Welcome to CIIA Newsletter

Steps To Collision Repair Apprenticeship

The following steps are some recommendations to help ensure your suitability and success in
finding an apprenticeship:

1. Explore your career options with a trained career counsellor
2. Research! Research! Research!
3. Set out a plan of action
4. Ensure your job search tools are in top shape
5. Search for an employer to sponsor you
6. Ensure your interview skills are top-notch
7. Follow-up!
8. Keep positive and stay motivated!
9. An employer wants to sponsor you - What next?

For detailed tips, visit http://www.ciia.com/provinces/ontario/stepstoapp.html

AYCE Student Hiring Event Success

They came, they saw and they signed. A recent career fair held by AYCE Employment Services, a division of Tropicana Community Services, saw a number of young people signed up for apprenticeships with collision repair facilities throughout the Greater Toronto Area.

You can read Collision Repair maagzine's previous coverage of the AYCE program here and here.

This is good news for anyone who wants to see a sustainable future for the collision repair industry. Ontario's autobody students are often not making the transition from the classroom to the shop, with 8 out of 10 students failing to secure an apprenticeship, according to information from the Ontario College of Trades. This is despite a critical labour shortage in the collision repair industry.

A number of collision repair facilities had representatives at the AYCE career fair, including Brimell Group Paint and Collision Center ~ CSN, Fineline Collision Centre ~ CSN, Albion Hills Auto Collision ~ CSN, 427 Auto Collision ~ CSN, Allstar Collision, Wilson Niblett Motors, Mr. Collision and several CARSTAR stores.

"This is the third year of running the program, and every year it's getting more support," said Marc Tremblay, Co-Ordinator of the Autobody and Collision Damage Repairer Pre-Apprenticeship Program for AYCE. "We introduced the career fair last year, and this year's fair was bigger."

AYCE would like to thank the many generous sponsors who helped to make the AYCE Pre-Apprenticeship program a success:

Lincoln Electric, City of Toronto, Collision Industry Information Assistance, Centennial College, Brimell Group Paint and Collision Center ~ CSN and Maaco Systems Canada.

Collision Repair and The Ontario College of Trades

Starting in January 2013, the Ministry of Training, Colleges and Universities no longer will be involved in apprenticeship and trades training for most industry trades and is being replaced with a self-managed organization called the Ontario
College of Trades. Self-management is a noble vision that can work for this industry.

The College will regulate persons in the trades, promote skilled trades and apprenticeship and encourage members to assist in the management of their trade.

To do this, the College will assess a "membership fee". This fee is envisioned to be charged to employers and tradespersons, and in a dramatic turnaround from past policies, to apprentices. Traditionally apprentices were offered grants and credits to encourage them as apprentices and reduce their initial costs as they were almost
always on the low end of the pay scale. This new fee will surprise many of them.

Our anticipation is that the new fee will be $60 per year for apprentices and $120 a year for technicians in the 22 compulsory trades. We expect employer fees to be a hot topic that will face delayed implementation and that techs in voluntary trades(like Automotive Painter) can pay membership fees if they wish..

The College engaged in an extensive public fee consultation with a close date of June 3 to ask for comment on the fees. They were swamped with negative comments, including your associations', and urged instead to target non-licensed workers for increased fines to offset College costs. The College has not released any of the comments received from the consultations to date, but are considering public posting soon. These fees to run the College will be paid on top of the taxes paid by workers and employers to run the Training, Colleges and Universities Ministry, where many staff have left to work at the College. Complaints of double taxation have been heard and the College has responded by identifying that their new fees will not go to government, but directly to the College. The College does not identify any tax credit that may be issued because MTCU no longer needs funding, but we expect the provincial government will not be eager to highlight this option.

In the collision repair trade, your association will ask the College to look at four areas with us:

1)Enforcement of the current regulations to obligate collision repair shops to employ trades licensed workers

2)Urgent work to curb the entry of "challengers" -those individuals who have illegally worked in the trade from obtaining trade licenses due to hours worked, when no theory training was ever taken.

3)Attrition rates of some 85% are evident in the collision repair trade. In other words, only 15% of those apprentices entering the trade actually complete their trades training.

4)Review the training competencies of teachers and curriculum development to reflect real world standards while looking a pre-apprenticeship models for answers to attrition rate dropout.

