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CONTENTS Vol. 30 No. 11
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. 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. ©2021 All rights reserved. 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 2021 - 2022
ASSOCIATE DIVISION DIRECTOR’S MESSAGE.................................4 The Impact of Allocations, Shortages and Supply Chain Issues by Loren Feldkamp, AASP-MN Associate Division Director LEGISLATIVE UPDATE.....................................................................5 Salvage Title Task Force Holds Second Meeting by Kevin Walli & Sam Richie, AASP-MN Lobbyists
PRESIDENT Tom Archambault
LOCAL NEWS..................................................................................6
IMMEDIATE PAST PRESIDENT Matt Feehan
NATIONAL NEWS ............................................................................8
SECRETARY-TREASURER Jesse Jacobson
D.E.G. ESTIMATING TIPS .................................................................10
COLLISION DIVISION DIRECTOR Lee Schlosser MECHANICAL DIVISION DIRECTOR Jeremy Nordgren ASSOCIATE DIVISION DIRECTOR Loren Feldkamp COLLISION SEAT Travis Doyle MECHANICAL SEATS Mike McLynn Tony Newman
STAFF
EXECUTIVE DIRECTOR Judell Anderson, CAE OFFICE ADMINISTRATOR Jodi Pillsbury 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 SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com MANAGING EDITOR Chasidy Rae Sisk | chasidy@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com PRODUCTION COORDINATOR Joe Greco | joe@grecopublishing.com www.grecopublishing.com
COVER STORY ................................................................................14 A Quarter-Century Career: Lessons Learned as Your Lobbyist by Kevin Walli, AASP-MN Lobbyist INSURANCE I.Q. ..............................................................................16 CBIZ Inc. - Your Workers’ Compensation Partner COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S).......................................................................................18 Don’t Trust to Luck by Janet L. Keyes, CIH and Carol A. Keyes, CSP CASH IN ON YOUR MEMBER BENEFITS! .........................................21 AASP National Benefits UPCOMING EVENTS November 9th 4:00 – 6:00pm Mech XChange: Accessing Technical Repair Information Automotorplex, Medina
November 17th 4:00 – 6:00pm BS Session: Collision Shop of the Future Crystal Lake Automotive, Lakeville
April 7, 2022 Annual Meeting & Leadership Conference Crowne Plaza, Minneapolis West Plymouth
ADVERTISERS’ INDEX AAA Parts....................................................... 8 A-Con Recycling........................................... 22 Aramark.......................................................... 17 C.H.E.S.S.......................................................... 19 Dentsmart....................................................... 16 Inver Grove Honda/Inver Grove Toyota.... 10 Jack McClard................................................. 20 Keystone......................................................... 20 Maplewood Toyota...................................... 17 Mopar Group ................................................ 11
AASP-MN News
Morrie’s .......................................................... 11 MPA.................................................................. IBC Proven Force........................................................ OBC Reliable Automotive Equipment..............12-13 Rosedale Chevrolet...................................... 4 Spanesi............................................................ 9 Straight & Square.........................................5, 19 Toyota Group................................................ 22 Valspar Refinish............................................ IFC
November 2021 | 3
ASSOCIATE DIVISION DIRECTOR'S MESSAGE
The Impact of Allocations, Shortages and Supply Chain Issues By Loren Feldkamp AASP-MN Associate Division Director
Daily life in the automotive industry is proving to be difficult due to product shortages and supply chain issues. What once was taken for granted is now becoming difficult to achieve. We all see empty dealership vehicle lots brought on by the worldwide chip shortage. Independent automotive businesses that used to find common brake parts after one phone call now place multiple calls before finding what they need. The supply chain bottlenecks related to many full barges sitting in the ocean unable to be unloaded is impacting our industry and many others. The hope that ships might be unloaded faster is not coming true due to a shortage of truck drivers and workers in rail transportation. New car dealerships are experiencing numerous backorders on parts just like the independent automotive distributors are seeing. The lubricant and related product industry is also challenged in the current marketplace. Raw materials and chemical additive packages have been placed on allocation, which limits how much of each product distributors can purchase. Volumes have returned to normal levels and above, which has caused shortages
of products. Diesel exhaust fluid is increasing in price because the basic chemical ingredient, urea, is in short supply. Brake cleaners are rising in cost dramatically due to heptane and hexane producing factories being shut down by recent hurricanes. Many lubricant viscosities are in short supply due to base stock and additive shortages. Products not experiencing shortages are still being impacted due to transportation challenges, again leading to periodic shortages in the marketplace. Some lines of parts are not in shortage situations, but their packaging is in a shortage situation, adding to the complications. Last year’s freeze event, ongoing labor shortages, the pandemic effects and more recent events (such as hurricanes) are all being blamed. continued on pg. 22
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AASP-MN News
LEGISLATIVE UPDATE
Salvage Title Task Force Holds Second Meeting by Kevin Walli & Sam Richie, AASP-MN Lobbyists
During the past three years, the legislature has been asked to amend Minnesota’s Salvage Title Statute based on consumer protection arguments. Legislators have not been able to reach consensus on exactly how to change the statute, and so a task force made up of four legislators — two senators and two representatives — has been appointed to look more closely at the statute and recommend changes for the legislature to enact in 2022. On October 6, the task force held its second meeting where it received a detailed overview of the title branding purpose and process from the Division of Driver & Vehicle Services (DVS) staff and the State Patrol. DVS staff explained that title branding differs from state to state. In Minnesota, there are eight brands that a vehicle might carry: salvage, prior salvage, flood, Lemon Law, reconstructed, rebuilt, assembled, distinctive or hazardous/ contaminated. It was noted that Minnesota, unlike other states, does not have a “junk” title, although a “junk certificate” can be issued on vehicles determined to be a “total loss” by an insurance company. Department staff provided some insight into how a salvage brand might be cleared.
