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Perth shop closures
Two long established panel shops closed in Perth at the end of June, exemplifying what is feared to be a rationalisation of smash repair businesses around Australia.
John Hughes' Automotive Body Repairs and S & D Zammit both closed, taking with them a total output of 80 car repairs a week which insurers will now have to replace elsewhere.
The Hughes' shop was one of the biggest in Western Australia, with a staff of 45. At the beginning of this year the management went through the pros and cons of moving to a new location at a cost in excess of a million dollars. Even though the shop was turning over around $500,000 a month it was barely breaking even. Spokesman Steve Fraser says: "In 1995 we were being paid $26 an hour by the insurance companies and our labour cost was about $13 an hour. Now, ten years later, we're getting $28 an hour but our labour payout rate is more than $20 an hour. This is on top of lots of other increases that we can't recover.
"Unless we were prepared to compromise on quality and customer service there was no point in staying in business. We weren't prepared to do that."
The Hughes' repair shop is part of a much bigger business in dealerships and parts. It sells between 800 and 900 used cars a month and will retain a small part of the repair shop to prepare its own cars for sale. Most of the equipment, however, will be sold off. All members of staff have been found other jobs either within or outside the group.
Fraser acknowledges that a move to real time, real money may have improved the outlook but he doubts it will ever be adopted in Western Australia. He says that SGIO trialed it about four years ago but abandoned it after three months.
Even though there is vehement opposition to IAG's web-based repair management system (WRM) in NSW, it has been operating in Western Australia for some three years and is now entrenched in the role of reducing repair quotes because of bidding competition. This also played a role in Hughes' decision to close.
S & D Zammit was a smaller shop down to 10 employees from an earlier 16, but had been operating in the Osborne Park area of Perth for more than 30 years. Sil and Dawne Zammit had reached the stage, as many ageing repairers currently have, where their repair business was showing a substantially lower return than would the real estate it occupied. Like John Hughes', the Zammits could see no profit improvement in the future and decided to put their business on the market. They had a buyer at $350,000 ‘ which included the business as a going concern and all equipment and consumables that went with it. But the sale fell through when their main insurance work provider said that the status of preferred repairer held by the Zammits would not be extended to a new owner. They therefore have had to abandon any chance of selling the business because, without the insurance badge, it is worth only what its equipment can fetch at auction.

DuPont chooses DNS
After several months of reviewing different bodyshop management systems, DuPont Performance Coatings (DPC) has named DNS Technology as its preferred supplier. A spokesperson for DPC said, ‘We are pleased to announce an alliance between our companies aimed at providing our customers with a comprehensive package of bodyshop management tools’.
DuPont Performance Coatings is the largest automotive coatings company in the world, and is promoted under the brands Standox, Spies Hecker and DuPont Refinish. DPC customers benefit from a wide range of environmentally responsible solutions with a technological edge and the highest quality standards that deliver productivity and customer satisfaction.
DNS Technology is a well known software supplier to the industry with over 16 years experience. Its flagship product, QuotePlus caters to every aspect of running a panel shop from estimating to job costing, and includes a number of labour saving e-commerce solutions. With its modular design QuotePlus can be tailored to meet the needs of shops from small to large.
The arrangement between DPC and DNS Technology underscores the importance both companies place on offering state of the art, tailored solutions, products and services to assist customers improve their business performance.
The DNS Technology QuotePlus product will have full connectivity to the range of tools available through the DPC 'On Trac' business essentials program.

First bodyshop survey launched
The first Australian independent bodyshop national survey has been conducted by market research company Market Metrics, promising to fill many of the information gaps in the Australian smash repair industry.
The survey was commissioned by the Australian Accident Repair Network (AARN) with input from this magazine,
Australasian Paint & Panel
It was paid for by seven major industry stakeholders in insurance, paint, computer management systems and car makers who wish to remain anonymous to preserve the unbiased character of the survey. For their contributions each of the seven will receive a full copy of the general survey along with specific reports tailored to their particular industry segment. Other organisations wishing to have a copy of the survey will need to purchase it from AARN, (03)9792 9422.
The survey was sent to some 5000 repair establishments around Australia via a mailing list compiled especially for the project. The repairers were asked to fill in a 10 page questionnaire covering all aspects of their businesses. Knowing that not all panel shops would cooperate in supplying the data simply for the good of the industry, Market Metrics offered two $1000 prizes to be drawn from those sending back their surveys. To assure anonymity, the questionnaires did not ask for the names of respondents. Identifying the two incentive winners was achieved by a code number known only to Market Metrics which is bound by the Market & Social Research privacy Principles, an approved code under the Commonwealth Privacy Act (1988).
Ever since the inception of auto body repairing in Australia there has been a lack of statistical information about panel shops. Nobody is quite sure how many there are, where they are located, how many people they employ of what equipment and consumables they use. Insurers and suppliers have conducted selective surveys to get specific information but there has never been an independently mounted national survey.
The 2006 survey deals with brand badges, staffing, wages, training, turnover, treatment by insurance companies, guidance and service from car companies in the matters of training and parts, the perceived performance of paint companies, the performance of computer estimating and management systems, information levels from the trade media and the future business outlook.
The survey is, in fact, a vehicle for panel shops to tell their work providers and suppliers what they think of their performance. Hopefully, this will lead to greater efficiencies and better cooperation in the industry.
Some of the survey's general findings will be published in Paint & Panel
According to the market research company an accurate Geoff Bedford, general manager of AARN, believes it should be possible to repeat this kind of survey each three to five years.