The Auto body/Collision Damage Repairer Trade Board will be in charge of providing recommendations to the College on our trade. Board members were appointed by the Appointments Council. The only recommendation from the Trade Board that we are aware of is a recommendation to change Automotive Painter to a restricted trade rather than a voluntary trade. This might be tough. Ontario has not changed a voluntary trade to a restricted trade in any sector since the 1980s.

There are currently 4932 collision repair licensed techs in Ontario with 1485 registered apprentices. The Ministry can not find about 1000 of those apprentices currently. Those apprentices started at a college but either dropped out or failed to
write the final exam.

The Auto body and Collision Damage Repairer Trade Board is comprised of a diverse group that includes: a welding equipment manufacturer and former teacher, a restoration tech, a young painter, a mobile auto glass installer, and, the Chair, the union lodge representative for the International Association of Machinists and Aerospace Workers representing some facilities/ dealers in the Thunder Bay and Sault Ste. Marie areas.

Your association was hoping that we could start with the Autobody/Collision Repair Trade Board working on new solutions, but the Trade Board makeup is such that industry orientation sessions will likely be in everyone's best interests. Our first orientation session for the Trade Board is September 12, 2012.

I hope that the College of Trades will understand industry's frustrations, and takes steps to address the issues raised and use membership fees to improve the trade by eliminating illicit and illegal competitors from this industry so that trades licensedqualified technicians can flourish in the workplace.

This is an opinion from John Norris and does not reflect necessarily the association's view.

PLEASE REMEMBER KYLE HICKEY

22 year-old killed in auto body shop explosion

A well-known Nova Scotia car dealership was fined $38,750 this week for failing to ensure a safe workplace in connection with an explosion and fire that killed an employee in 2008.

Kyle Hickey, age 22, a one-year employee of the car dealership's body shop was in charge of preparing cars for painting in the spray booth. An explosion and fire occurred in an area containing barrels of solvent and paint materials on March 13, 2008, burning Kyle significantly and he died in hospital the next day.

A 15-month investigation of the Dartmouth shop by the provincial Labour Department followed and the shop was charged with five offences under the Occupational Health and Safety Act. The dealership pleaded guilty to one charge of failing to take every reasonable precaution to ensure the health and safety of people in a workplace.

According to an agreed statement of facts reported on by the Halifax Chronicle Herald, the explosion and fire started in barrel holding solvents used to wash paint guns. The exact cause was "indiscernible", but was originally suggested as a paint fumes explosion.

The dealership admitted that barrels containing the chemicals were not properly labeled and grounded and that it failed to provide Hickey with any "site-specific safety training".

According to the news agency, the judge, Pam Williams, said there was no evidence that the company's infractions caused the death of Kyle Hickey.

The Crown requested a $150,000 fine, which would have been the largest ever for a health and safety violation in Nova Scotia, while the defense recommended a $30,000 fine.

The judge identified that the dealership spent about $19,000 on safety improvements after the incident and another $9,000 on services for the Hickey family and their employees, and a commemorative plaque and bench on a walking trail.

Judge Williams said "It is important to stress the potential is ever-present for harm to occur when employee hazard-awareness training is not undertaken or refreshed and when flammable liquids are not properly labeled or stored in the workplace."

IF YOU HAVE QUESTIONS ABOUT SAFETY TRAINING OR HAZARDOUS MATERIALS IN YOUR SHOP, PLEASE CALL YOUR ASSOCIATION AT 1-866-309-4272 OR GO TO www.autobodyhelp.ca

Ottawa Catholic District School Board Fined $275,000 After Classroom Explosion

Ottawa, ON - On August 16, 2012, the Ottawa Catholic District School Board was fined $275,000 for a violation of the Occupational Health and Safety Act after an explosion in a school classroom that killed a student.

On May 26, 2011, students in a Mother Teresa High School classroom were making barbeques out of steel barrels. As a student was cutting a barrel with a hand grinder, the barrel exploded. The student was killed.

A Ministry of Labour investigation found that the barrel the student was using had been washed out with a flammable cleaner. The barrel had been stored with its caps closed prior to the class project, allowing flammable cleaning vapours to accumulate inside the barrel. When the student was cutting the barrel, a spark from the grinder ignited the vapours, causing the explosion.

The investigation also found that the school board did not have adequate review and assessment procedures in place to ensure hot work on drums or containers could be carried out safely.

The Ottawa Catholic District School Board pleaded guilty to failing, as an employer, to provide information, instruction and supervision to the teacher concerning safe work practices and recognition of the hazards associated with the class project.

