Automotive Recyclers Association ARA

Transcription

Automotive
Recycling
™
March-April 2012
Official Publication of the Automotive Recyclers Association
• Real Hazards Require
a Real Plan of Action
• How Insurance is
Impacted by Safety –
or Lack Thereof
• Understanding OSHA
• Forklift Factor
• Airbags and HazMat
• Certified for Safety:
A Clear Advantage
Automotive
Recycling
™
March-April 2012 | Volume 32 Number 2
Co lu m n s
President’s Comments
Editor’s Notes
International
Auto Recycling
Final Thoughts
| 4
| 6
| 61
| 66
FOCUS ON
WORKPLACE SAFETY
The Big Lie 26
Warning: Reading this could make you mad.
But, calling you out on your safety program,
or lack thereof, could save a life. Literally.
By John Gilstrap
Clear Views 33
Departments
At a Glance | 7
CertaPart/CrashboxxTM
ARA Action
Insure This
Marketing 101
Lessons Learned
That’s My Opinion
Advice Counts
Sales Call
Net Profits
Green Scene
LARA
Certified News
Capitol Connection
Crossword Puzzle
Industry Calendar
Advertiser’s Index
The bottom line of a vibrant safety
program is to not only saves lives, but
also money – both clear reasons to make it a priority.
By Michelle Keadle-Taylor
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All About OSHA 38
OSHA inspections – A fact of life for automotive
recycling facilities.
By Betsy Beckwith
Robertson’s Auto Salvage,
an ARA Certified Auto Recycler
in Wareham, MA, puts safety
first for employees like
Jason Smith, seen above.
Getting a Lift 43
Forklift operation is one high risk task that
should not be left to untrained amateurs.
Compliant Pro 46
If your plan neglects airbags, you fall
short of meeting compliance mandates.
ARAPro™, a product of ARA Product Services LLC,
can help members meet federal regulations.
Safety 101 49
ARA C.A.R. certification offers an advantage to
laying the foundation for a powerful safety program.
By Sue Schauls
FEATURES
Cover Photography by
iStockphoto.com
ARA SCHOLARSHIPS
ARA Scholarship Foundation
Recipients 53
Academic Year 2011-2012.
www.facebook.com/
AutomotiveRecycling
SPOTLIGHT ON EXCELLENCE
Peacock Auto Salvage 56
Automotive Recyclers Association
9113 Church Street
Manassas, VA 20110-5456 USA
(571) 208-0428 / (888) 385-1005
Fax (571) 208-0430 / www.a-r-a.org
March-April 2012 | Automotive Recycling 3
President’s
Comments
By Randy Reitman, ARA President
PReSIDenT
Randy Reitman
Reitman Auto Parts
Melbourne, KY
[email protected]
FIRST VICe PReSIDenT
ARA is on the Ball
ere in Kentucky it hasn’t felt like winter yet – we’ve had many 40 and 50 degree
Hdays. I am still waiting for snow, but if it doesn’t come, I sure can do without it.
Snow or no snow, the first couple of months have been busy ones for ARA. CEO
Michael Wilson traveled to California to attend the Collision Industry Conference (CIC),
where he spoke on behalf of ARA regarding collision standards. ARA recently issued
several press releases directed at educating the industry, including one titled
“Automotive Recyclers Association Urges Collision Repair Stakeholders to Recognize the Genuine Value, Safety and Benefits of All Repair Part Options.” This can be
read at www.a-r-a.org, under the news tab.
It’s that time of year, once again, for the 2012 Hill Day/Mid-Year Business Development Conference. The conference will be held March 14 to 16 at the Hyatt Regency
Washington on Capitol Hill in Washington, DC. The March 15 luncheon speaker
addressing the group is Senator Rand Paul (KY-R). We have also invited Senior Staff
from the U.S. Chamber of Commerce to discuss the upcoming 2012 elections and what
the results could mean for our industry. As always, each attendee meets with their respective state’s representatives to discuss issues, including the NMVTIS program.
Most of the ARA committees meet during the business portion of the program. The
E-Commerce Committee will finalize the Standards and Codes on all the parts that we
sell. This has been a work-in-progress for the committee. This meeting will complete
the project. Hats off to Greg Beagell, Chairman, and Ginny Whelan for her invaluable
input and assistance.
It is important that as many auto recyclers as possible attend this event in order to
make the greatest impact on the Hill. Register today by visiting the Calendar page on
ARA’s Website.
The ARA Educational Foundation is proud to partner with the FIRST® Robotics
Competition, which advances and inspires young people to focus on science, technology, and engineering. The ARA membership and the automotive recycling community stepped up to this rare opportunity to advance an understanding of the automotive
recycling industry and green recycled parts to these students who will likely be the future
automotive engineers who can design a vehicle with an eye towards recycling.
Every FIRST® Robotics Competition team received a kit with a list of items they should
use to build their project (see January-February Automotive Recycling, p. 46). ARA members from more than 40 states have enrolled their company to donate quality green
recycled electric door, seat and wiper motors to FIRST® teams. This facilitates opportunities for mentoring and relationships with the next generation of engineers. ARA looks
forward to helping FIRST® teams succeed in their competition and hopes to continue
with annual participation. Call the ARA office to enroll your company.
