of mental health amongst industry workers across Australia. The initiative is a membership service, whereby businesses and individuals who choose to join are given access to tools and guidelines to address issues in their workplace, as well as webinars, valuable information, and more. Membership to this organisation is free, allowing all in the logistics industry access to this important service.

Perhaps the most important aspect of the membership is its ability to act as a conversation starter in workplaces across Australia, igniting action after long overdue conversations about the mental health and wellbeing of industry workers. Starting these discussions can be difficult. The ‘when’ and ‘how’ of these conversations is unique to each workplace. The MTA Workplace Relations team is always on hand to answer your questions and provide guidance on the topic to any and all members. Although the Healthy Heads in Trucks & Sheds Foundation offers advice and services to aid in combatting poor mental health in the workplace, people seeking immediate help, no matter how big or small their issue, should contact one of the services below:

BEYOND BLUE

1300 22 4636 | Visit Beyond Blue 

LIFELINE

13 11 14 | Visit Lifeline 

MENSLINE AUSTRALIA

1300 78 99 78 | Visit MensLine Australia 

Membership to this organisation is free, allowing all in the logistics industry access to this important service. Perhaps the most important aspect of the membership is its ability to act as a conversation starter in workplaces across Australia, igniting action after long overdue conversations about the mental health and wellbeing of industry. mtasant.com.au

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Business support every step of the way. Whether you’re starting, running or growing your business, CommBank, proud Alliance Partner of MTA SA/NT can help you do business your way. Dedicated support for your business To help you take your business to the next level, MTA SA/NT members can beneﬁt from direct access to a dedicated CommBank Relationship Manager and team of banking specialists. They’ll work with you through every stage of your business life cycle. You’ll also receive 24/7 Australian based phone support for all your business banking needs. Business products and solutions MTA SA/NT members may be eligible to access the latest innovative business banking products and solutions with preferential pricing applied, making it easier for you to do business. These include: No merchant joining fee

Business Loans and Asset Finance

Same day se�lement every day of the year^

Overdra� Facilities and Bank Guarantees

Daily IQ - free business insights tool with CommBiz and NetBank

Free business ﬁnancial health checks

To ﬁnd out how CommBank can help you do business your way, contact MTA SA/NT by email mta@mtasant.com.au or call 08 8291 2000 and they’ll put you in touch with a CommBank Relationship Manager.

Things you should know: ^‘Same day’ includes eCommerce card sales before 5:30pm (AEST) and EFTPOS card sales before 10pm (AEST) and is available for eligible customers with a Commonwealth Bank business transaction account and a linked Commonwealth Bank merchant facility. Offers available to referrals made via MTA SA/NT. MTA SA/NT may receive a referral fee from Commonwealth Bank for each successful referral (excludes existing customers). Applications for finance are subject to the Bank’s normal credit approval and suitability of the asset. Other fees, charges, terms and conditions may apply. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances. Please view our Merchant Agreement, Financial Services Guide and Operator and User Guides at commbank.com.au/ merchantsupport. To find out more about Daily IQ, visit commbank.com.au/DailyIQ. Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit licence 234945.

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NEW MEMBERS

NEW MTA MEMBERS

Danny Maxwell Automotive Solutions 

Nikitas Kypreos N&N Quality Cars 

Todd Waters TBR Group 

Jesse Yepp Palmerston Youth Skills Centre 

Cord Goodger Palmerston Auto Repair Centre 

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F OE LMI BO E PR L PA RC OE FH IOL LE D E R M

HALL OF FAME: REDARC ELECTRONICS BY LUCY BREWER

(L-R) Paul Unerkov celebrating with Anthony Kittel from REDARC Electronics after he was inducted into the Australian Auto Aftermarket Awards Hall of Fame.