The fine was imposed by Justice of the Peace Claudette Coulas. In addition to the fine, the court imposed a 25-per-cent victim fine surcharge, as required by the Provincial Offences Act. The surcharge is credited to a special provincial government fund to assist victims of crime.

CHEMtrac and EASR Reporting offered by CIIA

Environmental reporting for auto refinish facilities is being handled across Ontario by the collision repair trade association, CIIA or Collision Industry Information Assistance.

All auto refinish shops in the City of Toronto, must report their emissions to air, to the City by July 3, 2012. The City has not yet penalized any facility and will still allow shops to register their emissions but the CIIA believes this "grace" window
will close soon and the penalties and fines will start.

Under the mandatory reporting requirements, emissions of VOCs, Nitrogen Oxide, manganese, and particulate matter over a 2.5 micron size MUST be reported if the amount identified for the year 2011 is over a specific threshold.

CIIA has found in their work, that the majority of shops are well under their reporting levels for most of the emissions, other than VOCs , where most shops are over the threshold reporting level and MUST report.

CIIA has designed a new calculations process for emissions that has been accepted by the City of Toronto and many shops are using this new calculations package from the association.

Shops in Toronto are urged to contact the association at 1 866 309 4272 , as soon as possible, to have this work completed and avoid future fines and penalties. CIIA charges $300 plus HST to complete this report for members shops in Toronto.

Environmental Activity Sector Registry (EASR)

For those shops that remember the old Ministry of Environment Certificate of Approval (or CofA), this EASR is the process that most shops will use to replace or obtain a provincial "permission" for emissions for your shop.

Your industry trade association -CIIA, has worked with the government for may years on earlier models of this process to make it easy and inexpensive. Costs for the new air permit are down some 80% over the older process since being

introduced on October 30, 2011. Over 180 shops have already registered. More information is available on www.autobodyhelp.ca

The majority of shops will be able to qualify for this easier process and shops that already have an old Certificate for solvent-based paints should also apply to upgrade their permissions to cover water-based paint use.

Shops can apply for the EASR themselves at www.serviceontario.ca or if they need help, they can use the association's services for $300 plus HST for the association to submit your application and finalize your approval.

Enforcement action against shops that do not have an EASR has already started withone shop recently being fined $15,000 for failure to possess the approval. Call your association for help for this MANDATORY requirement at 1 866 309 4272.

AFTERMARKET AUTO LIGHTING COMPANY FINED $1.5 MILLION

The Competition Bureau announced that Maxzone Auto Parts (Canada) Corp. (Maxzone Canada) pleaded guilty yesterday for its role in an international cartel involving the sale of aftermarket replacement automotive lights and was fined $1.5 million.

Following a Bureau investigation, Maxzone Canada admitted to implementing an agreement with competitors to set the price of aftermarket replacement lights in Canada from January 2004 to September 2008.

Maxzone is also named as one of the defendants in a class action law suit initiated in London, Ontario in June of 2009 that seeks damages.

On March 29, 2011, the United States Department of Justice reported that Polo Shu-Sheng Hsu, former President and CEO of Maxzone Vehicle Lighting Corp., was sentenced to serve 180 days in prison and pay a $25,000 criminal fine for his role in the conspiracy. Chien Chung Chen, aka Andrew Chen, the former Executive Vice-President of Sabry Lee (USA) Inc., another distributor of aftermarket auto lights, pleaded guilty for his participation in the conspiracy on June 7, 2011. He is currently scheduled to be sentenced on October 16, 2012. In addition two corporations have pleaded guilty.
On October 4, 2011, Sabry Lee pleaded guilty and was sentenced to pay a $200,000 criminal fine. On November 15, 2011, Maxzone pleaded guilty and was sentenced to pay a $43 million criminal fine.

This case is part of an investigation being conducted by the U.S. Department of Justice Antitrust Division's San Francisco Field Office and the FBI in San Francisco. They ask that anyone with information concerning illegal or anticompetitive conduct in the aftermarket auto lights industry to call the Antitrust Division's San Francisco Field Office at 415-436-6660


collission magazine

Statement Regarding the Collection and Reporting of Repairer Business Data

The issue of data ownership is of ever-increasing importance to both consumers and businesses as
technology expands the landscape of digital trade, and the collision repair industry is not immune to concerns
relative to ulterior use of business generated data. During the past several decades, the estimating and management
system companies have increased their product offerings beyond core estimating and management functions for
repair facilities. Their scope of services presently includes the collection, generalized aggregation, analysis, and
sale or provision of repairer data to third parties. Collision repairers contend that:

-
The collection of data is unilaterally demanded as a point of sale requirement for every estimating
system option offered in the market, barring repairers that wish to provide electronically generated estimates
from having the option of keeping their business data from being utilized for unauthorized purposes.