I’m extremely proud to announce that the ARA membership has surpassed 1,200
members. Remember, numbers do count in getting things done, so let’s continue to
sign up new members by inviting your area colleagues to join.
As I have said in the past, “time flies when you’re having fun.” The good news is: you’re
the pilot!
Randy Reitman
ARA President
4 Automotive Recycling | March-April 2012
Officers
Chris Wright
Capitol Auto Parts
Thomasville, GA
[email protected]
S eCO n D V I C e P R e S I D e n T/ T R e A S U R e R
Ed MacDonald
Maritime Auto Salvage, Ltd.
Truro, NS Canada
[email protected]
S eC R e TA Ry
Ricky Young
Young’s Auto Center & Salvage/Car Crushers
Benson, NC
[email protected]
I M M e D I AT e PA S T P R e S I D e n T
Doug Reinert
Chuck’s Auto Salvage, Inc.
Douglassville, PA
[email protected]
ARA Staff & Contractors
P U B L I S H e R /C H I e F e X eC U T I V e O F F I C e R
Michael E. Wilson
[email protected]
D I R eC TO R , M e M B e R S e RV I C e S
Kelly Badillo
[email protected]
D I R eC TO R , G OV e R n M e n T A F FA I R S
Elizabeth Vermette
[email protected]
MeeTInG & eXPOSITIOn
Kim Glasscock
[email protected]
AU TO M OT I V e R eC yC L I n G e D I TO R I A L ,
A DV e RT I S I n G , D e S I G n & P RO D U C T I O n
Caryn Smith
Suko Creative Communications
[email protected]
For advertising information or to submit
article ideas or member news, e-mail
Caryn Smith at [email protected]
Or call (239) 225-6137
www.a-r-a.org
AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the
Automotive Recyclers Association, 9113 Church Street, Manassas, VA 201105456 USA, (571) 208-0428 / (888) 385-1005, Fax: (571) 208-0430, Internet:
www.a-r-a.org. Periodicals postage at Manassas, VA, and additional mailing offices. Additional member subscription are $15/year. Non-member subscriptions
are $40/year U.S. Non-U.S. mailing address subscriptions are USD$55/year surface mail or USD$85/year airmail. $20 libraries and non-profits. Copyright ©
2012 ARA. All rights reserved. Materials may not be reproduced in any form without written permission from the publisher. Statements of fact and opinion are
the responsibility of the authors alone and do not necessarily imply any opinion
on the part of the officers, directors, staff, or the members of the Automotive Recyclers Association. Postmaster: Send change of address to Automotive Recycling magazine, 9113 Church Street, Manassas, VA 20110-5456 USA.
editor’s notes
By Caryn Smith [email protected]
Get Serious About Safety
ust as I was preparing this issue on
workplace safety, I received a Salvage
Yard Google Alert that reported a very
serious automotive recycling workplace
accident, and the impact of the incident
upon the business and its workforce. With
the alert’s headline saying, “Occupational
Health and Safety Investigating,” I feel the
importance of this topic can never be
overemphasized.
Situations like this serve as a reminder
to all auto recycling businesses that safety protocol is of utmost importance. You
must operate your business with a complete safety protocol to reduce the likelihood of workplace injuries.
Empower your employees with a comprehensive safety protocol. Review it with
your staff often as if their lives depend on
it because, as we all know, it does.
J
ARA offers tools to help you design a
successful safety program. One bonus to
being a Certified Automotive Recycler
(C.A.R.) is that you receive a safety guide
as part of your certification. The guesswork is removed; implementing the recommendations lays the groundwork for
a strong foundation to your safety protocol.
ARA President Randy Reitman hopes
to double enrollment in ARA’s certification programs, namely C.A.R. and Gold
Seal, for good reason. Certification sets
you apart from facilities who might operate at sub-par standards and signals to all
that you have high environmental and
safety standards. On page 49, we provide
an overview of the recommended C.A.R.
safety guidelines.
The ARA Educational Foundation’s
ARA University (www.arauniversity.org)
just announced that seven new OSHA
safety courses were added, for a total of 22
courses that complete the OSHA safety
training module. ARA members are
encouraged to enroll in ARAU to take
advantage of this comprehensive safety
training, and more! C.A.R. and Gold Seal
members receive a discount to enroll, just
one more reason to get certified.
ARA also announced in late February
the formulation of a Safety Committee.
ARA CEO Michael Wilson outlines the
reasons that this committee is vital in his
column on page 66 – a must-read.
If I haven’t inspired you to think safety,
the article on page 26 by John Gilstrap,
Director of Safety for the Institute of
Scrap Recycling Industries, just might. He
hits all the important points, head on. ■
At a Glance
A S S O C I AT e M e M B e R
By Caryn Smith
Crashboxx™: Specializing in Intelligent Vehicle Tools
he partners at Crashboxx™, based in
Fort Collins, Colorado, have specialized knowledge in vehicle design and
safety, which provides inspiration for the
company’s offerings. Their deep technical and engineering expertise was gained
through decades of experience at GM,
Ford, and TRW Automotive.
Two of their key products can assist auto
recyclers in their daily operations.
T
CertaPart START Tool
CertaPart START Tools are designed to
help sell recycled radios at premium
prices and reduce the number of returns.
“Every recycler will need one of these.
