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July 2015
AASP-MN’s Hard Fought Legislative Battle Goes Down to the Wire
PLUS: 21st Annual Golf Outing Highlights New Member Benefit 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: aasp@aaspmn.org • website: aaspmn.org. All rights reserved. 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. Cover image © www.istockphoto.com.
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.
AASP-MN BOARD MEMBERS 2015 - 2016
Vol. 23 No. 7
ASSOCIATE DIVISION DIRECTOR’S MESSAGE ..........................................6 Investments for Change by Kevin Martin, AASP-MN Associate Division Director LEGISLATIVE UPDATE ......................................................................7 Imbalance in Relationship with Insurers Persists by Kevin Walli, AASP-MN Lobbyist
PRESIDENT Tom Gleason
LOCAL NEWS ................................................................................8
IMMEDIATE PAST PRESIDENT Jerald Stiele
INSURANCE I.Q. ............................................................................11 Payroll: What to Include in Your Workers’ Compensation by Dennis Spindler, CBIZ
SECRETARY-TREASURER Greg Kasel, AAM COLLISION DIVISION DIRECTOR Jim Siegfried, AAM
MEMBER BENEFIT ..........................................................................12 Hiring Good Employees with Assessment Associates International
MECHANICAL DIVISION DIRECTOR Wayne Watson
NATIONAL NEWS ............................................................................17
ASSOCIATE DIVISION DIRECTOR Kevin Martin
COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.) ........21 Air Quality Permits by Janet L. Keyes, CIH, C.H.E.S.S., Inc.
COLLISION SEATS Joyce Weinhandl Will Latuff MECHANICAL SEAT Mars Overlee
CASH IN ON YOUR MEMBERSHIP!........................................................26 The Partner You Need to Do Your Image Proud UPCOMING EVENTS
STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver
August 5, 2015 St. Paul Saints Outing CHS Field, St. Paul
August 11, 2015 8th Annual Pro Paint Trade Show Orchard Banquet Center, Baldwin, WI
For more information, contact the AASP-MN office at 612-623-1110 or visit the Association’s website, www.aaspmn.org.
ADVERTISERS’ INDEX 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 (thomas@grecopublishing.com) DIRECTOR OF SALES: Alicia Figurelli (alicia@grecopublishing.com) MANAGING EDITOR: Jacquelyn Bauman (jacquelyn@grecopublishing.com) EDITOR: Joel Gausten (tgpjoel@verizon.net) ART DIRECTOR: Lea Velocci (lea@grecopublishing.com) OFFICE MANAGER: Donna Greco (donna@grecopublishing.com) www.grecopublishing.com
aaa Auto Parts ............................................................24 AmeriPride ................................................................13 Assessment Associates Internatonal ..........................13 Axalta Coating Systems..............................................OBC Buerkle Hyundai ........................................................16 CBIZ ..........................................................................IFC C.H.E.S.S., Inc. ..........................................................21 Choice Auto Rentals ..................................................16 Database Enhancement Gateway ................................6 Dentsmart ..................................................................19 Inver Grove Honda / Inver Grove Toyota ............................3 Jack McClard ............................................................3 Keystone ....................................................................4 Lowell’s PCE ..............................................................23 Maplewood Toyota ....................................................22
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Meadowbrook Insurance ............................................IFC Mills Parts Center ......................................................18 Morrie’s ....................................................................9 Motorwerks BMW ......................................................IBC Motorwerks Mini........................................................IBC MPA..................................................................................................14-15 Pam’s Auto ................................................................20 Proven Force..............................................................22 Rosedale Chevrolet ....................................................18 Roseville Chrysler ......................................................18 Straight & Square ......................................................4 Thexton Manufacturing ..............................................20 Toyota Group..............................................................25 UFG............................................................................IFC
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ASSOCIATE DIVISION DIRECTOR’S MESSAGE
Investments for Change by Kevin Martin, AASP-MN Associate Division Director
OEMs are currently on a running rate of introducing approximately 75 significant engineering changes per year, according to I-CAR’s Jason Bartanen. Several examples on the collision side are the influx of back-up cameras that will now be in every make and model this year and the influx of aluminum and other specialized materials being introduced with the intent of improving fuel consumption and safety to meet the CAFE standards. Changes this rapid put the AASP-MN membership in a perpetual state of playing catch up. In some cases, the equipment needed can be easily accessed, and at low prices; in other cases, the investment becomes significant and can run in the 6-figure range. As a shop owner, that creates an incredible number of challenges, such as: 1. How do I afford the equipment? 2. Is it necessary? 3. Will I be able to recoup the investment? a. Do I eliminate or reduce any cost within my operation, such as decreased energy consumption? b. If operating at capacity, does the equipment allow me to increase productivity, pushing additional work through and generating additional revenue? 4. What effect will it have on my business if I don’t purchase the equipment? 5. What are the ongoing costs associated with the equipment? (Sam Deering from Lowell’s PBE Equipment was sharing with me that Chief Equipment now reports that roughly 25 percent of their revenue is derived from their
data segment. Other analytic/measuring systems necessary in both the mechanical and collision side report similar statistics.)
And on it goes… While technology can be fantastic, proper preparation becomes critical. Questions to ask before purchasing:
1. What is my goal? 2. What is my budget? 3. How long will it take to achieve a breakeven point or better yet, a profitable return on the investment? 4. How will I pay for it to maximize the investment? 5. How will I handle the expense from a tax standpoint?
