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Supporting Legislators
The following Massachusetts legislators have signed our documents authorizing
us to list them as supporters of the Auto Body Labor Rate Bill, H-1085. This is the highest level of support that we can ask of our legislators
and these people have given that to us.
We thank all of them and are grateful for their support.
House of Representatives (18)
Rep. Lewis Evangelidis
Republican First Worcester District
Rep. Robert Fennell
Democrat Tenth Essex District
Rep. Anne Gobi
Democrat Fifth Worcester District
Rep. William Greene
Democrat Twenty-Second Middlesex District
Rep. Denis Guyer
Democrat Second Berkshire District
Rep. Geoffrey Hall
Democrat Second Middlesex District
Rep. Robert Hargraves
Republican First Middlesex District
Rep. Bradford Hill
Republican Fourth Essex District
Rep. John Keenan
Democrat Seventh Essex District
Rep. David Linsky
Democrat Sixth Middlesex District
Rep. Allen McCarthy
Democrat Seventh Plymouth District
Rep. Patrick Natale
Democrat Thirtieth Middlesex District
Rep. James O'Day
Democrat Fourteenth Worcester District
Rep. Sarah Peake
Democrat Fourth Barnstable District
Rep. George Peterson
Republican Ninth Worcester District
Rep. Smitty Pignatelli
Democrat Fourth Berkshire District
Rep. Theodore Speliotis
Democrat Thirteenth Essex District
Rep. Joyce Spiliotis
Democrat Twelfth Essex District
Senate (4)
Sen. Edward Augustus
Democrat Second Worcester District
Sen. Pat Jehlen
Democrat Second Middlesex District
Sen. Thomas McGee
Democrat Third Essex & Middlesex District
Sen. Stephen Panagiotakos Democrat
First Middlesex District |
The Labor Rate Bill is necessary because auto collision shops in Massachusetts receive the lowest labor rates in the United States, despite operating in one of the highest cost areas. This does not make any sense.
Currently, the average labor rate in Massachusetts is approximately $34.50. By any comparison to labor rates in any other service industry field, this rate is, by far,
the lowest.
If adopted, H-1085 will still provide insurers with adequate “discounts” on labor. As a point of reference, mechanical auto repair rates range from $70.00 to $115.00 per hour in Massachusetts.
Auto collision shops have been receiving inadequately low rates since
1988, when cost containment regulations were adopted in 211 CMR.
Currently, the collision industry believes that the insurers have interpreted the cost containment provisions in CMR 211 93.04 (4), and 211 CMR 93.05 much too broadly, and now violate the principle of fairness for labor rates that is included and specifically specified in those regulations.
The Labor Rate Bill, H-1085, would set up a commission with equal representation of the collision industry, the insurers, and political leaders, and that commission would oversee all issues relating to insurer-paid labor rates in the future.
The commission would determine a national average labor rate, index that rate to the Massachusetts labor market according to figures from the US Bureau of Labor Statistics, and verify those market-based rates to the Insurance Division for enforcement. This is a moderate and fair method of introducing objective, market-based rates into this system.
Auto collision shops would have to comply with higher standards determined by the commission, in order to receive the rates verified to the Division of Insurance. Shops would be classified as “A” or “B” shops, depending upon their qualifications.
The classification system will be helpful to insurers in many ways – quality work, streamlined operations, lower administrative costs, higher efficiency from more professional shops.
In combination with the cost savings insurers will receive from the final adoption of 212 CMR 2.04A (Expedited Supplemental Appraisal Procedure), which was voluntarily submitted by the collision industry, the effect of the Labor Rate Bill on insurance premiums will be negligible.
The higher standards and the classification system will be a great benefit for
consumers.
The Labor Rate Bill is essential for the continuing survival of a qualified, professional and competitive auto collision industry in Massachusetts.
Passage of the Labor Rate Bill will allow auto collision shops the ability to offer a fair career path for thousands of trained vocational school graduates who currently don’t enter the industry because starting wages are too low.
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