We are pretty excited,” Peter Byrne,
President, comments. “When a recycler
extracts a radio from a vehicle, chances
are it will be locked because it is tied to
the Vehicle Identification Number (VIN).
Our CertaPart Tool removes the VIN
from the radio, and restores the part back
to its original factory default setting.”
The first of a planned series of VIN reset tools instruments, the Start GM V1.1
model, roughly the size of a shoebox, will
remove the VIN from most GM radios
(i.e., radio modules with CD, DVD, and
navigation functions) from GM Models
2006 through 2011 exclusively.
The team is working on a box, compatible with Ford vehicles.
“When an auto recycler sends a current
generation radio from a dismantled car to
a body shop, it probably will not operate
because it still retains the VIN of the original car in its internal memory,” Byrne
explains. “The typical practice for a shop,
after installing the radio, is to drive the car
to a GM dealer and have them remove
the old VIN. It can cost the shop up to
$150 for this service, so it is expensive,
time consuming, and inconvenient.”
Enter the Start GM V1.1. “After removing the radio from a crashed car, the
radio is connected to the Start Tool which
is plugged into a standard AC outlet. The
radio will light up, a message will appear
on the display, and it then performs a
cycle on the memory. Once the VIN has
been flushed from memory, the recycler
can sell the radio for a premium price, as
unlocked. It saves the body shop money
and time,” says Byrne.
Upon installation, the vehicle’s control
module communicates with the unlocked radio, it is paired to the vehicle, and
the radio assumes the new VIN and will
then be fully operational.
Byrne says, “Ultimately, this reduces the
return-ratio. A recycler using the tool in
his operations can charge a premium for
an unlocked radio. We estimate most
recyclers will break even on the tool after
selling 13 radios or so, depending on
what premium you charge, and after that
the added premium goes straight to the
bottom line.”
The GM V1.1 retails at $1,500, but ARA
members enjoy a special price of $1,299.
CrashboxxTM
How would you like to know, not only
where your drivers are, but also see, in
real-time, how they are driving?
Crashboxx has developed a black box
system that can capture your vehicle’s
location as well as how the car is being
operated. The device, which plugs into
the car’s OBD II port, can tell the owner
where the vehicle is, if it is being driven
aggressively, and even alert you in the
event of a crash.
“For fleet operators, we offer real-time
monitoring of how their vehicles are
being handled. Our web-based software
allows a drivers’ performance to be
accessed at any time. Crashboxx scores
drivers based on certain criteria, rating
their driving performance. While a GPS
gives you location, our product is a safety
and liability management tool designed
to help you manage the risk of operating
company owned fleets,” says Byrne. “We
take the GPS to the next level.”
Insurers are increasingly aware of this
technology known generally as “insurance telematics” or “usage based insurance, or UBI.” Most major carriers here
in the U.S., and internationally, are actively studying how to implement a UBI program, or have already begun doing so.
“Among insurers who have already adopted UBI, premium discounts are possible,
up to 50% in some cases,” says Byrne, “so
with a fleet of safe drivers, your savings can
really add up. While insurance telematics
is fairly novel today, in five years this technology will be accepted as the norm.”
How It Works
The auto recycler installs the device by
plugging it into the vehicle’s the vehicle’s
OBD II port, usually near the steering column. Driving styles are constantly recorded, and when the vehicle is operated
outside pre-established limits – e.g. harsh
acceleration away from traffic lights,
speed, heavy breaking, etc. – these are
recorded, and tallied into the driver’s
overall daily score. Data is sent from the
black box over the cell phone system to
the Crashboxx servers, and accessed
through easy-to-use web-based software.
A driver’s performance can be tracked
by the hour, day, week, month or year.
The cost for this monitoring is $18 per
month, per vehicle, and the device has a
one-time cost of $150 per unit.
Adding fleet tracking management,
which plots route drivers on a map,
helps to manage fuel, driver location,
etc., is an additional $18 per month per
vehicle.
For information, contact Peter Byrne,
President, Crashboxx™ (970) 367-7383 or
e-mail [email protected] or Info@crash
boxx.com, or visit certapart.com and
crashboxx.com. ■
Caryn Smith is the editor of Automotive Recycling magazine.
ARA Action
Latest News and Reports from ARA
ARA Urges West Virginia Attorney
General to Correct the Record
RA sent a formal letter of complaint to
West Virginia Attorney General Darrell
McGraw urging him to refrain from using the
derogatory and misleading term “junkyard
parts” when referring to recycled/salvaged
automobile parts. In a December 2011 press
release announcing legal action against
Liberty Mutual Insurance, the Attorney
General’s office referred to recycled/salvage
parts as “junkyard parts” and implied that recycled/salvaged parts are inferior to new OE
parts.
In the press release the Attorney General says:
“My Office will always work to insure that West
Virginians receive safe, high quality, competent,
and lawful repairs to their vehicles.” The
A
Attorney General’s derogatory and misleading
characterization of recycled/salvaged automobile parts does a disservice to consumers in West
Virginia. Restricting legitimate choices for vehicle repair does not protect West Virginia consumers. Rather, restricting access to recycled/
salvaged parts creates a monopolistic market,
inflating the cost of vehicle repair and increasing insurance premiums.