Anthony Kittel, Managing Director and owner of REDARC Electronics, was recently inducted into the Australian Automotive Aftermarket Awards (AAAA) Hall of Fame. Anthony is an engineer by trade, and entered into ownership of REDARC in 1997. REDARC have been a valued MTA member since 2017 and just recently sponsored the MTA Automotive Graduation and Awards, showing their dedication to support the next generation of skilled technicians. REDARC was founded in 1979 by an electronics engineer named Bob Mackie. Bob initially ran the business from the back room of his house, and designed an ignition system for a Porsche 911. The first prototype built had a red arc, and the company name was born. Over the next eighteen years, Bob developed the business, building a range of voltage converters for both the trucking and automotive industries. After Bob passed away, his wife ran the company under management for two years, before Anthony came along. “When my wife Michele and I bought the business, we had eight people,” said Anthony. “Today, we have 350.” Anthony, who began his career as an engineer at BHP, had worked in automotive product manufacturing

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for ROH for a number of years before taking the helm at REDARC. Since taking over the company, he has diversified REDARC’s product offering. The company now services not just trucks and cars but caravans and camping vehicles, the mining industry, and more recently, the defence and space sectors. “We invest heavily in innovation and product design,” he said. The AAAA Hall of Fame induction came as a complete shock for him. “It’s a great honour to win the award,” he said. “[I’m] very passionate about manufacturing in Australia … it’s a nice reinforcement that our efforts to keep making product in Australia have been recognised, and also to know that a small company with eight people… we can grow to the size of the company we have.” Of REDARC’s trajectory, Anthony said the focus is on continuous improvement. There is more automation, and artificial intelligence and augmented reality have been introduced as tools for the engineers. Fittingly, REDARC was also honoured at the biannual AAAA. The company was awarded the Excellence in Manufacturing award for the fourth time in a row. “[It was a] nice reward for our team that work so hard to be globally

REDARC 

competitive with the products that we make,” he said. While REDARC services a wide range of customers, the core business is to supply products in the automotive industry and to the trade customers. Anthony named the Motor Trade Association (MTA) members as vital to helping REDARC provide to its trade customers. “We see the MTA has a really key role in training and upskilling within the industry… that’s important for us and that’s why we continue being a member of the MTA … to make sure we’re supporting the industry that supports us.” As for the future of REDARC, Anthony said the goal is to increase export sales, particularly in North America, as well as investing and growing in the defence sector. The space sector also holds a future for REDARC, with the business building sensors and electronics that need to withstand extreme conditions. “It’s all about remaining relevant and looking after your customers,” said Anthony. REDARC also focusses on giving back to the community, and supports a number of organisations, including Catherine House, the Hutt St Centre and Youth Opportunities.

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MEMBER STORY

Engine 2 Exhaust Automotive 

STRENGTH TO STRENGTH FOR E2E AUTO If you’ve driven down Berrimah Road, Darwin this year, you may have noticed MTA member Engine 2 Exhaust Automotive’s new signage just off Stuart Highway.

“We just got too big to be doing that. I couldn’t be in both places at once, even though we had a mechanic and an apprentice,” he explained.

Owner Gorden Bull describes the 50m fence banner as something visible from the moon.

“We just needed to have somewhere we could have everything under the one roof.”

“The building is set off the street, and it’s got a big fence around it,” Gorden explained.

The new workshop currently houses four hoists and a dyno, and has enough space to accommodate an additional two hoists should the need arise.

“We thought that if we put signage on the building, it’s not going to be overly visible, whereas if we do it on the fence, it’s right there on the street. “If you miss it, you’re really not paying attention while you’re driving!” Three years ago, Engine 2 Exhaust Automotive was established as a small business run from a shed on Miles Road. Instantly growing in popularity, Gorden was able to start employing staff and took on an extra shed across the road to accommodate the influx of customers. However, it seems that he underestimated the rate that his business’s popularity would explode, as during November last year, Engine 2 Exhaust Automotive shifted premises to meet growing demands for the second time.

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Taking advantage of the rapid growth, Gorden has recently finished converting a space in the new premises into a showroom. “We can sell bits and pieces to the general public, more so the performance side of stuff, whether it be cam kits, fuel system upgrades, or any of that sort of thing,” he said. “It’s just to diversify a little bit, so we have stock on-hand, so people aren’t always waiting for parts to come from down south.” Currently, Engine 2 Exhaust Automotive offers a near-allencompassing array of services. “We pretty much do everything as far as automotive is concerned, other than paint and panel,” said Gorden.