The department also indicated that inspections relating to salvage title vehicles are specifically not safety inspections and instead function merely as a review of vehicle parts to ensure that stolen parts are not used in repaired vehicles. The target of this review activity is “chop shops” who trade in stolen parts. During the exchange between department officials and the task force members, it appeared there may be some consensus around the notion of trying to provide greater disclosure or transparency for consumers regarding the status of their vehicles. The task force will be meeting at least two more times before the 2022 Legislature convenes. One of the duties assigned to the task force is to come up with recommendations to amend the Salvage Title Statute. In the alternative, the task force might chart a course for further examination of the statute in order to ensure that any change is meaningful and that markets are not unnecessarily disrupted. We will continue to provide reports as the task force conducts its meetings and works with its members to ensure an outcome beneficial for AASP-MN members.
AASP-MN News
November 2021 | 5
LOCAL NEWS 19th Annual Race for Automotive Education Raises Over $13,400
Wednesday, September 29 (Student Night)
AASP-MN held its 19th Annual Race for Automotive Education, September 28, 29 and 30 at ProKart Indoor Racing in Burnsville. The event raised over $13,400 to support the Alliance’s Automotive Education Fund and will fund scholarships for automotive students enrolled in ASE Accredited auto service and collision repair programs in Minnesota’s technical colleges. During the three-nights, 150 racers took to the track in go-karts reaching speeds of up to 40 miles per hour. Twenty teams of auto service and collision repair shops and industry suppliers were joined by 10 teams of automotive students from Dakota County Technical College, Dunwoody College of Technology, Hennepin Technical College (north and south campuses), St. Cloud Community & Technical College and South Central College. The student teams were sponsored by 1 Collision Network. Many spectator fans were also on hand to cheer on their team. Trophies were awarded to the first place and runner-up teams each night. They were:
First Place – Hennepin Technical College, Eden Prairie
Runner-Up – Hennepin Technical College, Brooklyn Park
Thursday, September 30
Tuesday, September 28 First Place – LaMettry’s Collision, Minnetonka
Runner-Up – Heppner’s Auto Body, Team #1, Twin Cities
In addition to the 30 race teams, the event was supported by the following sponsors: • 1 Collision Network • Auto Value Parts Stores/APH • Axalta Coating Systems • FinishMaster • LKQ – Minnesota • Lube Tech & Partners • Podium • PPG Automotive Finishes
First Place – Wenzel Auto Electric, Mankato
Runner-Up – Further Performance, Minneapolis
Minnesota Careers in Auto Repair & Service (MNCARS)
Members of 1 Collision Network in attendance
MNCARS is a non-profit organization established in 2016 by AASP-MN. Its sole purpose is to promote careers in the automotive industry, recruit young people into the state's college-level automotive service and collision repair programs and, ultimately, into industry workplaces. To further those efforts, MNCARS recently participated in the following events: • Wright Technical Center Career Fair, Buffalo. Thank you to Lee Schlosser, Jeremy Nordgren and Tom Gleason for their participation.
Take advantage of the resources in the MotorMouth toolbox at https://carcareers.org/motor-mouth/. Get out and get active in your local community promoting industry careers!
