NCIA Releases Hourly Labor Rate ‘Fair-Competition Proclamation’

For Immediate Release:
July, 2007

National Collision Industry Alliance (NCIA)
www.nationalcia.com

August 2, 2007 (Clay Center, NE) – The National Collision Industry Alliance (NCIA), today, released a proclamation on the role of labor rates as a competitive barometer. NCIA’s fair-competition proclamation reads, in part, as follows. “Hourly Labor Rates Are Incomplete Measures By Which To Arrive At Decisions To Favor, Promote, Recommend, Select Or Advocate One Shop Over Another.”

“The imposition of labor rates as a measure of competition is fundamentally flawed,” said NCIA founder Norbert Zaenglein, “and can promote an environment characterized by funny times, funny money and funny repairs as well as interfere with free-market dynamics to create biased competitive advantages and disadvantages.”

NCIA supports robust competition to ensure that claimants receive the best possible value in the entirety of the collision repair. NCIA’s fair-competition proclamation on labor rates can be downloaded from NCIA’s web site at www.nationalcia.com.

NCIA plans to release additional statements and printable posters in the coming weeks including insurers’ and repairers’ statutory obligations on the use of collision replacement parts.

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