“We believe that this statement infers that salvaged, used and/or reconditioned parts are
somehow unsafe and inferior to new OE parts,”
says ARA CEO Michael E. Wilson. “This is simply false. Recycled/salvaged automobile parts
are not ‘junkyard parts’ nor are they classified
as such under West Virginia statute. We have
asked the Attorney General to clarify this statement,” said Wilson.
ARA Affirms FTC Recognition
of “Recycled” Claims
ARA Comments on Municipal Solid Waste
Characterization Report
n response to continued attacks by the collision repair industry on green recycled parts, ARA issued a press release affirming the Federal Trade Commission’s (FTC) recognition of the
term “recycled” to describe the commerce of used parts. In the
release, ARA cities the FTC’s Environmental Marketing or Green
Guides that consider consumer perceptions about products and
determined that “recycled” is acceptable in promoting used automotive parts utilization. The revisions, published in the Federal
Register on May, 1, 1998, state, with regard to the used automotive parts market, that the “unqualified use of the word ‘recycled’”
is not deceptive.
PA sought input from stakeholders on the efficacy and scope
of the Municipal Solid Waste Characterization report as part
of the nation’s broader discussion about sustainable materials
management.
ARA responded by reaffirming that automotive recyclers are
not stakeholders in this solid waste measurement initiative for the
simple reason that automotive recyclers do not handle solid
I
ARA Reviewing new Used Oil Rule
ate last year, the EPA published a proposed rule that specifies that all existing boilers subject to the tune-up requirement
would have two years (by March 2013) to demonstrate compliance. Initially, EPA had planned to require initial compliance by
March 2012. If EPA has not taken final action on the initial compliance date for tune-ups prior to the date for initial compliance,
the Agency will consider staying the effectiveness of the rule for
90 days so that EPA can complete consideration. Boilers used by
automotive recyclers to burn used oil for fuel are subject to this
tune-up requirement.
L
e
ARA answered for the record a definitive
“no” because automotive recyclers
do not discard used material,
rather it is recycled and reused.
waste. However, ARA felt compelled to respond because of language in the August 2, 2011 Federal Register notice where EPA
queries whether “automotive waste” should be included in the
MSW Characterization Report.
ARA answered for the record a definitive “no” because automotive recyclers do not discard used material, rather it is recycled and reused. ARA further stated that indeed, automotive
used material never even enters into the waste stream that EPA
is measuring in this report. ■
Insure This
By Wells Fargo
Benefits of a Written Safety Program
n light of the intrinsic hazards prevalent in the automotive dismantling and
recycling industry, it is becoming increasingly important for each and every recycler to provide a safe and healthy work
environment for all employees. It is
incumbent on every recycling firm to also
provide appropriate equipment, safeguards, personal protection, training,
and administrative support to protect
employee safety and health. Employees
should be trained to work safely and
must be required to comply with all safety rules and standards.
The ultimate purpose of such an objective is to reduce employee injuries and illnesses by identifying, analyzing, and
controlling hazards. The most effective
method of achieving this objective is a
formal written safety program. By having
a written program, it becomes much easier to investigate all accidents (and near
misses!) and to develop the necessary
measures to correct them.
By developing a written safety program,
you will be able to create and enforce
mandatory safe work practices while providing the equipment and safeguards
necessary for employees to work safely.
A written “program” can be easily communicated to your employees so they can
participate in and take an active role in
the overall health and safety of the workplace. A joint management/employee
health and safety committee can and
should be formed to provide assistance in
accident investigation, hazard analysis
and hazard communication. Such a safety and health committee should meet on
a regular basis.
The immediate goals of your safety program are to:
A. Reduce annual lost workday incident rates continually below the level of
the previous year.
B. Bring your facilities into compliance
with all federal and state occupational
safety and health regulations.
iStockphoto.com/DNY59
I
C. Implement continuing effective
health and safety programs to provide
employees with a safe and healthy workplace.
D. Actively encourage employee
involvement in these health and safety
programs.
One of the most important elements of
the workplace safety program is having
an effective safety committee to institute
and monitor the safety program. The
safety committee should be comprised of
both management representatives and
hourly employees. The safety committee
should include managers, a safety coordinator, maintenance personnel, and
hourly employees from different areas of
the operation. The objectives of the safety committee should be as follows:
• Members of the safety committee
must maintain safe work practices and a
positive attitude toward safety, to set a
good example.
• Any loss control inspections done by
insurers or state/federal safety inspectors
(OSHA) should be reviewed by the safety committee for input and recommendations. Unsafe acts and conditions
identified should be discussed and corrections made immediately so these
problems do not contribute to further
accidents and injuries.
• Safety committee members must lead
the way in informing management and/
or supervisors of workplace hazards at all
times. This should be done formally in
writing as well as immediate discussions.
• The committee should review all accident investigation reports to ensure proper corrective action is taken to prevent
recurrence of a similar accident.
• The committee should hold regular
meetings, and the committee chair
should have the following duties:
a. Set the dates for the committee
meetings;
b. Document the committee activities;
c. Review safety/loss control inspections;
d. Gather accident reports prior to
meetings;
e. Inform management of the committee activities;
f. Develop methods of selecting committee members;
g. Provide assignments to the members;
h. Keep meetings on track to ensure
problems are solved; and,
i. Make a concentrated effort to resolve/correct safety concerns raised
by fellow employees.