6 | November 2021
The Automotive Education Fund was established in 2002 to provide financial resources to support automotive students, enhance automotive programs and raise awareness of career opportunities in the automotive service industry. Since its inception, nearly $290,000 has been invested in student scholarships, Skills USA and automotive education programs throughout the state.
AASP-MN News
MNCARS Announces Fundraising Drive Minnesota Careers in Automotive Repair and Service (MNCARS) was established by AASP-MN in 2015 to help close the workforce gap in Minnesota’s automotive service and collision repair industry. Since then, the MNCARS initiative has helped raise awareness of car careers among future students, high school teachers, counselors and parents. We’ve encouraged enrollment across the state’s 32 technical college automotive education programs. From 2016-2020, our efforts have contributed to more than 3,250 incoming student enrollments in these collision and auto service programs. Over the past several years, MNCARS has introduced new initiatives and campaigns designed to drive awareness and achieved some amazing results with the industry’s support: • Continually growing our website traffic (over 2,500 unique visitors each month!) and driving new audiences to carcareers.org, with new visitors in 2021 already 55 percent higher than this time in 2020. • Consistently ranking on the first page of Google results for searches related to car careers in Minnesota, ensuring we’re top of mind for someone looking for auto career options • Increasing our engagement and reach by at least 60 percent on Facebook and Instagram in 2021. • Generating more than 9,400 clicks to the website through YouTube, Facebook and Instagram video ads in 2021. • Investing nearly $5,000 in high school automotive programs through Adopt-a-School. • Creating the Motormouth toolbox to provide a variety of resources, tips and materials to help industry members get involved in their local community and start having conversations with customers, community members and students about the career potential in the automotive industry. The MNCARS Board recently announced a new fundraising drive to raise $200,000 to fund campaign costs over the next three years. To date, $50,000 in pledges have been received. Whether $50,000 or $500, every contribution will help build a high-quality workforce for Minnesota’s automotive service industry, now and into the future. Support pledges can be made in a single, lump-sum payment or paid annually over the next three years. Please visit aaspmn.org to access a pledge form and return to the AASP-MN office by November 30, 2021. Thank you for your consideration! AASP-MN Member Lynn Austin Recognized as NAPA/ASE Technician of the Year The NAPA/ASE Technician of the Year award honors an outstanding individual who has risen to the top of the profession in the NAPA AutoCare system. This year, AASPMN member Lynn Austin of Austin’s Auto Repair in North Mankato joined an elite group of more than three dozen technicians who have received this award since it was first presented in 1982. Lynn earned a degree in automotive service technology at Dunwoody College of Technology in Minneapolis. He
earned his first ASE certification in 1975 and went on to become an ASE Master Certified Technician. He holds 15 ASE certifications today. When asked about the importance of certifications, he said, “Customers understand the importance of having a well-trained technician work on their car, so seeing that ASE certification gives them peace of mind.” Lynn views Lynn Austin himself as being a technician first and a businessperson second. He has always believed in doing what’s right for the customer and strives to provide exceptional service every day. His motto is, “There’s never a need to sell someone something they don’t need.” He also says, “Open communication is key. It builds trust and strengthens relationships.” In addition to training and experience, it’s the little things that make Lynn stand out as a technician. One of the things he’s known for is putting a smiley face on the coolant recover tank to remind customers how full it needs to be. Especially today, with oil changes being further apart, reminding vehicle owners where to check for coolants until their next oil change provides reassurance for the customer – and Lynn – that the car will be looked after until it is in for service again. Lynn recently turned over the shop’s business operations to his son-in-law to commit more time to helping grow the next generation of technicians. He has been volunteering his time and shares his talents in the automotive departments at South Central College and a local high school. He also participates in the Mankato Area Career Day and the Career Exploration Day at South Central College where he talks to students interested in the automotive field. Congratulations and happy retirement, Lynn! AASP-MN Values Appreciation: Each member is important. We value members’ time, commitment, and contributions – whether large or small – for the benefit of all. Collaboration: We work with one another for the betterment of the automotive industry, recognizing that our collective ideas and experiences are stronger than any one individual’s. Commitment: We believe in our mission. We stand with and support the industry and our members by providing resources to help them achieve their goals and long-term sustainability. Connection: We come together around a common purpose while welcoming and accepting different viewpoints. We value everyone for who they are and what they bring to the organization. Focus: We prioritize our work. We do not allow daily distractions and short-term challenges to take our vision away from our objectives and long-term goals. Integrity: We do the right thing for the right reason. We are respectful, honest and transparent and can be counted on to do what we say we are going to do. Professionalism: We strive for excellence in all that we do. We apply best practices, meet high standards and take pride in our work.
