Regina, Saskatchewan —Tom Bissonnette, director of the Saskatchewan Association of Automotive Repairers (SAAR) and Terry Beattie, SAAR board member and owner of LB Beattie Autobody, recently met with Saskatchewan Government Insurance Management to discuss bodyshop material (BSM) rates, among other topics.
“Bottom line,” wrote Bissonnette in his weekly newsletter to SAAR members. “SGI will leave the BSM rate at $6.12 per hour.”
Regarding the paint shop material (PSM) [rates], the insurer has committed to a 6.5 percent increase for this year, but SGI “wants it to be known that they will be reviewing the PSM rate next year,” wrote Bissonnette.
He added that SGI representatives note that “they pay as much as $20 per hour more than most jurisdictions, so they cannot continue separating themselves from the pack.”
In return for its considerations, SGI is asking for SAAR’s help in doubling the number of used parts in the coming year.
“Currently SGI claims see somewhere between three percent to four percent used parts, when, nationally, the average is over seven percent.”
Bissonnette said SGI will “link up with LKQ to source used parts from other parts of the country because SGI Salvage cannot meet this new demand.”
SAAR also disclosed that it has secured an Eagle MMS account and fully intends to investigate “where BSM and PSM should be” regarding compensation.
“I, personally, do not think we have done a deep dive into what our bodyshop materials, paint shop materials and shop supplies are costing us. This is an issue that I think needs to be looked at on a national scale and I know we are in a good position to get the ball rolling,” wrote Bissonnette.
He added that SAAR maintains a good relationship with provincial insurer SGI—and they are thankful for that—but “[businesses] need to continue pushing for fair compensation for the time, effort and investment that collision centres continue to make in their businesses, especially in the rapidly changing landscape that we currently find ourselves in.”