We recently went through the process of replacing a booth. What an educational experience! As we went through the process, we used much of this line of thinking. While we certainly are not equipment experts, what we did learn was that there are a number of tremendous resources available that are willing to serve as advisors to help us make what we felt was a strong, educated decision. The opportunity also served as a reminder of the value of our association, AASP-MN. The members we reached out to were quick to offer their advice, experiences and wisdom. If you find yourself in the market for a major purchase, I encourage you to call fellow AASP-MN members as part of your research.
ESTIMATING TIPS Refinish Underside in CCC – Apron assemblies do include refinishing the underside, as per inquiry number 7970, but floors and roofs DO NOT include refinish the underside, per inquiries 3985 and 6071.
Audatex A/C Lines – When replacing an A/C line in Audatex, the labor time allocated is for basic disconnect and connect of the line. The Audatex labor does not account for additional tasks that may be needed for the actual placement of the line through the vehicle. That would need to be a manual entry as per DEG Inquiry 4818. Wash Vehicle – Do you wash or clean a vehicle before repairs? This is a NOT included operation in CCC and needs to be added to the estimate with a labor amount. DEG inquiry 6948.
Foam – The labor for application or removal of foam is not included in CCC or Audatex and requires a manual line for the labor amount needed. Materials for the foam are not included. See inquiries 2481 and 5223.
Reset of Electrical Components – The resetting of electrical components is a NOT included operation in Audatex, CCC and Mitchell. Air bag lights, initializing of a power window, and steering angle sensors are just a few examples of items that require a manual line for the labor amount needed. See inquiries 7465, 6710, 5845.
You can view these tips and others on the DEG website at www.degweb.org.
6 July 2015
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LEGISLATIVE UPDATE
Imbalance in Relationship with Insurers Persists Despite our best efforts, we could not convince the Legislature to adopt the reforms proposed by AASP-MN in the collision claims marketplace. We did find strong allies and are encouraged by having both DFL and Republican legislators who have stood up for the repair industry. Senator Ron Latz (DFL-St. Louis Park) was our Chief Author in the Senate. He overcame challenges in the Senate Commerce Committee to move the bill to the Senate Floor. The House Companion Bill was never scheduled for hearing in the House Commerce Committee. Our Chief Author, Representative Bob Loonan (R-Shakopee) continuously pressed for a hearing, as did AASP-MN. However, Chairman Joe Hoppe (R-Chaska) wanted the parties to find a “peace in the valley compromise” before he would grant a hearing on the bill. However, the insurance industry continuously refused to come to the table. At no time did any insurance company offer any discussion – much less compromise – of any type. In the meantime, AASP-MN did offer changes to our bill that were incorporated into the Senate Omnibus Jobs and Energy Bill which included Department of Commerce budget and policy issues. The AASP-MN provision did three things: • Prohibits insurance companies from steering their insureds to particular shops for estimates. • Prohibits insurers from specifying the use of a particular electronic estimating system. • Prohibits the use of a particular software program for the procurement of parts.
On the Senate Floor, we faced a challenge when an amendment was offered to delete the AASP-MN language from the Omnibus Bill. Senator Latz and Senator John Pederson (R-St. Cloud) both spoke eloquently about the importance of supporting our main street small businesses.
The speeches by Senator Latz and Senator Pederson resulted in the retention of the AASP-MN language by a two-to-one margin in the Senate. A second amendment that would have rendered our provisions meaningless was also offered and defeated. The amendment would have allowed insurers to require a particular parts procurement software or electronic estimating system in circumstances where a repair shop “voluntarily” entered into an agreement with an insurer. The Senate also rejected this amendment. In the House-Senate Conference Committee, named to resolve differences between the House and Senate Jobs and Energy Bills, we had strong support on the Senate side to retain the AASP-MN provisions. Unfortunately, we had an equally steadfast House position opposing the provisions in the form of House Commerce Chair Joe Hoppe who had been named one of the five House Conferees. The House Co-Chair of the Conference Committee was Representative Pat Garofalo (R-Farmington), with whom we met to provide a briefing on the repair industry issues. Representative Garofalo was sympathetic to our position, but was not inclined to accept the Senate language without securing something in return. Exactly how the behind-closed-doors negotiations played out, we will never know, but our provision did not come through in the final bill that was considered at the very end of the Regular Session of the Legislature. We renewed our efforts for the Special Session. We contacted our key supporters in the Senate to see whether they could bring the AASP-MN provisions back into the Omnibus Jobs and Energy Bill. Again, all of the discussion on what was to be included in the Special Bill which was conducted behind closed doors and we had very little opportunity to influence the contents of the final bill. Suffice it to say that very few items made it into the bill that were not part of AASP-MN News
by Kevin Walli, AASP-MN Lobbyist
the package that was passed by the Legislature and vetoed by Governor Dayton, thereby resulting in the need for the Special Session measure. Our work this summer will involve thanking those legislators who have been strong supporters of our initiative. We also need to work on those who have been unwilling to help. We need to impress upon the skeptics the fact that we have made changes and need those changes to be acknowledged and acted upon. We want our day in court, so to speak. It is fundamentally unfair for one legislator to block a measure that has strong support among his colleagues. We need to reinforce the strong support that we found in 2014 and 2015 and build on that strength as we prepare for the 2016 Session. We have our work cut out for us in the coming year. The 2016 Session will be the shortest Legislative Session in recent history. The Legislature will not convene until March 8 and it must adjourn by May 16. We will face a limited Legislative Agenda in 2016, but we intend to press the issue and work for enactment of our agenda with the help and strong support of AASP-MN members all across the State of Minnesota.