AASP-MN News
November 2021 | 7
NATIONAL NEWS
www.langmarketing.com
Import Channel Leads Sales Recovery Six Major Takeaways: • The Import channel involves Import Warehouses and Jobbers, which engage in both two-step and threestep distribution of products for foreign nameplates (imports and transplants). • Although the Import channel is the smallest of the four independent
(non-OE) channels that supply the light vehicle aftermarket, it has averaged the highest annual percentage growth rate over the past six years (2014 to 2020). While it suffered a sales decline during the 2020 onslaught of COVID-19, the Import channel expanded its share of light vehicle product sales last year.
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• The Import channel recorded $9.1 billion in product sales at user-price during 2019, up more than 25 percent from five years earlier. • The Import channel generated 12 percent of the $14.3 billion gain in car and light truck aftermarket sales between 2014 and 2019, 60 percent greater than its average product share during that period. • The Import channel averaged 4.6 percent annual product growth between 2014 and 2019, over 70 percent faster than the 2.7 percent average annual increase of all light vehicle products. • The expansion of two-step distribution in the Import channel is propelling its annual product growth at more than twice the pace of most other channels. See the all-new 2022 Lang Aftermarket Annual for a 10-year analysis of the sales growth of the Import channel.
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November 2021 | 9
ESTIMATING TIPS All Three Systems: How to Submit a Great DEG Inquiry New or current DEG users will want to follow some of these steps to submit a DEG Inquiry: • • • •
Detailed explanation of the estimating issue Any screen shots or PDF of the concern Photos of the vehicle repair area in question Supporting OEM information, if applicable
Help us help you! The more information you can supply up front, the faster and more accurate response we can get to your inquiry submission. CCC: Nissan Database Update Recent DEG Inquiry 18933 has hinted vehicle database will be available on 10/8/21 UM download. DEG has confirmed with CCC that additional vehicle chapters will start to be available. “Select Estimate Properties on the Estimate tab to confirm your database version. If the version is incorrect, please contact CCC Technical Support at (800) 6378511.”
Mitchell: Wheel R/I Not Included in Bumper Labor Recent DEG Inquiry 18849 states, “Per p-page for front and rear bumpers, removing and installing the wheel has not been factored into the R&I bumper labor allowance.” Additionally, “Raise and supporting the vehicle is NOT factored into the bumper labor.” All Three Systems: Retrieving Remnants of Rivet/ Debris Some components may require drilling out rivets and punching the rest of the rivet which may cause the backside to fall into a cavity or enclosed area. Any additional labor to remove components/trims to gain access to remove the debris is NOT INCLUDED in any of the three estimating systems. For additional information, visit degweb.org to see CCC Inquiry 18914, Mitchell Inquiry 18918 and Audatex Inquiry 18919.
Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair. You can view these tips and others on the DEG website, DEGWEB.ORG.
10 | November 2021
AASP-MN News
AASP-MN News
November 2021 | 11
COVER STORY
A QuarterCentury Career: After 27 years of work with the automotive repair industry – which included writing more than 200 columns for AASP-MN News magazine – I want to wrap up this chapter of my life by sharing lessons I have learned during our time together. Some lessons are about the industry: You face Kevin Walli challenges on a daily basis as you strive to keep up with changes in technology to ensure that vehicles are returned to their owners in safe condition. Other lessons are more personal. I have observed a steady stream of shop owners emerge as leaders in the industry and as spokespeople for the Alliance. Our members’ leadership skills and business acumen are also evident in the transitions of shop ownership which have occurred on a continuous basis – sometimes transitioning to a family member, other times to a long-term employee of the shop. It has been rewarding to watch as the next generation steps up to serve the industry, having gained the knowledge that this service pays back many times over as they work with and learn from their colleagues. Probably the biggest take away from all these years working with AASP-MN is the necessity of affecting quality repairs in one of the most rapidly evolving business sectors on the planet. Who would have guessed 25 years ago that a shortage of computer chips would slow the production of cars and trucks as it has in recent months? It’s incumbent on every shop to bring precision to the repair process to ensure that the vehicles you are entrusted to repair and return to the road are safe for the occupants and other people who share the road with the repaired vehicle.
