WINNIPEG — Manitoba Public Insurance has served notice it plans to terminate a contract with the Automotive Trades Association of Manitoba and Manitoba Motor Dealers Association.
The existing contract expires on June 13, 2021 and allows MPI-accredited auto repair shops to repair and receive compensation for work done on customers’ vehicles after they open up a claim with MPI.
MPI says it presented the associations with 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.”
The Crown corporation says it was presented with “unprecedented compensation increases demanded by the associations,” which would end up increasing costs to ratepayers during COVID-19.
MPI’s 90-day notice to terminate the contract will still allow customers to continue having their vehicles repaired at any accredited repair facility. Beyond the contract’s termination, MPI will continue to compensate repair shops for their work using rates outlined in the current agreement.