New shop group for Melbourne
A new repairer group, with the intention of becoming national, has established itself in Melbourne under the name of The Complete Collision Group.
The brainchild of repairers Mark Poppa and Tony Borrelli, Complete Collision began operating as a single entity on 1st July. The repair shops in the group will share the same decorating style and colour schemes. Inside they will move towards having identical equipment, computer quoting and management systems.
Mark Poppa is a strong believer in basing a repair business on relationships with car owners first and foremost, followed by business coming from dealerships and car makers rather than insurance companies which, he says, do not look after repairers.
"We believe in doing repairs the correct way," he says, "and if insurers don't allow us to do that we are quite prepared to tell them to take their cars out of the shop."
Poppa acknowledges the change of work provider emphasis as major car makers move into appointing preferred repairers. His group is already in negotiations to become a preferred repair for one of the big three makers after having participated in trials over recent months. Complete Collision Group will have preferred car badges on its walls but not preferred insurance badges.
Having acquired six shops to launch the group, Complete Collision will offer each of the former owners shares in the new company but it is up to them whether they are taken up. Some may prefer to have their capital released and be well and to manage the shop. Each site will carry the name 'Complete Collision' followed by the name of the suburb. Poppa would not reveal the locations of the shops until they had officially opened.
The benefits of a group ‘ which is planned to grow well beyond the initial six ‘ include better buying power, ability to spread work, and more clout when it comes to negotiating repair methods with insurers. There are also salving by centralising management at a North Balwyn location which is devoted totally to running the group.
Customer choice of repairer that is now become established throughout Australia suits the new group because it means that a repair is discussed with the car owner rather than an insurer. With an owner, repairer and probably car maker all unified over the repair method, insurers are less likely to object.
One of Complete Collision's rules is that it won't use recycled or after market parts in spite of pressure from certain insurers to do so.
The company has employed an outside consultant to monitor the business progress of the company so that there is unbiased advice always available.
"This is not a franchise arrangement," Poppa says. "Every shop in the group is an equal part of the group."
Complete Collision has chosen Car Quote as its quoting system, Auto Robot alignment and measuring, Glasurit paint (subject to negotiation) and booths by a new entry into the business called Saw Booths (CHECK) made in Melbourne. Poppa was lavish in his praise for Saw, saying that its service and skill was exceptional.

Sikkens to release waterborne
Akzo Nobel is planning to release a range of waterborne refinish products under the Sikkens 'Autowave' brand. It is currently running evaluation trials in a limited number of repair shops that have expressed specific interest in using waterborne products.
Sikkens Autowave is a complete system offering primer, basecoat and clear coat. In terms of environmental responsibility it is ahead of its competitors in Australia ‘ and well as some other parts of the world where Autowave is sold. While there are several brands offering a waterborne basecoat, not all have a primer and clear to go with it.
Sales and marketing manager for Akzo Nobel, Barry Edney, says that although Autowave is indicative of the direction in which the refinish market is heading, his company is taking its introduction quietly. It will probably be at least the end of this year or early next before Autowave becomes generally available.
With no Australian legal compulsion to switch to waterborne technology, not a lot of shops will be interested in it initially. But there are longer term reasons why that will probably change.
One is that, in some circumstances, waterborne can be a better performer in the hands of a skilled painter than solvent based paint. As long as the baking oven has a strong airflow and spray guns specifically made for waterborne technology are used, Akzo Nobel maintains that it gives excellent performance and overall productivity comparable to that of solvent borne products. Autowave is particularly easy to use for spot repair, offering fade-out for fast and invisible repairs with no halo effect. The Autowave system is also at home drying under infrared heaters.
Another reason that may draw shops to waterborne is that more and more cars are being factory painted in it, making their repair correspondingly easier in waterborne. These are not only imports either. Some Australian produced cars are also coming off the production lines painted in waterborne finishes.
Of course, Australia will sooner or later legislate against solvent based paints ‘ along with a number of other environmentally harmful substances. Companies that already have waterborne programs in place will have a flying start.
Akzo Nobel is far from being a new player in waterborne technology. It is a major supplier of waterborne refinishes throughout the UK, Western Europe, Eastern Europe and some southern states of the US. It is also about to be launched in Japan.
In the highly competitive refinish market, price is a vital consideration when contemplating a switch to waterborne. Edney says that while Autowave is marginally dearer than solvent-based material per litre, other savings in the process would bring total repair costs into line with Akzo Nobel's premium Sikkens brand, Autobase Plus.
While the carrier for waterborne pigments is obviously water, it is not the same water that comes out of the tap. In addition to purchasing the refinish paints, shops must order proper Autowave reducers for diluting the paint and cleaning guns ‘ in a dedicated waterborne gun cleaner. Minor spills can quickly be cleaned up with tap water.
A feature of Sikkens waterborne clear which can alarm a first time user, is that it sprays on as a milky, cloudy paint. It is not until it starts to 'set up' on the panel that it goes totally clear.
One of the frequent questions that Akzo Nobel is asked about its waterborne Autowave is can it be used to surface blend with existing solvent based paints. The answer is yes. While it is up to the painter to correctly mix and match the colour, waterborne paints can be used to surface-merge with solvent borne paints. The opposite can be a problem, however.
Akzo Nobel will be holding demonstration days at its Melbourne training facility
On Friday, 21st July between 12.30pm and 4.00pm and on Thursday, 9th November between 12.30pm and 4.00pm.