To ensure safe work practices, management must enforce them and make
rules that can be followed consistently
among all employees, re-train employees
if initial training appears to be ineffective,
and enforce and document a progressive
disciplinary program.
We will continue to outline the safety
program in future issues, reviewing the
various topics a safety program should
address. ■
For more information on how Wells Fargo Insurance Services can benefit your business,
contact Bill Velin at 800-328-6311, ext. 3039,
direct 952-830-3039, or by e-mail bill.velin
@wellsfargo.com.
For more information, visit https://secure.mybenergy.com/login/
processlogin.asp?username=arainsurance&password=ara.
Marketing 101
By Mike French
[email protected]
Develop Customer Contact Systems
recently called to make an
appointment with my physician for a routine checkup
required by an insurance matter. The receptionist on the
line asked me when I had last
been in. I couldn’t remember.
“Well,” she said, “I can’t find
you in the system, so it must
have been over five years” (it
was), “so you are no longer
one of his patients,” she said.
“And, unfortunately, the doctor is no longer taking new
patients at this time.”
My favorite doctor was no
longer my doctor! I was a bit
sad because I really did like
my now-former physician.
But, this incident reminded
me once more that the reason people usually get
dropped through the cracks is neglect.
It’s a well established fact that you
must continually work to stay in contact
with your customers in order to keep
their relationship with you strong and
healthy and to avoid client atrophy.
Maintaining contact does take a lot of
time and work to keep your business on
top. The good news is that you can dramatically reduce the amount of work
needed by putting your customer contacting efforts into automated “customer
personal relationship programs” (CPR).
A good system should help you organize tasks that need to be repeated on a
consistent basis. The system should
enable you to put any job or marketing
project into logical series of repeatable
steps and allow you to put recurring jobs
on automatic pilot.
Most successful companies and all
franchises put everything into systems.
Food places, banks, drug stores, clothing
stores, and even green recycled parts
businesses, put processes into systems.
The E-Myth, by Michael Gerber, a must12 Automotive Recycling | March-April 2012
iStockphoto.com/Alex Slobodkin
I
read, will give you some great ideas and
tips to speed you along in your quest to
put systems in place.
By implementing these ideas, you can
develop good CPR systems and put them
to work within your company. Begin by
thinking through every step of each contacting method you presently use.
One CPR method example might be
the sending out of thank-you notes to
customers who have made purchases
from you on large ticket items. Here’s
how you’d put it into a system.
Preparation:
1. Prepare some nice thank-you notes
and matching envelopes with your business name and address printed on them.
Leave a little space to write a short note
and to add a signature there if you wish.
2. Put some kind of method into place
to capture the names and addresses of
your customers, as well as what they have
purchased, along with the name of the
person who sold them the product, if
you want the thank you notes to come
from sales staff.
Application:
1. At the end of each day someone at
your office writes the name of each customer onto an envelope and affixes a
first class stamp.
2. The salesman’s or owner’s business
card is placed into the business card slots
on the thank-you note, and the cards are
given to the salesman or owner to sign.
3. The card is sealed and mailed.
Another CPR method is to use an email system that mails to a list, such as
Constant Contact, to send purchasing
customers an update on your product
offerings or a special discount deal.
These personalized e-mails are another
way to keep communication with your
best clients.
Whatever way you choose, in this era
of marketing, relationship building
earns customers. It’s that simple. ■
Mike French, President of Mike French &
Company, Inc., can be reached toll free at 800238-3934 or visit his company’s website at
www.MikeFrench.com.
Lessons Learned
By Ginny Whelan
[email protected]
Bring Safety Back
“OSHA Continues to Target Scrap Metal Recycling and Used Motor Vehicle
Parts Industries for Enforcement”
U.S. Department of Labor’s Occupational Safety and Health Administration
(OSHA) recently activated its Local Emphasis Programs (LEP) in some areas of
the country to help employees in the scrap metal recycling/used motor vehicle
parts industry who are being exposed to “serious safety and health hazards” on a
daily basis. According to OSHA, LEPs are enforcement strategies designed and
implemented at the regional office and or area office levels and are intended to
address hazards or industries that pose a particular risk to workers in the office’s
jurisdiction. – ARA e-Newsletter Jan. 30, 2012
“Scrap Yard Worker’s injury leads to $63,000 penalty.”
“Employers have a responsibility to ensure workers have safe working environments. Failing to train employees in safety related work practices is unacceptable,”
says Deborah Zubity, OSHA area director. The company cited had twelve citations
from failing to install rear view mirrors on both sides of the forklift, failure to document periodic inspections, failure to provide training on safe operation of the forklift, failure to provide protective equipment for the employee … (the list went on).
– Recycling Today.
onnecting safety intelligence to your
business combines best-in-class training, assessment, and improved results
through superior employee decisions.
Motivating employees to become safety
ambassadors not only helps enhance
your company’s safety environment, but
also strengthens the bond between employer and employee.
C
they find all sorts of excuses to avoid the
training. Training is also set aside because
of urgent work demands, whether it is
inventory back log of vehicles, answering
the phones, making more salvage purchases, dismantling more cars and the list
goes on.
When employees fail to complete the
training, everyone loses. An employer
Motivating employees to become safety ambassadors
helps enhance your company’s safety environment, and
strengthens the bond between employer and employee.
