MPI criticized for “bullying” body shops

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This article was published 23/05/2021 (1482 days ago), so information in it may no longer be current.

Manitoba Public Insurance is bullying body shops by refusing to negotiate with the Manitoba Motor Dealers Association or the Automotive Trades Association, according to Loewen Body Shop general manager Jesse Loewen.

MPI announced in mid-March, they would stop negotiating with the two groups after being unable to come to terms on a new compensation agreement.

“MPI has determined that negotiations cannot proceed and, under the terms in the existing agreement, had provided a written 90-day notice terminating the current industry agreement with the automotive trades, including existing repair rates, effective June 13, 2021,” they said in a press release.

Referring to the compensation increases demanded by the associations, MPI said ratepayers would face “significant insurance rate increases”.

That’s simply untrue, according to Loewen.

He said body shops in Manitoba are already paid the second lowest country wide, have not received an increase since 2017, even though MPI has increased their own salaries 13.4 percent in that time.

The industry has asked for $65 per claim, which Loewen said would cover the cost of doing MPI estimates and the cost of training tools and equipment, required for the more advanced vehicles they encounter today.

MPI stated they were committed to working directly with repair facilities under a new agreement rather than working with the associations, but Loewen said those are bully tactics.

“Since 1937, over 84 years, we have been serving the citizens of Steinbach and the surrounding communities,” Loewen said in a press release issued by both associations. “Now to have a government-owned monopoly walk away from negotiations, using bully tactics on our membership, and introduce a contract that could result in more closures of shops, loss of service and choice is disheartening and shameful and not the way to treat a business partner.”

In an interview with The Carillon Loewen said MPI claims are a large part of their business, approaching 95 percent of what they do.

“Everybody’s shop is different, but the vast majority of collision repair in the province is MPI work,” he said.

Loewen said they’re asking for MPI to resume negotiations and have been calling on the province to help. “People aren’t getting back to us,” he said.

They’ve asked for the appointment of an independent conciliator and a meeting with the MPI Board of Directors.

Craig Dunn, the lead negotiator for the Manitoba Motor Dealers Association, said they don’t expect to negotiate with the board, but only want to share their side of the story.

“We are not asking for the board to negotiate,” he said. “We want them to hear our story as we believe the MPI executive has not given them all the facts.”

Loewen doesn’t feel this is too much to ask.

“Really all we’re looking for is for them to start negotiating with us,” he said.