System One fights back
One of the leading polishing products on the market, System One, is very much still on the market according to its adamant managing director, Peter Doolan.
The marketplace evidently became confused by the appearance of another, similarly branded product along with some misinformation that System One was no longer available. Doolan says that the only change to the marketing of System One is that it is now being sold direct to panel shops and retailers rather than going through distributors.
According to Doolan, when System One first appeared Australia in 2001 it 'turned polishing upside down' because it produced a lasting, scratch and swirl-free high shine with a single application. Other polishes tySystem One took seven years to perfect after its initial formulation in a panel shop. It is sold as a system, with a buffing tool, wool and foam pads, polishing sponge and microfibre cloth. At the heart of the system is the one litre bottle of polish.
To polish an average car uses about $20 in materials and four hours in labour. Doolan points out that because of System One's superfine particles it takes longer earlier in the polishing process but that is more than made up at the end.
System One is aimed at the prestige and enthusiast end of the market where appearance is paramount.

Don't write off Rover
Concerns over the repairability of MG Rover vehicles have been answered by a new initiative from XPart, the UK ‘factory approved’ distributor of all genuine MG Rover parts. Xpart is owned by the logistics giant, Caterpillar.
Under the scheme, XPart is ensuring that replacements MG Rover parts are readily available and that parts prices are not a factor leading to the vehicle being written off in an insurance claim.
A dedicated team is now responsible for working closely with assessors and repairers in the UK. Assessors calling the team are required to supply a full original estimate. A case number is allocated to the claim, and XPart’s team reviews the prices of the replacement parts and send back a revised price offer to the assessor and repairer within four working hours. If the revised price offer is accepted, XPart completes the order and send the parts directly to its nominated XPart distributor.
‘As well as helping MG Rover owners keep their cherished vehicles on the road, the campaign is intended to raise awareness of the availability and value of quality replacement parts for MG Rover cars,’ says Charles Binns, sales and marketing director for XPart. ‘In a small number of cases, MG Rover vehicles have been classed as a total loss when assessors and repairers believe that they can no longer get good value, quality replacement parts for the car. This simply isn’t the case. We are committed to the supply of original equipment quality MG Rover parts for at least the next ten years, and currently have over 95 per cent availability of replacement parts as part of our MG Rover stock inventory.’
Industry figures indicate that approximately 15 per cent of all accidents result in a total loss but XPart has found that since it started investigating the issue in April 2005, this figure can rise to as much as 30 per cent of some MG Rover vehicles.
Confusion over MG and Rover cars has been reflected in Australia. When the UK company went into receivership in April of last year, a cloud hung over the continuity of parts. But now, according to UK Automotive in Sydney, the flow of parts is secure. This means that insurers and repairers will be able to repair rather than write off.
UK Automotive does not sell direct to repairers or the public but will supply the names of distributors around Australia who do. The phone number is (02) 9708 5422 or some information may also be obtained from contacting info@mgrover.com.au.
The parts are guaranteed for 12 months and if fitted by a registered repairer are also covered for labour costs.
MG and Rover is now owned by Chinese interests and both brands may be started up again next year, made in China. If that is the case, OE parts will again be produced by the factory.

