From Body Shop Business
Massachusetts lawmakers are considering two bills - S.B. 122 and
H.B. 1043 - that would regulate the minimum labor rates for body,
paint, unibody/frame and mechanical repair shops.
The Alliance of Automotive Service Providers of Massachusetts
and Rhode Island (AASP-MA/RI) supports the legislation. The
association says that for over a decade, Massachusetts collision
shops have received the lowest labor rates in the country, despite
operating in one of the highest cost states. As of Sept. 30, 2009,
the national average hourly labor rate for repairs was $45.02,
while Massachusetts labor rates averaged $35.75 per hour. The
association noted that only one other state, Tennessee, charges
less than $40 per hour on average ($39.69).
The legislation proposes that an 11-member labor rate commission
be created consisting of: the undersecretary of Consumer Affairs
and Business Regulation as chairperson, two Senate members, two
House members, three representatives of the auto insurance industry
appointed by the Auto Insurance Bureau, and three representatives
of the collision industry appointed by the AASP.
The commission would determine appropriate minimum hourly labor
rates based on average national labor rates and other statistics.
The commission also would create qualifications to designate three
levels of shops - "A," "B" and "C" - with an application and
inspection process for each classification.
Labor rates paid would be based on shop classifications as
follows:
• Level "A" shops must be paid an amount not less than 100
percent of the indexed hourly rate in force.
• Level "B" shops must be paid an amount not less than 90
percent of the indexed hourly rate in force.
• Level "C" shops must be paid a labor rate that's fair and
reasonable.
Tell us what you think. What is your opinion regarding
this measure by the Massachusetts Legislature?