14 | November 2021
This marketplace necessity has become a legal imperative as the John Eagle Collision Center case out of Texas drove home the point that repair shops are ultimately responsible for the repairs they perform. The open questions that expose repair shops to ongoing risk pertain to the standards that repair shops must maintain and how that guidance is transmitted to the repair industry. Manufacturers need to provide more specific guidance, to ensure both safe repairs and to guarantee that the repair industry receives proper payment for completing repair work in accordance with manufacturers’ repair specifications. Over the years, we have found ourselves explaining the industry to an audience of policymakers who are rather clueless about how sophisticated the repair industry has become. For example, we worked to change the point of imposition of sales tax from the wholesale purchase of paint and supplies to the retail invoice prepared by the repair shops to be paid by the customer or their insurer. Previously, shops had paid the tax and had no means to recover that payment. When we accomplished that change, repair shops saw real financial benefit. This process also produced one of the most surprising and humorous exchanges between the repair industry and state agency officials in my years working in the legislative process. As AASP-MN made its case for the sales tax change, we met with key legislators and officials at the Department of Revenue. One exchange, in particular, demonstrated just how little some (or most) people understand the auto repair business. It went something like this: AASP-MN staff: “We are requesting that the point of imposition of the sales tax on paint and supplies in the automotive repair process be moved from the repair shops’ purchase at wholesale to the final retail invoice issued by the repair shop.” Department of Revenue staff: “The supplies you
AASP-MN News
by Kevin Walli, AASP-MN Lobbyist
Lessons learned as your lobbyist refer to – would that be the paint brushes you use on the cars?” AASP-MN participants: Long silence – then, “Nooooo” – followed by a diplomatic description of the repair process. Despite this lack of awareness, repair shops have a good story to share with policymakers. You employ thousands of Minnesotans in good jobs. AASP-MN made this point clearly when it arranged a meeting and shop tour for two leading lawmakers. During the tour, two painters were working in their respective paint booths. One of the legislators asked, “How much can a painter earn in a year?” When the shop owner quoted six figures, the legislators were clearly impressed. Repair shops are the type of main street businesses that form the backbone of every community. The Alliance has also been a team player, taking an appropriately supportive role in broad coalition efforts. AASP-MN did so in the case of the Minnesota Chamber of Commerce initiative to reduce or eliminate the General Business Property Tax which flows to the State General Fund. This business property tax which is paid into State coffers was enacted 20 years ago as part of a major tax reform compromise package. As you can imagine, the business community was not thrilled with this added property tax burden, and the Chamber led efforts to reduce the tax. They focused on either reducing or removing the escalator for scheduled annual upward adjustments in the tax rate or reducing the base rate for business properties. Organizations like AASP-MN supported the Chamber’s effort and weighed in through our legislative contacts. As a result, there have been several amendments that have reduced this business property tax burden over the past decade. AASP-MN has also played it smart in establishing and maintaining good working relationships with some of the state agencies who can have the biggest
impact on our members’ businesses. The association’s relationship with the Minnesota Pollution Control Agency is a good example. For the past several years, AASP-MN has maintained a positive working relationship with the agency as it has sought to update air emissions rules. We engaged in an ongoing dialogue with the agency’s business liaison staff regarding changes to rules affecting repair shops. During this process, AASPMN provided information about what takes place in a well-run repair shop. The end result was a set of rules that maintained the status quo for many shops’ air permitting requirements and a more reasonable path to compliance for other shops. The Alliance has also maintained communications with the Department of Commerce, which has the authority to investigate and impose sanctions on insurers who violate claims practices. AASP-MN must continue to be the conduit for shops to document violations. We know it’s a challenge to assemble sufficient evidence to trigger an investigation, but it has been done, and sanctions have been imposed. Correspondingly, insurer behavior has been modified. Finally, I would be remiss if I failed to acknowledge the person who has kept the band together. Judell Anderson has been a steady hand in administering the Alliance. She has presided over a period of growth for the association with expanded member benefits and a stronger voice in the public policy arena. She has also helped bring to fruition the sharing of resources for scholarships to attract more young people to the repair industry as member shops find themselves among the many employers who are facing a workforce shortage. Twenty-five years is a long time to keep a client. I am grateful for what I have learned from all of you and even more grateful for the people I met and the friendships I’ve formed working with you over these many years.
AASP-MN News
November 2021 | 15
INSURANCE I.Q.