Glasurit searches for top painter
As a part of the Glasurit ‘Access’ program, Glasurit spray painters are competing against each other to become the number one Glasurit spray painter in Australia. The Glasurit annual painter ‘state shoot-out’ has already commenced and will conclude in August 2006.
‘Our objective for the shoot-out is to foster a performance and quality culture amongst Glasurit painters and, at the same time, recognise individual excellence in both application and quality of finish,’ says Pascal Goerdes, managing director of BASF Coatings Australia Pty Ltd.
The annual painter ‘shoot-out’ is not only fun and a rewarding event for all who participate, but also an ideal opportunity for painters to cross-share ideas and information.
The shoot-out is open to all Glasurit painters who are registered to the Glasurit painter academy.
The event assess painters on three performance areas ‘ colour matching, time of application, quality of the job, material consumption and Glasurit product knowledge.
Each state is hosting its own painter shoot-out function, with the top three achievers from each state being recognised and becoming eligible to attend the national shoot-out.
The top three state finalists from each state will be invited to attend a three day national shoot-out event that will be linked to the 2006 Bathurst 1000 car race, making the event an entertaining and rewarding experience for all the top state contestants.
The Glasurit shoot-out forms a part of the Glasurit Painter Academy, which has been launched to Glasurit customers over the past 12 months.
One of the prime objectives of the Academy is to provide flexible training that is based upon the needs of the individual rather than supplying set off-site training courses. The Academy will provide as much in-shop training as possible as well as compliment this with targeted external courses that are based on the needs of the individual.
The process for becoming a member of the Glasurit Painter Academy is as follows:
An employer nominates a candidate for the academy. Upon receiving the nomination the painter will be sent a welcome pack and a formal registration into the academy including a self-assessment.
Upon completion of the self-assessment, an in-shop training assessment will be conducted that will establish personal training to enable the painter to gain formal ‘qualified Glasurit painter’ status.
Training will consist of a combination of in-field training, external training and by correspondence, in line with the painter's personal program.
The Academy has six competency levels:
- Glasurit Painter
- Qualified Glasurit Painter
- Qualified Glasurit Painter ‘ Silver Level
- Qualified Glasurit Painter ‘ Gold Level
- Qualified Glasurit Painter ‘ Platinum Level
- Glasurit Master Painter
By being involved in the Academy Glasurit painters can expect assistance and support in the application of Glasurit products and processes, exposure to the latest techniques and problem solving, recognition and rewards for attaining set competencies and performance levels, the opportunity to participate in the Glasurit Painter Shoot-Out and the possibility of gaining international accreditation upon reaching a set competency level.
For further information on the Glasurit Painter Academy,contact Glasurit on (02) 8787 0100.

The anatomy of repairs
Latest figures from one Australia's leading car insurers reveal that
the average repair cost over all vehicles is segmented as follows: Remove and replace (R&R) 13 per cent, structural and panel repairs 18 per cent, paint labour and materials 20 per cent, parts 49 per cent.
These percentages have attained greater significance in the light of the negotiations between NSW repairers and the NRMA as well as providing a basis for the impending NSW mandatory code of conduct between repairers and insurers.
The figures highlight the fact that the often heated dispute over R&R times and dollars per hour really only applies to 13 per cent of the average repair.
Structural and panel repairs ‘ which relate to panel beating, welding and alignment ‘ take 18 per cent of a repair but are not part of the commonly used times manuals because they cannot be accurately quantified. In other words they are still open to negotiation between repairer and insurer.
Painting, which in these figures includes labour and materials, accounts for 20 per cent and is being incorporated in the MTA online times manual. However, with the national move to real time and real money, the components of paint labour and materials will be separated. The MTA times manual will suggest individual times for painting each body panel of a vehicle, allowing for the painting of multiple panels. The materials component will be shown separately and will include calculations for the cost of paint, fillers and other paint shop consumables.
That leaves 49 per cent of the cost of an average repair as parts. The markup which insurers allow on parts ‘ being the difference between list and actual price paid ‘ is a critical factor in the profitability of a panel shop.
Negotiations between the MTA and NRMA are said to have reached an agreement on pricing which will allow repairers a reasonable profit on parts.

New parking station
This is no fantasy. It's Germany's latest parking station, built in Munich. Advantages are that it takes up only 20 per cent of the space of a conventional car park for a given number of cars. Owners claim that it takes less time to retrieve a car and there is no danger of cars being damaged by other cars or parking attendants.