Check out the new & improved AASP-MN website at www.aaspmn.org!
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LOCAL NEWS
AASP-MN’S HARD-FOUGHT LEGISLATIVE BATTLE GOES DOWN TO THE WIRE
With less than 24 hours before the constitutionally-mandated date for adjournment, AASP-MN provisions to close a steering loophole and prohibit insurer mandates for specific parts procurement software programs and electronic estimating systems were still on the table at the Minnesota State Capitol. However, after a late-night collapse in negotiations between conference committee members and with time running out, virtually all policy provisions – including those proposed by AASP-MN – were stripped from the Jobs, Economic Development and Energy Finance bill. That bill passed the House with just seconds remaining in the 2015 Legislative Session and was subsequently vetoed by the governor. (See Kevin Walli’s article on page 7 for more info.) AASP-MN extends its sincere appreciation to chief lobbyist Kevin Walli and his staff, as well as its 2015 support lobbyist, Mike Beard, for their hard work and long hours on the Association’s behalf. Also, a special thanks to the many AASP-MN members who met with, made phone calls and sent emails to their legislators requesting support for the Association’s efforts. Without these efforts, the proposal would certainly not have made as much progress as it did. The 2016 Legislative Session convenes on March 8, 2016. In the meantime, AASP-MN plans to regroup, reassess and recharge to fight yet another day for its members and the entire collision repair industry.
create the new tool, designed with the goal of improving members’ hiring and performance evaluation processes. For additional information about this new AASP-MN member benefit program, see page 12. 21ST ANNUAL AASP-MN GOLF OUTING HIGHLIGHTS
On Tuesday, June 16, 122 golfers and 28 sponsoring companies enjoyed a beautiful day golfing and socializing at the 21st Annual AASP-MN Golf Outing at Tartan Park Golf Course, Lake Elmo. Competition was fierce, with two teams logging a final score of 62 (10 under par). Based on a tiebreaker hole, the team from Hopkins Auto Body was declared the winners. Team members were: • Jerald Stiele, Hopkins Auto Body • Dave Williams, Hopkins Auto Body • Spencer Smith, Smith Import Motors • Matt Koehler, Kroll Ontrack The team from LKQ placed second, represented by team members Jim Dow and Randy Johnson from LKQ/Keystone and Laura and Jesse Jacobson from Heppner’s Auto Body.
AASP-MN ANNOUNCES NEW MEMBER BENEFIT
Recognizing the significant and important role that hiring the right people plays in members’ success, AASP-MN recently announced a new member benefit program designed to facilitate and enhance hiring decisions. The Association’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. Members who utilize the program will have job candidates complete an appropriate questionnaire for the position being filled – technician (including mechanical, body or painter) or service advisor/estimator. Candidates are assessed on motivation, attitude, dependability, initiative and other character traits. 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 then presented comparing the candidate to current, successful AASP-MN member employees. Members can use the information to identify candidates that are likely to be a good fit with their culture and work environment. The AASP-MN assessment tool will be particularly effective because it has been customized for the automotive service industry. In 2014, AASP-MN members participated in a study to develop industry-specific benchmarks for the traits and behaviors of high-performing employees. The data collected was used to 8 July 2015
1st place team, L-R: Jerald Stiele, Spencer Smith, Dave Williams, Matt Koehler.
2nd place team, L-R: Jim Dow, Jesse Jacobson, Laura Jacobson. (Not pictured: Randy Johnson.)
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A fundraiser to support the association’s Political Action Committee (PAC) was held during the event and raised $725 for the PAC fund. AASP-MN’s PAC fund provides access and resources to legislators who support the automotive service industry and advocate its positions. A special thanks to the following companies for sponsoring holes during the event: • aaa Auto Parts • ABRA Auto Body • AmeriPride Services • Auto Value & APH • Autoshop Solutions • Axalta Coating Systems • BASF • CBIZ AIA • Enterprise Rent-a-Car • Heartman Insurance • Hertz Corporation • Inver Grove Ford Lincoln • LKQ/Keystone Automotive • Lowell’s Performance Coatings • Meadowbrook Insurance • Midwest Parts Advantage • Mitchell International • National Coatings & Supplies • O’Reilly Auto Parts • Pam’s Auto, Inc. • PPG Automotive Finishes • Pro Paint Metro • R.O. Writer • Schmelz Countryside SAAB/VW • Sherwin-Williams • Suburban GM Parts • United Fire Group • Wakeman Equipment
For additional information, please contact the AASP-MN office at (612) 623-1110 or 800852-9071 or online at www.aaspmn.org. JERRY’S BODY SHOP IN MANKATO NOW ABRA FRANCHISE
ABRA Auto Body & Glass announced the opening of its newest franchise repair center in Mankato, Minnesota. The franchise is owned and operated by Jerry and Geralynn Kottschade who are well recognized in the industry and community as operators of Jerry’s Body Shop. ABRA operates 54 independently-owned franchises and 231 company-owned locations for a total of 285 in 22 states.