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MEMBER STORY Engine 2 Exhaust Automotive owner Gorden Bull with wife Tammy Bull.

“Three years ago, Engine 2 Exhaust Automotive was established as a small business run from a shed on Miles Road.” “If somebody wants a set of spotlights fitted, or there’s a diagnostic issue, or an electrical issue, they’re not trapesing all around town to get stuff done. It’s sort of like a one-stop shop. “I’m qualified in light vehicle and auto electrical, and we’ve got two light vehicle apprentices and another qualified mechanic as well.” When asked what his experience shifting premises was like, Gorden simply stated that it was long, arduous and tedious. “We’ve got quite a lot of fleet servicing, so we couldn’t really say ‘well no, we’re not going to be able to do that for a month while we move,” he said.

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Gorden, with the help of his staff and some friends, shifted the contents of one shed to the new premises, while keeping the other operational. Once the new premises was well-enough equipped to be able to accommodate customers, he closed the second shed and began shifting the remaining equipment. “We were continuously running. We didn’t want to turn people away,” Gorden said. Opening three new premises in three years, Gorden has a wealth of knowledge to impart on other MTA members looking to shift location in the future. “We had to get an electrician in to rewire all the hoists; we had to paint and reseal all the floors in the workshop, along with a few other bits and pieces before we could start operating – there was quite a bit that went on behind the scenes,” he recalled. “Have a game plan. Have everything set out so you know what you’re doing. “Have a timeframe so you can prepare yourself appropriately, and then get stuck into it.”

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MOTOR TRADE NEWS

CODE OF CONDUCT COMMITTEE AGREES TO CODE REVIEW MTA Government and Engagement Manager, Kaes Cillessen joined representatives from the insurance and motor vehicle repair industry have agreed the first steps towards the review of the Motor Vehicle Insurance and Repair Industry Code of Conduct. In early May, the Motor Vehicle Insurance and Repair Industry Code of Conduct Administration Committee met for its first in person meeting of 2022. Kaes put forward to members the impact of continuing skill shortages and committee members discussed the impact of continuing skill shortages and the role of technology within the industry, as well as the importance of continued industry dialogue and education for both repairers and insurers. The Code Administration Committee remains committed to continuing its work to ensure the Code assists both repairers and insurers in achieving a balance of fairness in their dealings with each other.

MTAA CALLS ON INSURERS FOR PARTNERSHIP APPROACH Australia’s collision repair industry must be treated as a partner rather than a pariah by insurance companies ignoring mounting skills shortages, high labour, and crippling supplier costs. The Motor Trades Association of Australia (MTAA) says increasing costs because of supply chain delays and increases caused by the pandemic are compounding already unsustainable cost containment business practices by insurance companies. MTAA CEO Richard Dudley says otherwise 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 containment strategies by denying to adequately pay for some legitimate costs incurred and refusing to consider meaningful adjustments for rising labour, parts and materials and business operation costs,’ he said. ‘Collision repairers have exhausted productivity improvements, and cost absorption strategies across all expense areas of their business and enough is enough.

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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 added. Mr Dudley said the MTAA, on behalf of State and Territory Associations and the Australian Motor Body Repairers Association has written to the Insurance Council of Australia seeking an urgent summit to discuss resolving the issue before further businesses close good. ‘Collision repair small businesses are already dealing with historic skills shortages and ballooning labour, parts and materials costs, and adapting to changing technology and materials in new cars,’ he said. ‘The containers that bring parts, panels, components, wheels, accessories to our shores have increased by 453% since before Covid.” He added that these costs are being passed directly to small businesses without any ability to have these cost increases reflected in compensation.

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C O N S U M E R A F FA I R S

USED VEHICLE SALES

THE OUTDATED DOCTRINE OF “BUYER BEWARE”

SANDRA OTTO, COMMISSIONER OF CONSUMER AFFAIRS (NT) In most industries you have to advertise in order to stay ahead of the game when running your own business. Catchy phrases and bold statements are usually more effective in getting people’s attention.

not. It also does not matter if any consumer has actually been misled or not. The important thing in this situation is whether the dealer’s conduct creates a real chance that anyone may be misled or deceived.