One stop shop for apprentices
From July 1st 2006, MEGT (Australia) Ltd will be the only New Apprenticeships Centre to be able to provide a nationwide service and support with a single point of contact for employing apprentices.
"MEGT will also provide local personnel who have a good understanding of local business conditions,’ says Jan Griffin, general manager of MEGT’s New Apprenticeships Centre.
In 1998 the Federal Government recognised the need to build skilled trades in Australia and put in place a service to not only encourage businesses to invest in apprenticeships and traineeships but also to make it easier for them to do so.
The New Apprenticeships Centre program has evolved over the past eight years so that there is now a large network of advisers across Australia.
‘The increased one-on-one services in rural and regional Australia is in addition to the more than 300 New Apprenticeships Centres which will operate from 1 July,’ says the Minister for Vocational and Technical Education, the Hon Gary Hardgrave MP.
‘It’s extremely important the advice we provide, while at no cost to the employer, is accurate and reliable. Businesses making decisions about their future growth rely on our local industry knowledge as well as detailed knowledge of federal and state benefits and requirements. They trust our unbiased advice.
‘Our fast response to employer queries is backed up with a strong Australia-wide infrastructure. It’s really important to ensure Field Officers have the tools to respond quickly and that’s where our MEGT online service is helpful.
‘Most of our clients are small businesses who do a lot of their paperwork at night. I know this often happens in the smash repair industry where the owner has hands-on involvement with the shop during the day. So it’s quite handy that our clients can access this facility too. They can see when incentive payments are due. They can download pre-populated incentive application forms. They can see the status of their new apprentices. It means they can keep in touch at times that suit them.
‘I think the New Apprenticeships Centre program is a marvellous help for Australian businesses,’ says Jan. ‘It’s very fulfilling hearing about their successes with apprentices and trainees.’
There is a single phone number that will connect you to your nearest MEGT office:1300 365 022.

Clarifiation on Budget Direct quoting
In the May/June issue of Paint & Panel page 36, was a story 'Insurance comparisons online' in which it was stated that motor insurer, Budget Direct, would refrain from quoting insurance cover to applicants outside its target market group.
Budget Direct says this is not so and has issued the following statement:
"Budget Direct is aimed at the average Australian who tyPhilosophically, we’re all about offering low cost car insurance through the correct assessment of risk.
Our sophisticated underwriting allows us to pinpoint risk so we tailor our premiums accordingly. Our advanced technology developed by our group allows for high-level data analysis, resulting in cost savings that are passed on to customers in the form of lower premiums.
In some instances we may be unable to offer car insurance due to the underwriting criteria, although like most insurers, examples of this may happen with customers looking to insure highly modified or performance enhanced vehicles. There are specialist insurers available for these customers.

Neville Moulden retires
Paint & Panel's Melbourne advertising manager, Neville Moulden, has retired after representing the magazine for fifteen years.
When he joined the Yaffa Group, which publishes Paint & Panel along with 35 other magazines, he was already experienced in media. He'd worked for a group of county radio stations under the name of Argus Broadcasting Service (later Southern Cross) then to GLV 10 and some on-camera appearances in Traralgon. He was involved in the widely publicised helicopter crash on the Barracuda Oil Rig where he was hit by rotor shrapnel but survived. Others on the rig were not so lucky.
Then to the Sun News "In the late 60's, sixty broadsheet advertising pages including 20 supermarket pages per week," he recalls. "Coles and Myer were independent and were huge advertisers, as were many other stores. But the good times didn't last and afternoon newspapers lost circulation, and in 1990 Murdoch merged two Melbourne newspapers to form the morning title Herald Sun. As a result I was retrenched. By the way, everyone needs to be retrenched at least once. It's good for the soul.
"So in 1991 I commenced my love affair with Paint & Panel. At that time she was grand but a bit plain. Printing capacity was restrained: mainly black and white with a percentage of advertising pages in colour. APP grew from a quarterly to a bi-monthly and while she has been at times a tough, feisty and difficult mistress, she has also been good to me.
"I was pleased to play an integral part in establishing the Auto Body Repair Awards 10 years ago. I well remember the excitement shared by the boys at Marque Body Works, Hallam; sandwiches in their boardroom and the official presentation. After the inaugural award Saint Gobain became a sponsor, more awards were added, more shops were visited across Australia and logie type presentations were introduced.
"I appreciate the support of managing director David Yaffa, and the publishers
and editors with whom I've worked.
"So ends a fifteen year affair to remember."

Watch out for claim scam
Most people are aware of carjacking where the victim is usually run into from behind and when he stops to exchange details with the other driver his car is stolen and he is often assaulted.
The UK has come up with a variation which is worth looking out for in Australia. In this scenario the victim is induced to run into the car in front, and the perpetrator then embarks on an insurance scam to maximize the payout from the accident.
The problem for the victim is that, as a general rule, the driver who does the running into is in the wrong, even though it may have been as a result of the car in front slamming on its brakes for no visible reason.
The fraudster then excessively claims against the victim's insurer. As well as damage to the car - often an old banger - there is usually a compensation claim for injuries to the driver and passengers. On top of this, the claim often includes inflated fees for the hire of a replacement vehicle and compensation for time off work. The fraudsters are even creating networks of companies to help present and inflate the claims. A minor shunt can be pumped up to quite staggering amounts.
UK insurers believe there could be as many as 10,000 induced accidents a year, costing some $A600 million, and pushing premiums up. The gangs that organise the accidents own and control accident repair garages and car hire firms, which present inflated invoices to victims and insurers. So profitable has the practice become that it has spread from its beginnings in the north-west of England right through the country. Staged crashes usually occur at busy roundabouts or motorway slip roads.
Insurers linked one gang to 400 staged accidents, finding evidence of other crimes, including drug trafficking and running. But the police refused to investigate further unless the insurers paid for the investigation.
The Association of British Insurers has called for a national strategy to tackle organised fraud. Some of the ABI's concerns may be addressed by the Home Office's upcoming fraud review. In the meantime, insurers have created the Insurance Fraud Bureau to share intelligence on suspect claims and use new technology to sift through millions of cases looking for patterns or links. The system is due to go live in July.

