Two automotive organizations are frustrated with the state of negotiations with Manitoba Public Insurance (MPI), claiming the Crown corporation is threatening body shops with sanctions if they don’t sign a new agreement.
The Manitoba Motor Dealers Association (MMDA) and the Automotive Trades Association (ATA) told Global News the insurer is using those tactics after walking away from a contract that enables direct repair.
The ATA’s Johnny Vernaus told 680 CJOB he wants the Crown corporation to come back to the table with an independent negotiator after talks broke off in March.
“We want them to stop the bullying and intimidation tactics and just demonstrate good faith for fair compensation.”
According to MPI, agreeing to the terms proposed by body shops would have resulted in substantial rate increases. The public insurer says it exercised its right to end the contract and is following the same practices as other insurers across Canada.
“This decision was not made lightly,” MPI spokesman Brian Smiley said in a statement.
“If MPI was to agree to the unprecedented compensation increases demand by the associations, Manitobans would be put at risk of being exposed to double-digit insurance rate increases during the time of COVID-19, when many Manitobans are already facing challenging economic situations.
“At this point, more than 100 repair and glass shops throughout the province have agreed to deal directly with MPI. There should be little to no impact on customers. Customers will continue to take their vehicles to the accredited repair outlet of their choice.”
The Crown corporation also said it intends to respect the outcome of the prior negotiating process.
Craig Dunn of the MMDA says his organization would also like to see MPI come back to the table with an independent negotiator, but so far there hasn’t been much movement in that direction.
“We’ve requested a meeting with the board of directors, requested a meeting with the president of MPI, and we’ve also requested a meeting with Jeff Wharton, the minister of Crown corporations, and we have been turned down by all of them,” said Dunn.
“I find it stunning.”
Dunn said the insurer posted nearly $700-million in profit over the last four years, so there should be room to figure out a deal.
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