Some second-hand car dealers may advertise that they offer “the best deals on used cars in the world”. While such puffery in advertising has always been permitted to an extent under the Common Law, car dealers need to be careful that their advertising and any other conduct is not misleading under the Australian Consumer Law.

The importance of making accurate and precise representations about the car continues into the drafting stage of the sales contract once the consumer and the dealer have agreed on a particular vehicle. Any vehicle sold must be road worthy and fit for any disclosed purpose. A clause such as “sold as is” shouldn’t be used, as it is too broad and doesn’t alert the consumer to any existing flaws. To protect themselves from liability, it would be in the dealer’s best interest to list any known defects in the sales contract.

Misleading and deceptive conduct that is not clearly exaggerated puffery is prohibited under the Australian Consumer Law. Conduct, which can include omission, is considered to be misleading if it has the potential to lead a consumer into error or misconception. For example, where a repairable write-off has been fully repaired and is roadworthy, it would be misleading for the dealer to advertise the vehicle as being “flawless” or “absolutely nothing wrong with it”. At the same time, if a consumer was interested in a particular vehicle because it has a tow bar, and the consumer mentions to the dealer that they need to tow a trailer that weighs 3,000 kilograms, the dealer is misleading the consumer by omission if they remain silent despite their better knowledge that the vehicle and tow bar have a lesser towing capacity. It is important to bear in mind that it does not matter whether the car dealer had any intention to mislead or

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Apart from the buyer’s and dealer’s details, the sales contract must also spell out the essential particulars for the vehicle to be sold. Among other parameters, these include the make and model, colour, odometer reading, VIN, engine number, date of manufacture, compliance date, sale price etc. Cooling-off periods vary between Australian jurisdictions. Vehicle purchases in South Australia are subject to a cooling-off period of two business days. In the Northern Territory, once the contract has been signed by both parties, the deal is done. NT Consumer Affairs 1800 019 319 | consumer@nt.gov.au 

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FEDERAL ELECTION

KEY ISSUES FOR NEW FEDERAL GOVERNMENT TO ADDRESS The MTA has congratulated the new Prime Minister, Anthony Albanese, on winning the election. “We look forward to working very closely with the government on the priorities and issues that are facing the automotive industry,” said Industry and Government Engagement Manager, Kaes Cillessen. “There are many issues of concern but three in particular are critical at this point in time for South Australia, the Northern Territory and Australia-wide.”

SKILL SHORTAGES The severe skills shortage has been covered by this magazine on a regular basis. See the latest story on page 18 .

CHANGING TECHNOLOGY The Federal Government’s focus needs to extend beyond increasing the number of electric vehicles on our roads, to equipping the automotive supply chain to be able to sell, service and repair these vehicles. The MTA’s role as a training organisation is very important as it is the body that must train future generations and upskill existing technicians. “We urge all MPs looking at policy to insist on real industry input in terms of the vehicles that are being sold through our network of dealerships throughout South Australia,

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Northern Territory and Australia,” said Kaes. Questions that need to be addressed include: •

How are EVs going to be serviced when they come out of warranty and enter the independent repair market?

•

What do service stations look like moving forward?

•

What are the risks and hazards that towing operators are facing?

The MTA is also urging governments to “remain agnostic” and look beyond EVs and include, for example, hybrids and hydrogen, in future planning for low emission vehicles. “The MTA is very attuned to what the industry needs, what the skills are that are needed today, but also where they're going tomorrow, whether it be training in hybrid and battery electric vehicles in South Australia, in Northern Territory or elsewhere,” said Kaes.

INFLATION Cost pressures are increasing in many areas and with the election of a new government, wage increases will be watched closely by the MTA in terms of the impact on employers and their ability to employ more staff. During the election, Labor stated that they want to see the minimum wage up by 5.1% in line with inflation.

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