You can't give the sack if. . .
Although the new WorkChoices laws generally only apply to companies with more than 100 employees (which cuts out virtually all smash repairers), there are a number of unlawful termination provisions that apply to all employees in Australia, regardless of the size or type of business that employs them.
The provisions prohibit an employer from dismissing an employee on discriminatory grounds.
Employees can apply to the Australian Industrial Relations Commission (AIRC) if they believe their employment was terminated for an unlawful reason. Unlawful reasons include being sacked because of:
‘ temporary absence from work because of illness or injury;
‘ trade union membership or participation in trade union activities outside working hours or, with the employer’s consent, during working hours;
‘ non-membership of a trade union;
‘ seeking office as a representative of employees;
‘ the filing of a complaint, or the participation in proceedings, against an employer;
‘ race, colour, sex, sexual preference, age, physical or mental disability, marital status, family responsibilities, pregnancy, religion, political opinion, national extraction or social origin;
‘ refusing to negotiate or make an Australian Workplace Agreement;
‘ absence from work during maternity leave or other parental leave; and
‘ temporary absence from work because of the carrying out of a voluntary emergency management activity.
An employee does not need to have completed a qualifying period of employment before making an unlawful termination claim and there is no income restriction.
The Australian Government will provide financial assistance for legal advice to eligible employees who believe their employment may have been unlawfully terminated.

SurePlan merges with UK company
SurePlan, a leading Australian fleet manager, has announced a merger with UK based The Innovation Group plc, (TiG).
Commenting on the transaction, Adrian Stone, founder of SurePlan Australia, said ‘This is an exciting deal for the Australian motor risk-carrier industry, as it combines the Innovation Group’s insurance sector expertise with that of SurePlan’s fleet management expertise. This will provide unrivalled capability within a single service provider for companies who operate both across and within these sectors."
Stone will remain as an advisor to the combined business.
Melbourne based SurePlan was founded in 1993 and is now a leading provider of outsourced accident and risk management solutions to the leasing and self insured fleet sectors. It has assisted organisations to minimise their operating costs and increase safety amongst drivers. It has a unique technology solution which was amongst the world’s first fully automated fleet risk management systems embodying a computer assisted driver risk audit and driver coaching tools.
As part of its service, SurePlan manages accident repairs for its clients through a network of what it terms 'primary repairers'. They are selected under a stringent set of rules and guidelines before becoming a part of SurePlan’s network. To become a network primary repairer, repairers must meet certain requirements in relation to size of shop and the area they are covering. They must offer clients additional services such as TiG provides specialist outsourcing services and software solutions with a prime focus on the insurance and risk carrying markets. With offices in the United Kingdom, Australia, Canada, Germany, Japan, South Africa and the United States, TiG employs over 1200 staff worldwide. Their extensive global client list includes trusted names such as Zurich Insurance (UK) and Australia’s IAG (NRMA Insurance).

Toyota debut at Frankfurt
Toyota will exhibit for the first time at Automechanika in Frankfurt on 12th to 17th September 2006. It will join VW, Audi, DaimlerChrysler, BMW, Seat and Skoda.
Alain Uyttenhoven, vice¬ president aftersales of Toyota Europe, sees his company's participation in the Automechanika as confirmation of its focus on customers and busi¬ness associates in Europe.
The service business continues to be highly lucrative with up to 50 per cent of the carmakers' profits currently being generated in the parts and service sector. Dietmar Hildebrandt, head of Volkswagen aftersales says: "The repairs, maintenance and other services called for by more than ten million Volkswagen vehicles in Germany and over 50 million worldwide represents not only a big challenge to be faced every day but also a huge potential for successful service business."
The new Group Exemption Regulation will liberalise the market even more over the coming years. As the world's biggest trade fair for the automotive service sector, the Automechanika gives automobile manufacturers from all over the world the ideal opportunity to present their products and services for the aftersales market to more than 160,000 top professional visitors. Hildebrand adds: "Volkswagen is pleased to once again use the Automechanika as a forum for an intensive dialogue with importers, business associates and applicants. Staff members from 149 Volkswagen import companies and the 10,318 Volkswagen dealers worldwide have the chance to see for them¬selves just how productive and innovative Volkswagen service is. The focus of the fair for Volkswagen is on presenting the company's latest products and trends in the field of service and technical repairs, as well as everything connected with the original parts and accessories business."
Audi's Automechanika presentation will be held under the motto "100 % Audi. 100% Service" and provide an all-round experience for visitors.
"In Frankfurt, we aim to emphasise our premium service, which corresponds with a premium brand", explains Johannes Thammer, head of customer service and original parts for AUDI AG. From professionals to trade-fair visitors, the focus of all activities is on people, adds Thammer. Original Audi acces¬sories of the latest generation are characterised by sporting elegance and top quality. A modern service programme oriented uncompromisingly towards the customer and innovative workshop systems set appropriate accents.
This year, Seat is concentrating its presentation on accessories. "We will exhibit two Seat cars fitted with our range of accessories. Additionally, we will show our service and parts-service systems and special tools," says Melanie Stöckl, head of public relations, Seat Deutschland GmbH.
This Automechanika is the world's biggest trade fair for the automotive aftersales market and Messe Frankfurt expects the year's event to be attended by over 4,500 exhibitors who will occupy around 300,000 square metres of exhibition space.
Further information about the Automechanika can be found on the internet at www.automechanika.messefrankfurt.com.