-
The information that is harvested from the collision repairer's system is being used for purposes other
than those that the subscriber had intended when contracting to use the estimating system software.

-
The information is used by secondary customers in ways that may ultimately be detrimental to the
subscribing end-user who generated the data.

When this issue was first broached several years ago, one primary response on the part of the estimating system
providers was that the only data being captured was that obtained via the upload of Direct Repair (DRP) estimates,
and those end-users had implicitly waived any data ownership rights by agreeing to upload estimates as a condition
of their participation in the (DRP) program. They also claim that no privacy rights have been violated since the
information is all collected in a depersonalized manner, and presented as an overall aggregation of data collected.
While we continue to contest the validity of both positions, the advent of cloud based platforms has expanded the
data collection potential to include any businesses utilizing the server-based programs. It has also expanded the
potential of data mining from only estimating programs to the possible inclusion of information generated from
business management programs or other technology based service platforms.

The Information Providers may seek to reassure the collision industry that they have taken all necessary steps to
safeguard repairer/consumer information from data privacy breaches. While the data may remain safeguarded from
threats in the traditional sense of electronic security, the members of the collision industry remain concerned that
the information is not necessarily safeguarded from the technology firms themselves who have built in contractual
permissions to force the industry to permit utilization of the data in ways that were not intended or expressly
approved by their customer base. We believe it is long overdue for our industry to have the express option to
either "Opt In" or "Opt out" of allowing technology firms to have access to ancillary uses of our data as a point of
sale requirement to utilize the necessary tools once intended to aid the industry in running our businesses.

This statement serves as a public request from the collision repair industry to Audatex, Mitchell and other
technology firms who collect data. The industry seeks removal of contractual clauses within End User License
Agreements which require permissive access to aggregate and collect end-user data as a point-of-sale requirement
to purchase those programs. Further, we believe that if a business is to permit their data to be mined, they should
be entitled access to an annual report specifically indicating where that data was used, and a list of parties that
received reports utilizing data from the user's system. We believe the ability for businesses to choose participation
in the data collection process is a reasonable solution, and we look forward to your response.

For more information, contact:

John Norris, Executive Director, Colision Industry information Assistance
Phone: 1-866-309-4272 or e-mail: johnnorris@ciia.com

Caution with the Hyundai Veloster Turbo's Matte-black Paint

Hyundai's new matte finish option on the Velostar adds $1000 to the base price of the three-door Veloster Turbo. The difference between a matte finish and a traditional glossy finish is that on matte finish cars the clear finish has been laid on rought to keep light from reflecting.

Hyundai's matte option incudes a cleaning kit and a disclaimer for the customer to sign to acknowledge the risks. There's also an 11 page owner's manual.

These are the warnings:

Do NOT use wax, detail spray, ArmorAll, or any product made for normal paint
Do NOT use products that are even mildly abrasive, such as polishes, glazes and rubbing compounds
Do NOT use mechanical cleaners or polishers.
Do NOT use terrycloth, cloth or paper towels. Do NOT rub the finish vigourously. This will burnish the paint finish causing a permanent shiny spot. Shiny spots can not be removed.
Do NOT use commercial car wash facilities or their shine enhancement products. Most carwash brushes can damage matte paint.
Remove foreign substances such as insect marks, tar and road debris using a soft applicator and a mild solven , saturate and soak area before cleaning-rub softly.
Hand wash with a soft wash mitt and mild cleaning product safe for matte paint.
Use microfiber cleaning cloths with alcohol-based window cleaner for basic surface cleanups.

"The Outage was Unavoidable…."

If your collision repair business depends on Internet access, what happens when that system breaks down?

Yesterday I called my cable television, Internet, and home telephone phone provider. I was greeted by an automated phone message advising me that due to systems problems my phone company was unable to answer the phone.