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LOCAL NEWS
AASP-MN’S BANKCARD PROGRAM NOW INCLUDES AMERICAN EXPRESS
Did you know that the AASP-MN Bankcard program now allows you to accept American Express cards for payment? In fact, American Express has even reduced its rates to make processing the card more affordable. The AASP-MN BankCard program strives to provide the lowest possible rates with the best possible service. For details, contact Mac Hardin at 800-999-4399 or 612-750-2988.
PRO PAINT 8TH ANNUAL TRADE SHOW
Pro Paint will hold its 8th Annual Trade Show and Celebration, August 11, at the Orchard Banquet Center, Baldwin, Wisconsin. The buying trade show will feature 100+ product lines, many offering specials and discounts to attendees. FREE FOOD, REFRESHMENTS AND DOOR PRIZES!
Sample documents: • Complaint Letter to the Department of Commerce • Loaner Car Agreement • Repair Authorization form • Assignment of Insurance Proceeds • Sheriff’s sale instructions and documents
ATTENTION R.O. WRITER USERS!
AASP-MN will host a 2-day R.O. Writer training workshop, September 30 & October 1, in the Twin Cities metro area. The workshop will be presented by R.O. Writer software expert, Paul Allen Stewart and covers: • Software usage and functionality - Understand how to easily navigate all areas of the software - Optimize estimating tool for all jobs and vendor parts lookup - Accounts payable - Accounts receivable - Inventory - Scheduling - Configuration - Marketing and reporting modules - Tricks and tips to make the system super fast - Best practices for part returns, cores and warranty • Business analysis • Marketing & follow-up • Service center processes and procedures
This highly-rated workshop is not just another training class. It is designed to provide a new level of understanding of the tools and capabilities built into your R.O. Writer software program. The workshop includes recommended setup and best practices, as well as building a business and marketing plan using your data. Owners, managers and service advisors will leave excited about using all of the tools available in the R.O. Writer software. For additional information, visit the Association’s website, www.aaspmn.org. 10 July 2015
Resources/links: • Regulation of Claims Practices & Prohibition on Insurers’ Statutes • Truth in Repairs Act • Insurer Unfair Claims Practices Report • MN Motor Vehicle Damage Disclosure & Reporting requirements • P-Pages, DEG & other estimating resources • OEM service information • MPCA Fact Sheets
CHECK OUT THE ASSOCIATION’S NEW AND IMPROVED WEBSITE
Easy navigation? Check. Mobile-friendly? Check. Contemporary look and feel? Check. Tons of info? Check! Here’s what you’ll find on AASP-MN’s newly-redesigned website… Information about: • Association news • Member benefit programs • The Get to Know Your Neighborhood Auto Repair Pro campaign • Current and past legislative activities & find your legislator • Industry training and upcoming events
Member shops, tools and equipment: Search our database to find a member shop in your area, see what diagnostic or other equipment they own, what repair information they subscribe to, which management system they use, and more! This extensive database was designed to help members connect with and be a resource to other members. Be sure to login and complete your member profile! AASP-MN News
Consumer info: • Find a shop • Auto insurance claims & claimants’ rights, “Nuts & Bolts” brochure • Consumers’ “Know Your Rights” (after submitting an automobile accident claim to your insurance company) • Motor Vehicle Service Contracts: FTC, MN Attorney General and Consumer Reports • FTC Consumer Alerts on auto warranties and warranty scams • Automotive career and scholarship info, including links to state college automotive programs
Other: • AASP-MN News – Check out the current or past issues of the Association’s monthly magazine • Lending Library – AASP-MN’s lending library consists of a number of the AMI self-study courses and other materials free for members to use • And much more! Please take the time to check out the resources available to you from AASPMN.
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INSURANCE I.Q. By Dennis Spindler, CBIZ
Payroll: What to Include in Your Workers’ Compensation We often get questions at audit time on workers’ compensation. I recently received a question about what has to be included in calculating the payroll for an owner. I did some research with the Minnesota Workers’ Compensation Insurers Association (MWCIA). Here is what they sent me from their manual of what you should include or exclude from your payroll.
A. Premium Basis Premium is calculated on the basis of the total payroll paid or payable by the insured for services of individuals who could receive workers’ compensation benefits for work-related injuries as provided by the policy. Exceptions: Premium for domestic worker classification is calculated on a per capita basis instead of payroll. Domestic workers are employees who perform household duties. (Refer to rule 3-C.) A per capita classification uses the number of workers rather than payroll to measure exposure.
B. Payroll For purposes of this article, payroll means money or substitutes for money. 1. Includes a. Wages or salaries (including retroactive wages or salaries). b. Total cash received by an employee for commissions and draws against commissions. c. Bonuses including stock bonus plans. (Refer to rule 2-D.) d. Extra pay for overtime work except as provided in Rule 2-C-2. e. Pay for holidays, vacations or periods of sickness. (Refer to rule 2-G for allocation of payroll for employees subject to more than one classification code.) f. Payment by an employer of amounts that would have been withheld from employees to meet statutory obligations for insurance or pension plans such as the Federal Social Security Act or Medicare. g. Payment to employees on any basis other than time worked, such as piecework, profit sharing or incentive plans. h. Payment or allowances for hand tools or handheld power tools used by employees in their work or operations for the insured. These tools may be supplied directly by the employee or to the employee through a third party. i. The rental value of an apartment or house, provided to an employee based on comparable accommodations. j. The value of lodging, other than an apartment or house received by an employee as part of their pay to the extent shown in the insured’s records. k. The value of store certificates, merchandise, credits or any other substitute for money received by employees as part of their pay. l. Payments for salary reduction, employee savings plans, retirement or cafeteria plans (IRC 125) that are made through employee-authorized salary reduction from the employee’s gross pay. m.Davis-Bacon wages or wages from a similar prevailing wage law. n. Annuity plans. o. Expense reimbursements to employees to the extent that an employer’s records do not confirm that the expense was incurred as a valid business expense.
