Media releases

VACC body repair members seek to collectively bargain with Insurance Australia Group

8 July 2024

Melbourne, 8 July – 

A group of Victorian Automotive Chamber of Commerce (VACC) body repair members in Mildura, have lodged a Collective Bargaining Class Exemption Notice with the Australian Consumer and Competition Commission (ACCC) to permit a collective bargain with Insurance Australia Group (IAG) on repair rates and conditions.


Approved collective bargaining allows the repairers to negotiate with the insurer together as a group, which competition laws would otherwise prevent. 


VACC supports the members’ action and is providing assistance to the members in this process.
The collective bargaining will focus on the terms upon which members of the group supply smash repair services, motor vehicle parts, and related administrative services to IAG or any of its related entities.

Key areas for negotiation include:

  1. The quotation methodology for repair services under the National Times and Rates (NTAR) system.
  2. Establishment of hourly shop rates applicable for each group member.
  3. Caps on markup for aftermarket parts.
  4. Charges for paint and methodology for paint volume calculation.
  5. Charges for obtaining manufacturers' recommended repair procedures.
  6. Compensation for quoting and storing vehicles that are subsequently written off.
  7. Charges for additional work related to repair services, including:
    • Freight costs.
    • Pre-scans and post-scans.
    • Administrative tasks required by IAG (e.g., arranging hire cars).
  8. Terms of repairer agreements between members and IAG or its related entities, including:
    • Agreement duration.
    • Procedures for requesting variations.
    • Termination rights.
  9. Methods for managing group members' liability when IAG requires second-hand or non-genuine parts to be sourced.

This collective bargaining initiative aims to establish fair and consistent practices across the Mildura body repair industry in its dealings with IAG, ensuring transparency and equitable treatment for all parties involved.

ENDS

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