Where the market is headed
Although here are no official figures for Australia, there is a general belief that panel shops are serving a diminishing market. If the US position is any indication, that belief is true.
Despite a 53 percent increase in vehicles on U.S. streets since 1980, the number brought in for collision repairs nationwide has declined.
In 2004, the most recent year for industry figures, 17 million cars and trucks were repaired. In 1980, according to industry estimates, 18 million to 19 million were fixed.
Although most streets and highways don't feel safer today than they did 10 or 20 years ago, they are statistically safer in some ways. The percentage of vehicles involved in accidents each year has dropped from 20 percent in 1980 to 16 percent in 2004, according to industry figures.
The decline is mostly attributable to equipment such as high-mount third brake lights and anti-skid braking systems, as well as stricter enforcement of laws agdaisnt driving while intoxicated, and better-designed roads, says Bruce W. Cooley, director of marketing at Sherwin-Williams Automotive Finishes.
Sophisticated 'accident avoidance' equipment is now being added to new cars, too.
"I tell shop owners that it isn't likely that the business will go away," Cooley says. "But what I've tried to tell them is that trends in the industry don't suggest that things will get better, and in fact, things will probably get worse."
While there has been a decline in the percentage of people involved in accidents annually, the number of vehicles totalled in accidents has increased dramatically, as has the number of people who choose not to fix their cars after an accident," he added.
Safety equipment such as air bags has substantially increased the cost to repair cars after an accident. Consequently, the annual number of total-loss vehicles has increased from four percent of the vehicle population in 1980 to 20 percent in 2004.
And, as insurance premiums rise, drivers are increasing the amount of their deductibles. After some accidents, they just don't get their cars fixed, Cooley says.
"This all adds up to less work for body shops. In fact, the number of body shops has declined from about 100,000 nationwide in 1969 to about 40,000 today."

Auto body repair in 2010
Robert Hadfield is the owner and publisher of British website ABP Online, a daily updated newsletter to members of the smash repair industry. Every so often he looks into his crystal ball for some predictions about where the industry is going. Here he sets the date at 2010.
One of the principal drivers of the shape of the body repair industry will be new vehicle technology. Already we're seeing some weird and wonderful materials and features being built into new vehicles as they become more a lifestyle statement rather than simply a mode of transport. This trend will accelerate and will shape the future, not just of the body repair trade, but the profile of the motor industry in general. Technology will probably lead towards a greater renew and refit mentality within the industry which will tend to spread to the vehicle itself and also to consumers i.e. a trend towards more total losses based on both economic and emotional requirements.
Another important 'driver' will be consumers themselves and the services they require. Consumer demands in the area of like for like replacement vehicles will lead to far more sophisticated arrangements between insurers, policyholders, hire companies and those involved in the fault/non-fault process. It will also lead to greater policy differentiation and pricing.
Insurance underwriting will also become more sophisticated by 2010 to cope with the variations in technology and vehicle features and this in turn will impact on the future design and cost of vehicles. The cycle of cost, design, desire and profit will rumble on.
For repair shops, I would suggest a greater specialisation towards manufacturer marques with repair facilities becoming increasingly aligned to vehicle sales outlets. By 2010, 'all makes' bodyshops will be left to concentrate on an ageing car population and on minor body damage and rectification work. There will be a significant dilemma here as the 'Fred in the shed' operator, who previously undertook this type of work, will be in terminal decline by that time, which in turn will force this work further up the supply chain, or alternatively, force the vehicle down the salvage route. There will probably be fewer than 3,000 primary body repair locations in the UK by 2010 - possibly as few as 2,500. Bodyshops will increasingly look to diversify within the industry and outside. There will be no one size fits all remedy for bodyshops, only their desire to survive and prosper will unite them.
Repair costs will continue to rise, while the time allowed to undertake vehicle rectification will continue to reduce. Component, material and labour costs will increase significantly, the latter driven by constant training requirements and a shortage of available skills. The overall cost of servicing a repair will also increase due to increased consumer demands.
The number of claims will carry on reducing, although the number of 'private' jobs may help compensate for any deficiency.
While consolidation of the insurance market will persist, insurance 'brand' proliferation and promotion will accelerate through a variety of affinity schemes. Vehicle manufacturers will continue to wrestle with their control of consumers, although an amnesty with the insurance industry based on mutual needs will bring about greater co-operation between manufacturers and insurers.
There will be no silver bullet for bodyshops except that if they want to stay alive in the sector, they will need to continuously invest and keep abreast of market trends.