p. Payment for filming of commercials excluding subsequent residuals that are earned by the commercial’s participant(s) each time the commercial appears in print or is in broadcast. 2. Excludes a. Tips or other gratuities received by employees. b. Payments by an employer to group insurance or group pension plans for employees, other than those covered by Rule 2-B-1-f and Rule 2-B-1-m. c. Payments by an employer into third-party trusts for the Davis-Bacon Act or similar prevailing wage law, provided the pension trust is qualified under IRC Sections 401(a) and 501 (a). d. The value of special rewards for individual invention or discovery. e. Dismissal or severance payments except for time worked or vacation accrued. f. Payments for active military duty. g. Employee discounts on goods purchased from the employee’s employer. h. Expense reimbursements to employees to the extent that an employer’s records confirm that the expense was incurred as a valid business expense. Reimbursed expenses and flat expense allowances (except for hand or handheld power tools) paid to employees may be excluded from the audit only if all three if the following conditions are met: 1. The expenses are incurred for the business of the employer 2. The amount of each employee’s expense payments or allowances are shown separately in the records of the employer 3. The amount of each employee’s expense reimbursement is a fair estimate of the actual expenses incurred by the employee in the conduct of his/her work i. Supper money for late work. j. Work uniform allowances. k. Sick pay paid to an employee by a third party such as an insured’s group insurance carrier that is paying disability income benefits to a disabled employee. l. Employer provided perks such as: • Use of company-provided automobiles • Airplane flights • Incentive vacations (e.g., contest winners) • Discounts on property or services • Club memberships • Tickets to entertainment events m. Employer contributions to employee benefit plans such as: • Employee savings plans • Retirement plans • Cafeteria plans (IRC 125) These include contributions made by the employer, at the employer’s expense, which are determined by the amount contributed by the employee.
If you would like more information on this or any other topic, please contact Dennis Spindler at 763-549-2238, or email dspindler@cbiz.com.
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MEMBER BENEFIT
Hiring Good Employees with Assessment Associates International One of the most pervasive issues in the automotive repair field is “How do I hire reliable, qualified technicians?” Your employees should not only have the technical skills that your shop needs, they should be dedicated to the shop, motivated and possess the people skills that are required for satisfied customers who keep coming back. Luckily for AASP-MN members, the Association is always looking for ways to improve your business and address your needs. It is because of this that they have partnered with Assessment Associates International, a talent management company, to create AASP-MN’s Auto Employees Assessment System. Job candidates complete a questionnaire depending on their determined field, either service advisor and estimator or technician, including mechanical, body or paint. You know best whether a potential hire is prepared technically for your shop, but what about their “soft skills”? The assesssment system looks at work styles such as their attitude, dependability, motivation and initiative, among other traits. The assessments are conducted over the Internet and results are provided to the employer almost immediately after the survey’s conclusion. The results are presented by comparing the candidate to current, successful AASP-MN member shop employees, allowing you to choose the best fit for your shop. Over 150 employees have already been surveyed in order to create a baseline for comparing job candidates to current high performers. The benefits of this application are obvious. They allow for quality hires and a better retention rate and improve the overall environment of your shop by providing valuable and effective additions to your shop’s team. “I think there are two things at work here,” says Assessment Associates International Vice President Joe Kalkman. “One, as any shop knows, hiring is a really big deal, but it’s often hard to find the time to do it properly, especially if you don’t do a lot of hiring. For many smaller shops, they only hire one to four people a year. They don’t have the processes in place because it’s not a common thing. By using this system, shops are bringing expertise
into the hiring decision. Using the assessment helps to bring in the right quality for your business. Of course, a shop could create an assessment like this on their own, but the investment to do so wouldn’t be worth it. “The second thing is our working collective with AASPMN,” he continues. “Through this cooperation we were able to fund the research necessary for the assessment to be valuable to a range of shops. This relationship has allowed us to validate the results; without AASP-MN the research probably would not have been done and we wouldn’t have been able to provide a customized assessment for this industry.” The program has already received an abundance of positive feedback from satisfied individuals. One shop owner who has seen excellent results from this system is AASP-MN Mechanical Division Director Wayne Watson, owner of AutoWorks Service Center in Woodbury, MN. “We have used Assessments Associates International (AAI) for the past decade. It is amazing how accurate the AAI assessments are in predicting the work behaviors of employees. With the results of the work behavior assessments, we not only make a better hire, we also make better decisions moving employees forward in our organization. As Jim Collins said in his book Good to Great, ‘The single biggest constraint on the success of any organization is the ability to get and hold on to the right people.’” AASP-MN members, as a benefit of your membership, receive 50 percent off retail price, meaning assessments start as low as $15 per assessment, making this system not only effective, but affordable as well. This is just one example of how AASP-MN is pioneering collaboration efforts across the industry, leading the pack in endeavors to address the needs of the field. For more information on the assessment program, visit www.auto.aai-live.com or call 952-854-6551.
“It is amazing how accurate the AAI assessments are in predicting the work behaviors of employees.”
12 July 2015
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LET US TURN THEM AROUND!