In 2011, I developed a safety program
for a recycling company called, “I Got
Your Back.” The introduction to the
employee training was a YouTube video,
Bringing Safety Back, a spoof of a popular
Justin Timberlake hip hop song. It made
employees have a good laugh and think
of safety in a fun way.
Employees sometimes claim that safety training is boring and unnecessary, so
who has set the time and spent the funds
for safety training does not ultimately
want to waste their employees’ time, but
help them do their best.
Team effort
The best way to increase participation
is to change the outcome desired.
Encouraging employees to participate in
a safety program is one thing, encourag-
ing them to maintain a company culture
of safety is profound. Helping them see
the bigger picture increases buy-in. You
and your employees should partner
together to ensure compliance, performance management and safety program adoption, with game-changer rewards and incentive programs for the
employees.
It starts with housekeeping and a safety hot list of employee responsibilities. For
automotive recyclers, the hot list must
include: company safety rules, first aid,
fire prevention, hazardous material handling, personal protection equipment,
back injury protection, facility electrical
safety, tools and equipment safety, material handling, equipment safety, driver
safety, and cutting and torch safety.
“Working Heroes” is a safety incentive
program that I developed to build
employee buy-in to the company safety
program. This spotlights the individual
employee when they perform their job
safely. E-post cards are used to share
employee safety tips. An employee tip
that is implemented is awarded with a
$100 Best Buy gift card (Best Buy has a
corporate gift card discount program).
Resources for Safety
The Automotive Recyclers Association
(ARA) also provides quality professional
safety training resources. ARA and Wells
Fargo Insurance Services recently published an Employee Safety Booklet. This
pocket-size quick reference guide is a
great way to provide each employee an
easy read reference in keeping safe on
the job and is a great training outline.
Copies are available from ARA.
Furthermore, upon completion of
enrollment into the ARA Certified Automotive Recycler (C.A.R.) program, participants are provided with a comprehensive safety company manual, revised
in 2011. This C.A.R. certification benefit, available in hard copy or electronic
PDF, clearly explains C.A.R., Occupational Safety and Health Administration
(OSHA), and general employee training
standards.
The ARA University(www.arauniversity.
org) offers 14 courses on safety and compliance that include: Back Safety, Decision Driving, Truck, Employee Safety
Orientation, Eye Safety, Fire Safety, First
Aid, Forklift Safety, Material Handling,
Behavioral Driving, Personal Protection
Equipment, Sexual Harassment Understanding, Preventing Slips, Trips and
Falls, and Small Spill Protection.
In 2011, ARA and Environmental
Compliance for Auto Recyclers (www.
ecarcenter.org) published a comprehensive Hybrid Vehicle Dismantling Guide.
This guide has over 400 pages of valuable
safety information for any recyclers who
are dismantling or will dismantle Hybrid
and Electric Vehicles.
The Guide is now ready for wide distribution to automotive recyclers in
either book form or on CD for $99 each,
22
plus shipping and handling. Go to www.
ecarcenter.org/HybridManualForm.pdf
or to page 17 of this issue.
Your company’s safety training is a mirror of the company and its employees.
There must be a determined and unified
effort to meet safety goals, just as you
would meet sales goals. Efforts must be
fully documented to protect the company from future liability, not for disciplinary action or promotions.
Find innovative ways to make safety
meaningful, get employee feedback, and
improve performance. Safety requires
ongoing training, self assessments, and a
lot of coaching from management.
It takes time to get your employees on
board with a safety program. Engaging
several of your most influential employees first may speed up the process. ■
Ginny Whelan, an ARA Past President, is Managing Director of the ARA Educational Foundation and founder of the ARA University, the
leading Web-based training resource in auto recycling education. Visit www.arauniversity.org.
(8 more just added!)
That’s My Opinion
By Ron Sturgeon
[email protected]
The Right Bank for you
oday, as a business owner, you have a
wide range of banks to choose from.
Doing some online research before making your selection is imperative, because
you don’t want to waste time pursuing a
bank that’s not right for you. Not only do
you need to make sure that you are pursuing a relationship with a bank that
understands your business, but also to
make certain that you’re dealing with a
bank that can meet your financial needs.
T
One Size Does not Fit All
Ron (entrepreneur): I’m a huge advocate of community banks. With big
banks, if you can fit in their box, you’re
fine. Everyone thinks, well, I have a
checking account at my Big Bank, and I
financed my car there, so I’m going to go
see them about my business loan. But,
generally speaking, the underwriting policies at big banks are not going to give you
credit for your experience; they’re not
going to give you credit for your character. You need to be at a community bank.
Greg (banker): You need to have a
bank that matches the size of your business and your business philosophy. You
simply have to have the bank that matches you. Sometimes, it’s not about scale; it’s
about skill.
You don’t need a big bank if you’re a
little widget manufacturer. Now, if you’re
an international widget manufacturer,
you might need an international bank.
But for most people that’s not the case.
Find a bank that is the right size for you.
Ron: It’s also important to know the
size of the bank, because that could have
a lot to do with its appetite for lending.
And you want to know what your individual lender’s loan authority is before
you make that decision. I used to ask people that straight out. Some people would
tell me; others would dance around it.
But when a lender tells me his loan
authority is $25,000, I know I’m meeting
with the wrong person.
