CRA’S CALL TO ESCALATE COLLECTIVE BARGAINING
It has been more than 10 years since the body shop trade met in Pretoria with all role players to discuss the ongoing dominance of insurers in the collision repair process, along with other key issues relating to transparency in transactional repair matters.
That event, and countless other engagements since then, have yielded absolutely no meaningful progress. It remains the same old story of business as usual in South Africa’s body shop industry. Repairers are being squeezed from both sides: with rising technical requirements (ADAS, EVs, complex alloys) and stagnant or declining margins. Collectively we are experiencing an ever-increasing negative outcome on sustainable services rendered with a need for skills update on new technology which in turn requires investment for qualified competence.
Unsustainable procurement practises are a direct threat to road safety. If repairers can’t afford to calibrate sensors or hire certified techs, the consumer is the one at risk. This moves the argument from “we want more money” to “we need to protect the public.”
The apathy within the independent repair sector has, in many ways, become legendary. No one seems to care that sustainable procurement is never at the fore, while insurers continue to pursue shareholder enrichment at all costs. Dividends increase, yet little attention is paid to the long-term failure of repair centres that are steadily going out of business.
Shops are closing, while the industry quietly declines due to excessive vehicle write-offs, worsening parts availability, and a growing shortage of skilled technicians who leave the trade for better-paying opportunities elsewhere. Poor remuneration continues to drive talent away from the sector.
Give us your mandate
It is long overdue for us, as a trade body representing South Africa’s premier repair operators, to take decisive action. We now call for a clear show of support from the industry to escalate these matters to the Competition Commission.
What we need:
A formal pledge of unity from a minimum of CRA members.
A mandate to pursue an exemption to address fair procurement distribution, acknowledging change under current regulations that involve compliance standards requirements have become financial barriers to entry.
The ability to collectively negotiate a proven fair and transparent agreement on consumer rights.
The current offer being imposed on the repair trade by dominant vehicle policy holders and insurers in South Africa is commercially unsustainable.
We ask you to review our proposal and pledge your support for an application for the necessary waiver under existing policy. It is time for the trade to speak with one clear and united voice to address this ongoing commercial inequality and secure a sustainable future for repair operators.
Stand with the CRA for industry reform
Forms have been forwarded to CRA members. Thank you to those who have already completed and returned the pledge. If you haven’t ever seen this form, please check your inbox or spam folders. If you haven’t seen this form, please get in touch with us to share the same for your commitment.
This allows for collective price/term negotiations that would otherwise be restricted, giving the trade a “seat at the table” against the giants.
CRA drives awareness
Consumer awareness on social media is getting a boost from the CRA with new short-term insurance policy advice. This content is being shared on platforms like LinkedIn and other prominent channels, along with a number of helpful consumer blogs recently posted by the CRA.
There are many pitfalls to watch for when insuring your vehicle. Most vehicle owners don’t think about these issues when they insure their vehicle, only to get a rude awakening when they need to submit a claim.
Many high-value vehicle owners assume their insurance policy guarantees freedom of repair choice, genuine parts, and manufacturer-approved repair standards.
This is not always the case. Across the collision repair industry, we are seeing an increasing number of insurance agreements that direct vehicles into repair networks operating under heavily restricted cost structures.
These agreements can influence how repairs are performed, where vehicles are repaired, and how parts are sourced — sometimes without policyholders fully understanding these conditions when purchasing cover.
For owners, but not limited to only luxury, performance, and specialist vehicles, this matters.
By Steve Kessel