Contact AASP-MN News Sales Director Alicia Figurelli
973.667.6922 / ALICIA@GRECOPUBLISHING.COM AASP-MN News
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NATIONAL NEWS FTC MAKES INDUSTRY-REQUESTED CHANGES TO MAGNUSON-MOSS
The Federal Trade Commission (FTC) recently announced the interpretations of the 1975 Magnuson-Moss Warranty Act, nearly four years after requesting comments for a periodic review. The Auto Care Association, as part of the Uniform Standards in Automotive Products Coalition (USAP Coalition), submitted comments in October 2011. All current FTC rules are subject to periodic review. The USAP Coalition was formed to address the practice of manufacturers and their agents directly or indirectly conditioning a product’s warranty coverage on the use of branded (original equipment) parts or services. The Magnuson-Moss Warranty Act prohibits “tying practices,” but the coalition argued that the FTC’s interpretation does not expressly take into account all practices in the modern marketplace that produce a tying effect. In the announcement, the FTC cited language from the USAP Coalition October 2011 submission, stating that, “These commenters state that automotive and other consumer product manufacturers have employed language in consumer materials ‘to suggest that warranty coverage directly or impliedly “requires” the use of a branded product or service,’ leading reasonable consumers to believe that coverage under a written warranty will be void if non-original parts or non-dealer services are utilized.” The tying prohibition of the MMWA, part 700.10(c), was amended (shown bolded and italicized) by the FTC as follows:
No warrantor may condition the continued validity of a warranty on the use of only authorized repair service and/or authorized replacement parts for non-warranty service and maintenance (other than an article or service provided without charge under the warranty or unless the warrantor has obtained a waiver pursuant to section 102(c) of the Act, 15 U.S.C. 2302(c)). For example, provisions such as, “This warranty is void if service is performed by anyone other than an authorized ‘ABC’ dealer and all replacement parts must be genuine ‘ABC’ parts,” and the like, are prohibited where the service or parts are not covered by the warranty… such provisions are deceptive …because a warrantor cannot, as a matter of law, avoid liability under a written warranty where a defect is unrelated to the use by a consumer of “unauthorized” articles or service. In addition, warranty language that implies to a consumer acting reasonably in the circumstances that
warranty coverage requires the consumer’s purchase of an article or service identified by brand, trade or corporate name is similarly deceptive. For example, a provision in the warranty such as, “use only an authorized ‘ABC’ dealer” or “use only ‘ABC’ replacement parts,” is prohibited where the service or parts are not provided free of charge pursuant to the warranty.
Numerous comments filed during the review period suggested other changes to the tying prohibition, but the FTC declined to incorporate them. CELEBRATES 20 YEARS
Twenty years ago, the first emails were exchanged among a small group of automotive technicians through iATN. Today, more than 83,000 automotive service professionals from 170 countries routinely use iATN’s various forums and rich content databases to expand their knowledge and skill set spanning all topics related to the industry. Since 1995, iATN has evolved from an email-based communication service into the world’s largest online community of automotive technicians, repair shop owners and other allied service professionals. Members now have access to many iATN features including TechHelp – where technicians help each other with real-world automotive repair problems 24 hours a day – plus many technical and managerial web forums. An extensive, searchable iATN Knowledge Base houses the Fix Database with hundreds of thousands of real-world vehicle fixes, as well as the web forum archives with over two million discussions, and the Waveform Library with nearly 70,000 waveforms, scan-data images, component photos, documents and video demonstrations, all uploaded by iATN members. “It’s hard to believe that 20 years ago, when iATN started, we didn’t even have a website, and all communication was done via email,” said Brent Black, iATN founder. “Now nearly all communication on iATN is done via the web, and we expect in the near future that most of it will be done via mobile apps.” “Today, we’ve witnessed the incredibly positive results of the communication that takes place on iATN, including the fellowship of like-minded professionals who are focused on knowledge expansion and positive professional development within an industry that is constantly evolving,” said Scott Brown, iATN president. Brown sees an ever-increasing role for iATN in the near future as vehicles continue to grow in complexity and vehicle continued on pg. 19
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NEW EDUCATIONAL CAMPAIGN UNCOVERS “ALL THE FACTS” ON AUTOMATIC TRANSMISSION FLUIDS
another and that a licensed ATF and an unlicensed ATF will perform equally. That’s just not true. An educational effort like this gives installers the information they need to match licensed products with the correct makes and models of vehicles. That helps them build trust between them and the consumer and is ultimately good for their business.”
Automotive industry leaders are supporting a comprehensive educational program designed to clear up the sometimes confusing world of automatic transmission fluids. The effort called “All The Facts on Automatic Transmission Fluids” or ATFonATF, is an informative “safe harbor” for ATF installers, distributors and garage owners and managers who want to ensure they are using the correct fluids for all vehicle makes and models. The centerpiece of the program is a website, ATFonATF.com, which is populated with the latest and most accurate information on automatic transmission fluids. ATFonATF.com is the effort’s cornerstone where installers in particular can find the best information to make the best ATF choices for their customers. By visiting the site they can stay up to date on the latest trends, get online links to reliable resources, and gain access to articles, educational videos and photos, current third-party research and industry trends. “This is a trust issue for installers and their customers,” said Ron Romano, Service Lubricants Technical Expert at Ford Motor Company. “There’s a misconception that one fluid is as good as
AASP-MN News
WHAT’S WRONG WITH THIS PICTURE?