Every lender has a choke point. Some
lenders can make a loan of up to
$300,000 with no problem, but when it
gets above that, they start sweating. When
it gets above $500,000, they choke. It
might be a wonderful loan, but they just
have a threshold that they can’t get past.
It doesn’t make them bad loan officers.
But it does limit your ability to grow. If
you happen to be with a loan officer like
that, and you need to go beyond his or
her choke point, you’re going to have
wasted time building a relationship only
to find your lender isn’t able to grow with
you past this point.
You also want to consider the process
for loan approval relative to loan authority. All of the banks have different ways of
handling this. Some banks layer these
amounts, so if you have a loan for
$100,000, another officer can make a
loan for $100,000 and then a third guy
can make a loan for $100,000, so together they can make a $300,000 loan, without board approval.
Other banks will give you $100,000 and
then once you go past that, it goes to a
committee, up to a million dollars. At $1
million it goes to a senior committee, and
then at $5 million it goes to the board.
The numbers may be different, but you
get the picture.
Every bank has its own procedures, so
you’ll need to learn those. Most bankers
are willing to tell you the amounts and
the processes.
Ron: Ideally, you’ll find a loan officer
who can work with you. But it’s not the
amount of the loan that’s important; it’s
the size of the debt. Say you get with an
officer and his authority is $100,000, and
you borrow that amount. Then the next
day you need to borrow $5,000. Well,
now you’re in big trouble because you
have to go to the next concurrence officer or go through the next level of
approval. So you have to know going into
it how much authority the banker has.
I can recall an instance where I owed
$992,000, and wanted to finance a forklift costing $25,000. Because I passed the
threshold of $1,000,000, a whole new
underwriting process kicked in for all my
credit, not just the forklift loan.
Greg: Those numbers have changed
drastically. At one point, I had a $2 million loan limit. But those were different
times. What I would say is that they need
to have a loan officer with at least a
$100,000 loan limit.
Ron: This is one of those cases, I guess,
where you don’t necessarily know what
the right number is, but you definitely
know when it’s a wrong number. And
$25,000 would be the wrong number
because that indicates that the loan officer is possibly brand new, and that the
bank doesn’t have a lot of confidence in
his or her ability yet.
Cheating On your Banker
Ron: Having a good bank that you can
rely on is important for every business
and businessperson. It’s important to create an ongoing, solid relationship with
that lender, but it’s also important to have
a second bank to turn to.
A second bank gives customers the
option of accessing money that the first
bank might not be willing to loan. In
today’s banking climate, it’s more important than ever to create relationships with
more than one bank.
It’s important to note that having a second bank isn’t about being able to shave
another quarter of a percentage point off
a loan rate; it’s about being able to get
what’s best for you and your business.
Getting To Yes With Your Banker features
perspectives from both the banker and
entrepreneur. ■
Since 2001, great ideas to improve your auto
recycling business have been found on Ron’s
Web site, www.autosalvageconsultant.com,
the definitive source for recyclers’ management and training needs.
Advice Counts
By Jim Counts
[email protected]
What is Cost of Goods?
ost of goods, simply stated, is what it
costs us for the goods we sell. The
Internal Revenue Service (IRS) has different rules for small and large businesses relative to what is treated as cost of
goods sold. The rule for automotive recyclers who do less than $10 million in
annual sales allow recyclers to write-off
expenses associated with processing
inventory, as you incur them.
The IRS does not allow
you to write off the cost
of the inventory in the
month you buy it
unless you sell all of it
in the same month.
iStockphoto.com/Talaj
C
everyone is required
to use an “allocation
formula” to convert the
actual cost of the vehicles
to cost of goods sold on
our profit and loss.
Under section 263A of the IRS Code,
non-manufacturing companies (which
includes auto and truck recyclers) with
sales over $10 million annually must capitalize various “inventoriable costs.”
Inventoriable costs are those associated
with purchasing (the buyer), pool fees,
towing cost, inventorying the vehicle, predismantling expenses and tagging the
parts. If your sales are more than $10 million per year all these costs must be added
to inventory and expensed using what the
IRS refers to as an “allocation formula.”
(An allocation formula is a systematic
method of transferring the previous listed costs from inventory to expenses as
you sell the inventory. Note: it says AS
YOU SELL THE INVENTORY, not when
you bought it.)
In other words, the real cost of inventory for companies that sell over $10 million is not just the cost of the part. It also
includes an allocable amount of other
costs (inventoriable costs) associated with
getting the parts on the shelf and ready
to sell. It seems the key here is the “ready
to sell” point in the process.
However, we find that a lot of Certified
Public Accountants’s like to set up auto
recyclers books and inventory write-off
procedures as if they did over $10 million,
probably because they do work for companies which exceed this threshold.
Most recyclers are not affected by section 263A because their sales are less than
$10 million per year.
Therefore, all expenses except the
actual cost of the vehicle may be written
off in the month the vehicle is purchased. This also means that pool fees
and towing are not part of the cost of
the vehicle for most recyclers, any more
than the buyer, inventory, or dismantlers payroll would be.
Remember: Everyone is required to use
an “allocation formula” to convert the
actual cost of the vehicles to cost of goods
sold on our profit and loss. This applies
at all levels of sales volume. The actual
cost of vehicles must be written off as the
parts sell, not in the month they are purchased. Also, the IRS requires that all
parts (including cores and crush) have a
cost associated with each sale.