CBIZ INC. - YOUR WORKERS’ COMPENSATION PARTNER When is a Workers’ Compensation Claim Compensable? Carefully evaluating workers’ compensation claims is crucial in helping your company save money and prevent fraud. Workers’ compensation is simply a form of insurance that offers employees medical coverage in the event they are injured during a work-related function. Depending on the state of residence, it may also give compensation for disabilities sustained or cover rehabilitation costs so the employee can return to the workplace quickly and smoothly. Workers’ compensation is crucial to protecting employees, but it is often a source of contention among employers because it comes with considerable gray areas. When is a claim compensable? How do we identify a fraudulent claim? How do we report a claim, and should we report all workplace injuries no matter how serious? This piece is designed to help you determine when - and if - an injury is covered by workers’ compensation. Requirements The claim must meet all five of these requirements in order to be compensable: Happened to One of Your Employees The first requirement is in place to ensure it is your employee filing the claim, not an independent contractor or vendor who works for themselves or a third party. Even if the incident occurs on your property, unless it is someone
16 | November 2021
who works directly for you, the claim is not compensable. Resulted in an Injury or Illness Injury is not the only thing that can potentially be covered by workers’ compensation. Illnesses could also qualify as compensable claims, but only if they are related directly to the job. The illness also must be caused directly by the working conditions to be covered in a workers’ compensation policy. For example, a miner’s contraction of black lung would be compensable in all states. However, an employee in an office with a co-worker who smokes would not be eligible for workers’ compensation for treatment of illness due to secondhand smoke. Arose Out of Employment This requirement means there must be a direct connection between the injury and the desire or attempt to further the employer’s business. If the employer benefits in some way, whether monetarily or otherwise, from the employee’s activity, then the claim meets this qualification. Occurred in the Course and Scope of Employment The employee must be at work when the injury occurs. This includes any place or location mandated or expected by the employer. So, when an injury occurs at the employee’s physical everyday work site, that employee must prove he or she was injured while actively engaging in the
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furtherance of the employer’s business. There is a special provision called the “coming and going rule,” which maintains that benefits are denied for injuries received when traveling to or from work. Additionally, injuries arising out of transit from one work site to another, for instance when traveling to visit clients, are compensable. This provision also requires that the actions leading to the injury of the employee in question be prompted by the aspiration to further the employer’s business interests. Resulted in Impairment and/or Lost Wages The injury or illness in question must cause the employee to be impaired in some way and lose wages from not being able to complete his or her tasks completely. It is also a compensable incident if the injury or illness results in impairment but without lost wages, or vice versa. Identifying a Fraudulent Claim Studies commonly show that roughly 90 percent of all workers’ compensation claims filed are legitimate. However, it is still important as an employer to watch for these red flags that may indicate a fraudulent claim: • Filing multiple claims • Longer absences than anticipated by the employee, combined with an unwillingness to return to work • Unwillingness to be assigned to other, lighter jobs within the
• • • • • •
company or to complete partial duties Constantly missing medical appointments Employee will not provide date, time or location of the incident that caused injury Employee has no recollection of services provided for related medical bills Lack of witnesses to an accident or incident Employee cannot produce specific information about the nature of the injury Employee has a history of short-term employment
If any of these red flags occur, it by no means makes the claim automatically fraudulent. These are simply guidelines to keep employers proactively evaluating the legitimacy of a workers’ compensation claim. For more information, contact Brad Schmid at (763) 549-2247 or bschmid@cbiz.com.
AASP-MN News
November 2021 | 17
COMPLETE HEALTH , ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.)
Don't Trust to Luck by Janet L. Keyes, CIH and Carol A. Keyes, CSP
A review of OSHA’s fatality and catastrophe records for the automotive industry shows some consistent patterns. Employee is killed by falling vehicle and lift. Employee’s finger is amputated by fan belt. Bad luck, you say? That implies that it was unavoidable. We’d argue it was the absence of good luck. The employee who lost a finger to a fan belt probably wasn’t doing anything new. He/she got lucky the other times. This time, his/her luck failed. When the same hazard is present time and time again, we should figure out how to prevent it instead of hoping luck holds. In December 2019, in Houston, TX, an employee was working under a vehicle on jack stands. A customer backed their car into the raised vehicle, knocking it off the stands. The employee was crushed and killed. The falling vehicle pinned another employee against a wall, injuring his hip and leg. We are safety geeks, so I’ll point to a failure of energy control for both the fan belt amputation and the fallen car. Lifting a vehicle, whether on jacks or with a