Answer: The picture is of an uncovered sprinkler head in a spray booth, covered with overspray.
technology exponentially increases. “iATN will become even more important for those seeking to gain a deeper understanding of today’s challenges and remain competent in the automotive service industry,” said Brown. For additional information, visit iatn.net.
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COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.) By Janet L. Keyes, CIH, C.H.E.S.S., Inc.
Air Quality Permits Do you routinely spray paints? Do you use more than 200 gallons of paints and thinners a year? If so, you probably need to have an air quality permit. That’s required for anyone who uses more than 200 gallons of volatile organic compounds (VOC) a year. VOCs are chemicals such as toluene or xylene, the solvents commonly used in paints, clears, gun cleaners and thinners. Your paint supplier should be able to run a VOC report for you, to tell you if you’re above that 200 gallons of VOC threshold. (Note: That’s 200 gallons or 200 pounds of VOCs. If your paints are water-based, you might be able to use a lot more than 200 gallons of paint before you reach 200 gallons of VOCs.) So let’s say you’re above the threshold. You realize that you need an air quality permit. Maybe your shop has been operating without a permit for years because you never realized it was needed. You’ve just stepped on a hornet’s nest. The Minnesota Pollution Control Agency (MPCA) issues different types of air quality permits, ranging from Option B registration permits, which most body shops hold, to Part 70 major source permits. For B registration permits, you pay a couple hundred bucks and submit a report each year that tells the MPCA how much paint and related product you purchased in the previous year. That’s not so bad. For major source permits, you pay tens of thousands of dollars, keep lots of records, and do lots of reporting. That’s pretty bad. If you’re just starting out in business or building a new shop, you probably qualify for the B registration permit. If you’re in that situation, apply for it as soon as you know you’ll be starting up (before construction of your booth). Don’t wait until
your booth has been installed. If your booth is already there, you have a problem. Because of the way that federal air quality regulations have been written and interpreted, existing shops need to calculate their potential to emit – how much pollution would they generate if they operated as many spray guns as possible (based on the number of airlines installed in your booth) every day of the week, around the clock. Not realistic, you say? That’s the way the law is written, probably with the intent of keeping people from falsely claiming that they only spray for an hour or two. The problem with that: if you have one gun that could spray two gallons per hour, your potential to emit will be enough to put you in
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the major source category. So your choices become: apply for a major source permit at a cost of tens of thousands of dollars, close down your shop and open a new one, so you can get the Option B permit or operate illegally without a permit. There’s now a fourth choice, the Part 70 Low-Emitting Facility General Permit. It’s a lot better, cheaper and easier than the major source permit, but it still isn’t cheap and easy. The Part 70 Low-Emitting Facility
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COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.) General Permit was developed by the MPCA to cover those facilities that are not major polluters, but that didn’t get a permit when they should have done so. Its big advantages: it is much less expensive than an individual major source permit and, if you apply for it before April 30, 2016, you won’t be subject to legal action because you were operating without the required permit. If the MPCA finds that you’re operating without a required permit, penalties can be steep. This March, a sporting goods company paid $78,000 for not having a permit for its spray booths. A company in Winona paid nearly $100,000 in 2012, for lack of permits for its booths. If you have not had an air quality permit and now want to take advantage of the MPCA’s amnesty program, we recommend figuring out whether you qualify before you apply. If you’re not using waterborne paints, from the calculations we’ve done, it looks like you may not qualify for this permit (you’ll need the major source permit), or you will need to change or eliminate some of your paints. Do any of your paints contain lead? If so, you probably don’t qualify. This would be a good time to change your practices – get rid of the lead-containing paint and switch to waterborne. The permit application itself has almost twenty forms. If you like filling out tax forms, you might like this permit application. This is not something you want to try completing on your own. The MPCA’s Small Business Environmental Assistance Program should be able to help. There are also consultants who can help you. Make sure they have experience with the MPCA’s air quality permitting process and have heard of this new permit. The quick summary:
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you make changes, to ensure it will allow you to qualify for this permit. • And if you’re in Minneapolis, the city had been offering grants to switch to water-based paints. Check with the city or with MnTAP to see if that program will open up again.
Operating without a permit puts you at risk for heavy penalties. We all breathe the air. Permits are needed to help protect the air quality in Minnesota. Permits have been shown to be effective controls on how much bad stuff all of us breathe. If you have questions about air quality permits, spray painting, chemical exposures, safety and environmental inspections, OSHA grants, or other safety or environmental issues, contact CHESS at 651-481-9787; toll free at 877-482-4377, or carkey@chess-safety.com. CHESS specializes in helping small to medium sized business with occupational health and safety issues. We have been providing services to the automotive industry for more than 20 years.
