Despite our efforts to work collaboratively, Manitoba Public Insurance (MPI) has been unable to agree to terms with the Automotive Trades Association of Manitoba and Manitoba Motor Dealers Association to sign a new compensation agreement for repairing light vehicles. The current agreement was set to be in place until April 15, 2021.
As such, MPI has determined that negotiations cannot proceed and, under the terms in the existing agreement, has provided a written 90-day notice terminating the current industry agreement with the automotive trades, including existing repair rates, effective June 13, 2021.
MPI entered into negotiations with the associations in a good faith effort to determine fair and reasonable compensation for the work performed by repair shops. After an extensive review of labour rates and other compensation for the repair industry across Canada, the Corporation proposed a compensation package with increases to labour and material rates as well as adjustments to several estimating standards that would result in additional compensation to the trade. MPI believes that the proposal was fiscally responsible for our customers.
However, should MPI agree to the unprecedented compensation increases demanded by the associations, ratepayers would be put at risk of being exposed to significant insurance rate increases during the time of COVID-19, when many Manitobans are already facing challenging economic situations.
During the 90 day notice period, customers with outstanding claims or repairs in progress will continue to have the ability to have their vehicles repaired at any accredited repair facility. MPI offers accreditation to repair shops and they are responsible for completing consistent and proper repairs for Manitobans who have opened a claim with the Corporation. MPI will continue to compensate repair shops for their work using rates outlined in the current agreement.
Furthermore, MPI is committed to working directly with repair facilities under a new agreement with a fair rate that benefits both the repair industry and Manitobans. This partnership is critical in ensuring customers have ongoing access to a network of quality accredited repair shops when they require their services.
Should customers have additional questions about their existing claim, please see MPI’s dedicated FAQ section: http://www.mpi.mb.ca/Pages/faqs-about-your-vehicle-repairs.aspx