vehicle lift, subjects it to gravity. The jack or lift relies on hydraulics to circumvent gravity. The car’s motor kept the fan belt spinning around. If we only had controlled that energy, the finger would remain attached, and the technician wouldn’t have been killed. Everyone who has been trained on working with hybrid or electric cars has learned about controlling hazardous energy. They’ve learned to turn the car off, remove the key and, wearing electrical insulating gloves, disable the battery pack. Then they wait to let the capacitors discharge. You should apply that same idea of hazardous energy control to all repair operations. Changing a grinding wheel? Unplug it, so you don’t hit the start button by mistake. Need to work under a car? Hydraulics can fail, so use jack stands or a vehicle lift equipped with safety latches. Of course, you still need to make sure the car is correctly balanced on the lift. Hazardous energy control procedures aren’t fail-safe. What if you’re replacing the ballast in a light fixture? That’s the type of simple electrical repair that a lot of unqualified people do. It killed a Virginia man in June 2019 – “he was replacing a ballast in a fluorescent light fixture when he was electrocuted.” Turning off the light isn’t enough because someone else can easily flip it back
18 | November 2021
on. What should have been done: turn off the light at the breaker and then lock it out, pocketing the key to the lock so no one else can turn it on. When we think about lockout/tagout or control of hazardous energy, it’s electricity that most often comes to mind. But the moving fan belt has kinetic energy. The raised car has gravity. The energy in a pneumatic tool is from air pressure. Energy can be mechanical, electrical, hydraulic, pneumatic, chemical, or even thermal. In some cases, it can be controlled simply by turning the equipment or machine off (and making sure it cannot be turned back on). Sometimes, blocking or bleeding is the right approach. If you’re working on a pressurized system, bleeding off the pressure is energy control. If you’re working under a car, blocking the wheels is energy control. You aren’t likely to service your vehicle lifts or spray booths. Tire changers, compressors and alignment racks usually need to be fixed by qualified service technicians. That means you don’t need to worry about hazardous energy from them, right? Almost right. If equipment fails, mark it out of service. If someone could be injured when using it, put a lock on it (on the disconnect, on the breaker or, if it unplugs, over the plug itself). Attach a tag that explains why the lock is there (“damaged – out of service” is fine). And then make sure employees know they mustn’t use it. When the technician is servicing that equipment, that repair person is responsible for the energy control procedure. But your employees need to be trained to watch for energy control devices and leave them alone. If a “do not start” tag or a lock is on a piece of equipment, that equipment must not be used. Think the technicians forgot to remove warning tags? Call them back in. Only the person who put the lock or tag in place should remove it. They refuse to return? Carefully check the equipment to make sure it is safe to use. Send them a note (email is okay) telling them you cut the lock. And don’t use that vendor again. OSHA has numerous reports of employees injured or killed when energy control procedures weren’t followed: • An employee was preparing to add cloth and a bar to a Mitter machine at a car wash while the machine was in operation. The employee’s jacket caught on the cam of the electric motor and he was pulled into the machine, crushing and killing him. If only he had turned
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Turn your safety stalemate into a checkmate with
CHESS, INC
CHESS is your solution for OSHA & MPCA compliance! Working with the automotive repair industry for over 25 years.
Are you aware you need... off and locked out the machine… • An employee was servicing the transmission of an automobile raised up on portable ramps. The automobile rolled off the ramps, with the automobile’s engine compressing the chest of the employee. The employee suffered asphyxiation secondary to external chest wall compression from an automobile engine and was killed. If only he had blocked the wheels…
Don’t be an “if only.”
An AWAIR program by July 2020*
Annual Right to Know / Hazard Communication Training
A COVID-19 Prevention Plan by July 2020**
*By July 2020, automotive repair facilities must have A Workplace Accident and Injury Reduction (AWAIR) program **Essential businesses must have a written COVID-19 Prevention Plan
We Can Help
Contact us today for help with your shop’s safety, health and environmental needs. (651) 481-9787 chess@chess-safety.com www.chess-safety.com
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November 2021 | 19
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CASH IN ON YOUR MEMBERSHIP BENEFITS!
Did You Know That by Being a Member of AASP-MN, You Have Access to Many Other AASP National Benefits? Check Them Out Here! Website and Internet Marketing Solutions Autoshop Solutions, the leader in internet marketing for the automotive aftermarket, has developed and launched the most cutting-edge marketing platform for auto shops. RPM is an all-inone program that bundles your website, pay-per-click, search engine optimization, social media and much more! By using every marketing tool in the toolbox, you’re guaranteed to have a stronger online presence that brings more cars to your bays. With five levels of “Really Powerful Marketing” to match your budget, goals and competition – RPM is built to drive your shop forward. For more information, contact Tony Mercury at (919) 267-1731 or (888) 991-3449 or email tony@ autoshopsolutions.com.