• If you have an air quality permit already, appreciate it. This new permit isn’t for you. • If you are just planning to start operations – you haven’t constructed a shop or installed a paint booth – apply for a permit now, as soon as your plans have firmed up and preferably before any construction has begun. If you do so, you should be able to get the simple and inexpensive registration permit. • If you’ve been operating without a permit and you spray waterborne paints, this new permit is your best hope for coming into compliance. But check with the MPCA Small Business Environmental Assistance Program (SBEAP) or a knowledgeable consultant before you apply. • If you’ve been operating without a permit and still spray solvent-borne automotive paints, you will need to evaluate your specific paints or consider changing to waterborne. But it would be wise to check with the MPCA SBEAP or a knowledgeable consultant before AASP-MN News
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LOCAL NEWS
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THANK YOU TO OUR 2015 SPONSORS
Recently, AASP-MN asked for sponsorship support from its Associate members and other industry vendors to help support the Association’s educational programming and other activities in 2015. Sponsorships help AASP-MN deliver the quality programs members expect and keep registration fees affordable. To date, the following companies have made sponsorship commitments:
Gold Sponsors Autoshop Solutions Auto Value Parts Stores & APH Axalta Coating Systems PPG Automotive Finishes
Silver Sponsors aaa Auto Parts CBIZ AIA Inver Grove Ford LKQ/Keystone Lowell’s Performance Coatings Meadowbrook Insurance Midwest Parts Advantage Mitchell International O’Reilly Auto Parts PAM’s Auto, Inc. Suburban Chevrolet United Fire Group
Program Sponsors 3M AASP National CARQUEST CBIZ AIA CBIZ Payroll Dent Impressions IDENTIFIX Robert Bosch, LLC
Hospitality Sponsors AmeriPride Services BASF Automotive Refinish CCC Information Services Choice Auto Rental Dentsmart PDR Enterprise Rent-a-Car Net Driven Norton Abrasives Pro Paint Metro Sherwin-Williams 24 July 2015
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CASH IN ON YOUR MEMBERSHIP!
The Partner You Need to Do Your Image Proud In your industry, trust rules. You work hard to earn it from customers every day. When your business features branded work wear and floor mats, clean restrooms and bays, customers trust that you’re doing things right. This helps you stand out from the shops down the street and keeps customers coming back. AmeriPride Services offers a towel, rug and uniform rental program to AASP-MN members that features discounted prices, annual rebates, free installation, free emblems, no deposits and no set-up charges. With a uniform and facility care product program from AmeriPride, you’ll save: • Time – We’ll manage the details so you don’t have to. A Customer Portal with online billing and payment adds convenience and ease. • Space – Stocking the exact quantities your business needs. • Money – Weekly inventory monitoring means you’ll only spend on what you need.
Diamond Plate Shop Shirt & Performance Shop Pants and Shorts, Manufactured by Red Kap – Available through AmeriPride The Diamond Plate Shop Shirt is one of the newest additions to the AmeriPride family of Shop Gear products built specifically for car guys. Garage-tested for durability and comfort and inspired by car culture, it’s loaded with features designed to make doing your job easier and help you look good while doing it. It’s a shirt that’ll work as hard as you do – day after day, car after car. AmeriPride’s performance shop pants and shorts are unique in the industry. They come standard with features to make your job a little easier—like a cargo pocket on the left leg and double-pockets on the right leg for easy access to phone, keys and tools and a concealed waistband button to prevent accidental scratching of paint jobs. For more information, visit www.ameripride.com or call: Minneapolis 612-331-1600 Bemidji 218-751-5150 Mankato 507-345-1039
Local support keeps your program running smoothly. We know that service is more than just doing the job. Excellent service is the result of going above and beyond. That’s why you’ll see the same familiar face at every delivery. We know service is more than a 1-800 number. Service is showing up—every day, no matter what.
Hibbing 218-263-3611 St. Cloud 320-251-2525 Fargo 701-232-7484
AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE Meadowbrook Insurance Group Contact: Dennis Spindler 763-549-2238 / dspindler@cbizaia.com 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: Dennis Spindler 763-549-2238 / dspindler@cbizaia.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. EMPLOYEE BENEFITS CBIZ AIA Contact: Dennis Begley 763-549-2260 / dbegley@cbizaia.com CBIZ AIA will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance. UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: Jim Dillon 651-955-1398 / jim.dillon@ameripride.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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CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available. 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 Net Driven Contact: Jon Napoli 877-860-2005, ext. 400 / jnapoli@getnetdriven.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. For more information, contact Jon Napoli. Stormlogix Contact: Paul Switzer 732-364-1156 / paul.switzer@stormlogix.com Stormlogix extends a discount on its website packages to AASP members. Costs can be spread out over 6 months. AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aai-assessment.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.
TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline. One free call is extended to all first-time AASP-MN member callers. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discount rate on printed business forms and calendars. SHOP SERVICES Summit eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / fterlep@summitsoftwaresolutions.com AASP members receive a 5% discount on all Summit eMarketing Sherpas’ services, including: website design and development, search engine optimization, email marketing and communication, online review and reputation management and social media marketing. INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 AASP members are eligible for special Mitchell 1 information and management programs at significant discounts. For more information, log onto www.mitchell1.com or contact the Mitchell 1 representative at 888-724-6742, X6986. 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.
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PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com 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. CHECK GUARANTEE SERVICES Certegy Check Services Contact: Heather Ellis 952-240-5017 / heather.ellis@fisglobal.com Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments. BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com 180BIZ offers BUSINESS COACHING to AASP members at a steep 20% discount! One Eighty Business Solutions LLC (180BIZ) has been helping shop owners increase profits and car count while decreasing stress since 2003. AASP members receive a discount on very affordable oneon-one coaching plans without long-term commitments and complicated contracts. 180BIZ offiers a risk-free trial of their services. To learn more, please call or email us, or visit our website. REPLACEMENT PARTS Dorman Products Phone: 800-868-5777, ext. 5329 AASP members receive insider information, special access and other perks from Dorman Products, a leading supplier of dealer “exclusive” automotive replacement parts. 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.
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