Most importantly, we want an opportunity for our industry associations to continue negotiations without Manitoba Public Insurance (MPI) cancelling contracts and strong-arming Manitoba businesses.
We are asking for MLAs to support the Minister of Crown Services appointing a conciliator or arbitrator to bring MPI back to the table. We want to avoid a costly and destructive dispute as the collision repair sector struggles to recover from the consequences of the pandemic and years of increased costs.
Please join the fight to let MLAs know that we need fair repair in the province.
The Manitoba Public Insurance (MPI) cancelled the collision industry’s trade agreement Monday, March 15th leaving 232 hardworking Manitoba small businesses without representation against a monopoly that has a poor reputation for being fair within and outside of Manitoba.
MPI increases in remuneration for the trade has not kept pace with the industry for well over a decade while the average compensation for 2019/20 of an MPI employee has risen to $94,240
(2021 GENERAL RATE APPLICATION
Part V – EXP Appendix 12).
Our proposal is substantiated by third parties, namely BDO and Price, Waterhouse, Coopers. A PWC report was commissioned by ICBC and highlights the dismal state of the collision repair industry in Manitoba.
Other reports by Auto Haus that show similar data are also available to support this case. The number of accredited repair shops in Manitoba has declined by over 70 since 2011 and further declines are imminent as 20 per cent of shops are losing
At stake are Manitoba small businesses, their employees, the economic decline of the communities they are in. Fewer facilities mean less service with longer wait times for Manitobans needing collision repair.
PWC reports show that Manitoba shops are the second least profitable in Canada, have the second-lowest profit margin, and can only afford to pay their employees the third-lowest wages in Canada, leaving the Manitoba collision repair trade as one of the least desirable to join as compared to plumbing, electrical and others.
Shops cannot continue to do their job without new young staff joining the trade. The number of repair shops in Manitoba continues to decline while the number of repair shops in the rest of Canada is growing. Clearly, employees in other jurisdictions are paid more fairly to allow for growth in the collision industry.
The actions of MPI are well orchestrated and heavy-handed, bordering on coercion. MPI is also pushing shops to execute their new agreement or suffer potential consequences, wishing to have shops sign under duress without any representation against a goliath monopoly. This has to be stopped and we request the government to appoint a conciliator.