A short time later, I received a call from my cell phone provider to tell me that my credit card pre-authorized payment did not get processed. This is not surprising, given they were using a credit card number that I do not own. "Will I give them the
proper card number over the phone," they asked? "No," I answered. "I will call back and give it to you

However, when I returned their call, my cell phone provider advised that it would take 20 minutes just to input the information (bad day there, evidently), so I asked them to call me back. They didn't. When I called them back yet again, I gave them the proper card number with a payment on the card, and then I asked for a copy of the transaction. "Sorry," They answered. "My communications company and the staff are not allowed to communicate by any means with customers, so no receipt is possible."

Last month our association lost Internet use for 11 days while our Internet provider dealt with a massive system failure that turned my Internet modem into a phone modem. To be fair, they are reimbursing us for all our IT costs during this IP "rotation."

Now consider this —

If it were a collision shop that had been locked out of Internet communication for 11 days, this event would be a major inconvenience. However, if it were a collision shop using an estimating company's new "cloud computing" collision damage estimating and management repair system (and the Internet went down), I would likely be out
of business for 11 days in some areas of operation. I may even be permanently out of business.

Improvements and additions to shop management and estimating systems are terrific. They can turn our skills from fixing cars to providing the means of understanding and running a profitable business.

However, the new generation of estimating and management (where your data is not kept at the shop but on the estimating company's server) can pose some real challenges.

Recently, an agent for one of the estimating and management companies held a sales seminar in Ontario, which I attended. When a shop asked what happens when the Internet goes down and they can't access data, they were told that this would not happen because of redundant systems at the company.

When asked what happens if the local Internet provider goes down, the shop was told that the situation would only be short-lived. When asked about additional shop-paid Internet back up systems, or what happens to your data when you don't pay your bill, the answer from the back of the room was "next question."

I admit, the experience of being subjected to an 11 day Internet shutdown has made me cautious.

Remember these famous reported words, "While regrettable, for which I again apologize, the outage was unavoidable" — this came from the managing director and chief executive of a major collision estimating/management software company
in the U.K., quoted in British magazines after an IT failure collapse on September 22, 2006, which left more than 3,000 bodyshops unable to complete repair estimates.

Or how about this one from September 29, 2010:

"We will be looking for confidence and guarantees from (our collision estimating/ management software provider), because it is not acceptable" — from the managing director of claims of one of the U.K.s largest insurers after a major collision estimating/management software firm system outage that left a four day-delay in
processing claims.

He went on to state: "If (our) own claims system went down, we would be fined by the Financial Services Authority

And how did the estimating/management software firm spokesperson respond? "We regret the interruption, and will be taking steps to make sure this doesn't happen again."

This is not a hit against estimating companies, or the situation in the U.K. (or even why insurers can seemingly get guarantees from estimating companies for service continuity that shops can not), but it is a caution about putting all your eggs in one basket. Allowing (and paying for) an estimating company to keep all your data offsite — available only if the Internet, their software, and your recent payments to them continue to be valid and reliable — may present a genuine business risk for a shop.

At a minimum, if you are going to use these types of systems, you should have a separate outside backup — a business-saving process that the estimating firm last week told us could not be done.

A Toronto company is adverting that your repair damage estimates, when you are finished with them, are worth $300 million in additional revenue, by allowing insurance companies to rebill clients for accidents not reported to their insurer.
We should all worry when the dollars to be made on selling your estimates exceeds the dollars to be made in providing you an estimating system, and the estimating company controls your estimates.

These above reflects my own frustrated comments and do not necessarily reflect the association's views.

Cars Now Talking with each Other

When Larry Burns from General Motors Corporation said that it will be possible to totally prevent cars from colliding with each other by 2020, he was being visionary and close to the truth !

In a few weeks, 2,800 cars, trucks and buses donated by General Motors , Ford, Honda, Hyundai, Mercedes-Benz , Nissan ,Toyota and Volkswagen will take to the streets of Ann Arbour, Michigan.

The number of vehicle crashes has declined in the last few years as automakers add safety devices, like airbags, antilock braking, stability control and other devices to keep cars under control in emergency situations on the roads.

The U.S Transportation Secretary, Ray LaHood, pointed out that the Ann arbor experiment will consist of a $22 million program to fit these vehicles with wireless devices that enable Vehicle to Vehicle and Vehicle to Infrastructure communications.

Not only can the cars talk to each other and avoid accidents, the cars can also talk to traffic lights and other road signals. Some cars will be equipped with auditory warnings. And some with active emergency braking systems.

It is believed that connected vehicle technology can prevent up to 80% of all crashes involving unimpaired drivers.

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