Information Providers IDENTIFIX offers AASP members discounted prices on the industry’s number one technical repair information subscription, Direct Hit. For more information, contact Customer Service at (800) 2886210. Mitchell International offers AASP members a 15 percent discount on any Mitchell RepairCenter™ TechAdvisor package. Call Customer Service at (800) 238-9111 or visit mitchell.com for more information. Mitchell 1 offers AASP members significant discounts on the ProDemand, Manager SE and Teamworks products. For more information, contact customer service at (888) 724-6742, ext. 6986. continued on pg. 22
AASP-MN MEMBER BENEFIT PROGRAMS PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbiz.com CBIZ AIA and United Fire Group (UFG) have created a program for members that includes a special premium discount, exclusive coverage and potential safety group dividend. CBIZ AIA can present quotes from multiple carriers and, as an added bonus, offer members an exclusive 10% discount on their property/liability insurance premiums. EMPLOYEE BENEFITS Business Planning Professionals Contact: Dennis Begley 612-308-6577 / dennis@begley-group.com Business Planning Professionals will provide AASP-MN members with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance. EMPLOYEE VOLUNTARY BENEFITS Colonial Life Contact: Deb Ferrao 612-600-4135 / deb.ferrao@coloniallifesales.com or Tracy Bailey 612-801-0139 / tracy.coloniallife@gmail.com Dedicated representatives can help members transform their benefit package with competitive rates, value added services at no cost and complimentary legal document preparation service. Colonial Life has the tools and flexibility to create a plan to fit everyone’s needs. UNIFORM & LINEN SUPPLIES Aramark Contact: John Majchrzak 612-670-4034 / majchrzak-john@aramark.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/Aramark each year. 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.
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. WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com Autoshop Solutions has developed the most cuttingedge marketing platform for AASP members. Really Powerful Marketing (RPM) is an all-in-one program that bundles your website, pay-per-click, search engine optimization, social media, and much more! With five levels of RPM to match your budget, goals, and competition, it’s built to drive your shop forward! REPAIR SHOP PRODUCTS/SERVICES DISCOUNTS CARS COOPERATIVE Contact: Stephenie Sheppard 405-547-4077 / membersupport@cars.coop Members receive discounts on a variety of products and services they use every day! From discounts on paint and rental cars to office supplies and phone services. Over 50 programs available! INFORMATION PROVIDERS Mitchell 1 Contact: Mitchell 1 Representative 888-724-6742 Mitchell 1 offers AASP members special discounts on the Mitchell 1 family of integrated software tools. Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit ww.w.mitchell. com/ products-services/collision-repair-shop-solutions/ cloud-estimating for more information. TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline, Direct-Hit.
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CHECK GUARANTEE SERVICES Certegy Check Services 877-520-2987 Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments. AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Nate Page 952-854-6551 / nate@aai-assessment.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50% off retail price, starting as low as $15 per assessment. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discounted rates on printed business forms and calendars. SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services, Inc. Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com AASP-MN members receive a 20% discount on Safety Data Sheet Management (SDSLinks), Right to Know(RTK)/Hazard Communication program customized for your facility and monthly safety reminders, and other safety, OSHA or environmental assistance. 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). BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com Members receive a 20% discount on one-on-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 20% discount on monthly sales & management webinars as well as a 20% discount on all 180BIZ advisor training programs.
November 2021 | 21
ASSOCIATE DIVISION DIRECTOR'S MESSAGE continued from pg. 4
CASH IN ON YOUR MEMBERSHIP BENEFITS! continued from pg. 21
Experts are predicting that 2022 may be even more challenging than 2021. These situations are driving costs up and increasing the time needed to continue running our businesses as usual. Businesses are being forced to pass on the increased costs to the end consumer, leading to true inflationary influences throughout the economy. The cost of living has risen 5.4 percent in the last measured period. My hope is that the labor shortage heals itself soon and that we can all find some relief from product shortages and increasing costs of doing business as we approach the new year.
BUMPERS PILING UP?
WE CAN HELP!
Business Coaching 180BIZ offers members a 20 percent discount on one-on-one sales and management coaching programs (covering financial planning and analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 25 percent discount on monthly sales & management webinars, as well as a 20 percent discount on all 180BIZ advisor training programs. For more information, call (540) 833-2014 or visit 180biz.com. Online Educational Portal AASP members have access to free webinars designed to enhance management skills and help their business thrive. Visit elearning.autoserviceproviders. com to check it out. For more information about any of the AASP National programs above, contact the AASP-MN office at (612) 623-1110 or aasp@aaspmn. org.
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WE CAN HELP! A-Con Recycling can help! Give us a call today at 651-252-6000 for more details and 22 scheduling. | November 2021
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ecycling doesn’t recondition, fix or sell bumper cores
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November 2021 | 23