Lumma will transform your Cayenne
Its exterior is a Porsche and it is a Porsche from the inside too, but the Cayenne gives many the impression of too elegant a car. This sport utility vehicle is a tylook can now go to Lumma brothers from Winterlingen in Swabia, Germany. Horst (design) and Andreas (engineering) have developed a body kit for the Cayenne that is
very much in line with the age-old Porsche traditions but still boasts that it's not a vehicle driven by some ranger on duty.
The estimated price of the Porsche Cayenne S lies at about 63,000 Euros ($A105,000) That includes 250KW (340bhp) power, a top speed of 242 km/h (150 mph). But it has an appearance that does not stand out amongst the band of popular SUVs. Cheaper rivals such as
Volkswagen, BMW or Jeep fall into the same category, very much to the sorrow of many Porsche enthusiasts.
"Ex factory, this vehicle just looks too smart and neat," says Horst Lumma. That was one of the reasons why the designer, along with his brother and model construction engineer, Andreas Lumma developed the new body kit, the "CLR
400 GT." It comprises a front spoiler bumper with double headlights, a rear spoiler with diffuser, side skirts, front and rear enlargements, door panels below, a three-part front grill and the Lumma emblem. A sporty look bonnet
with venting slots, a roof-edge spoiler with a tear-off edge, headlight eyebrows and double and output exhaust valves are also part of the offer.
"For those, who feel that the Cayenne appears to be meek even after our innovations, we've got some more technical extras," Andreas Lumma declares. The so-called extras would include a lower suspension setting module and alterations in the compressor. The latter promises an overwhelming 470bhp and 640Nm from the 4.5 litre V8 engine.
The optical tuning of the Cayenne would take two to three weeks, according to Horst Lumma. The same time applies to the alteration or reconstruction of the compressor version of the S-model.
"All components in the alteration are made of high-quality compound fibre and PU RIM materials and this conforms to the requirements of the serial components", says Lumma. Durability, form stability and perfect surfaces are given high importance. This kind of quality has its price too: according to the customer's needs and optional
equipment, the body conversion costs around 22,000 Euros ($A37,000). The height-adjustable chassis and the special wheels (10x22 - 295/30-22) add
around 12,000 Euros ($A20,000) to the price. And the compressor alterations amount to a further 20,000 Euros ($33,000).
"But then you have a Cayenne, of which there are only a handful in the whole world", says Horst Lumma.

Victoria Jumpstarts too
Like NSW, Victoria also has its version of IAG's apprenticeship Jumpstart program. Delivered by RACV, potential candidates can find out all about a Jumpstart Autobody Traineeship at www.jumpstartyourcareer.com.au
The Traineeship provides Year 11 and 12 students with work as a panel beater or spray painter, plus a wage and study at TAFE while finishing Year 12.
In addition, RACV Insurance Jumpstart Scholarship for school leavers offers an 18-week pre-apprenticeship course followed by full-time placement as an apprentice with one of RACV Insurance’s preferred smash repairers.
V8 Supercar stars, Garth Tander and Will Davidson - strong supporters of Jumpstart ‘ were recently on hand to discuss Jumpstart at RACV Insurance’s stand at the Careers and Employment Expo early in May at the Melbourne Convention Centre.
An added attraction was the RACV Smash Repair Team’s double-decker coach ‘ fitted out with a mobile smash repair shop and recreation area ‘ most recently used at the Melbourne Grand Prix.
RACV manager claims and assessing, John Simpson, said the stand would provide an opportunity to learn about Jumpstart and the smash repair industry in general.
‘The RACV Insurance Jumpstart Program is part of our ongoing commitment to work closely with its auto-body repair suppliers to develop innovative training programs that attract young people to the industry,’ Simpson said.
‘This will ensure RACV customers continue to receive quality repairs and highest levels of customer service. The Jumpstart program opens a world of opportunity to participants ‘ both males and females ‘ during which they earn while they learn.’
Jumpstart presently has more than 300 participants across Australia. As well as offering assistance to the trainees, the program provides financial support to their employers.

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