Always check with your CPA when
developing your inventory write-off procedures or contact us for some suggestions. We actually field a lot of questions
from CPAs because of the unique way the
industry sells its product. ■
Jim Counts, Counts Consulting, provides organization and financial development for dismantlers. Contact Jim at (817) 238-9991 or visit
www.countsconsulting.com.
Sales Call
By Sam Parker
[email protected]
negotiation Guide
egotiation is your
opportunity to demonstrate your commitment
(and your company’s) to a
long-term relationship and
to maximizing value for
both parties (for those who
sell to businesses, value is
synonymous with returnon-investment).
Sales negotiation can be
a formal event (at a specific time and date) or it can be an ongoing theme at different points in the sales
process. It’s beyond price and includes
the entire value proposition.
As a professional you’re seeking a
mutually beneficial relationship with
your prospects and customers (not something that benefits one of you). Practiced
and applied, negotiation skills can
increase the level of trust and credibility
you and your company have with your
prospects and customers.
The negotiation guide below provides
you and your team with a quick overview
for your next potential negotiation with
a prospect or customer. Use what fits for
your particular sales world and toss what
doesn’t.
And remember … your success depends more on your pre-negotiation
preparation than on the negotiation
moment(s) itself.
Nothing fancy, just the fundamentals ...
done well.
your negotiation Guide
Before negotiating begins:
• Avoid negotiating unless you’ve had
an opportunity to fully present your value
proposition.
• Understand the objections raised up
to this point in the sales process and identify what your prospect’s or customer’s
hot buttons (main points of interest) may
be based on these objections.
• Be prepared to illustrate how your
ery times, follow-up schedules, service period, etc.).
• Try to identify agreement
on small items to help develop positive momentum –
summarize these agreements
periodically.
• Take notes to demonstrate your commitment to
the negotiation and to help
you find opportunities to
summarize the smaller agreements verbally with the prospect/customer.
iStockphoto.com/mattjeacock
n
offering will be used by them and quantify the value they’ll get.
• Be certain you’re working with a person who has the authority to negotiate
and make decisions.
• Adopt the right negotiating attitude.
• Be confident in the value your product or service will return.
• Be prepared to be patient (which can
lead to higher trust).
• Be prepared to work toward a solution that works for everyone (really).
• Know in advance at what point the
agreement is no longer beneficial to you
and your company and be prepared to
walk away.
During negotiation:
• Use open-ended questions to confirm your understanding of their needs.
• State your understanding of how the
prospect or customer will benefit from
your product or service – confirm this is
accurate by asking.
• Be prepared for tactical responses
from prospects and customers – whether
it’s the flinch following your price quote
or silence – don’t react and instead
respond with more questions.
• Listen.
• Don’t rush to fill pauses – be comfortable with moments of silence.
• Be prepared to change the value
proposition to support price concessions
– support your price integrity by adjusting the overall value (e.g., change deliv-
After the negotiation:
If agreement is reached ...
• Summarize verbally and/or in writing
the agreement for all appropriate parties.
• Thank the customer/prospect for
their time and reinforce the purchase
decision (without cliche).
• For your next negotiation, review the
points that seemed to help move the
negotiation process forward – study
them, know them, use them.
If no agreement is reached…
• Sincerely thank the prospect/customer for their time and commitment to
the process.
• Avoid appearing annoyed or disappointed.
• Give the prospect/customer an “out”
or an opening for them to come back to
you and your company in the future
(have this statement prepared).
• For your next negotiation, review the
points that seemed to prevent the negotiation process from moving forward –
study them, know them, and act accordingly.
Now go sell something. ■
Sam Parker is a co-founder of JustSell.com –
the Web’s resource for sales leaders. He is the
author of 212° The Extra Degree (little efforts,
big results), Smile & Move (be positive, take action), and SalesTough (8 key fundamentals).
He can be reached at (804) 762-4500, ext. 303.
net Profits
By Mari Smith [email protected]
12 Tenets of Relationship Marketing effectiveness
elationship marketing refers to everything you do to make your prospective and current customers aware of your
products and services, position your business in their minds as the obvious choice,
and help you to build lifelong, profitable
relationships with them.
Whereas the traditional marketing
approach is transactional (point of sale),
relationship marketing is relational.
While old-style marketing mostly focuses
on sales transactions, the new relationship
marketing focuses on working hand-inhand with your prospects and customers
to co-create a more meaningful, personalized, and lasting experience.
With the vast range of social media tools
at our disposal, it’s easier now more than
ever to shift your focus to relational marketing. Your customers and prospects
iStockphoto.com/Arda Guldogan
R
Argument for Relationship Marketing
o most Automotive Recyclers, this idea of relational marketing may sound a little bit like a
lot of work for not much pay off, and a lot like paying someone to play on Facebook and Twitter all day for fun. Well, you may be correct if you look at this transactionally (I want a sale from
every posting). But if you are interested in gaining a customer for life after a sale has occurred,
read on. Wikipedia says:
Relationship marketing differs from other forms of marketing in that it recognizes the longterm value of customer relationships and extends communication beyond intrusive advertising
and sales promotional messages. It pays to remember:
• The cost of acquisition occurs only at the beginning of a relationship, so the longer the relationship, the lower the amortized cost.
• Account maintenance costs decline as a percentage of total costs (or as a percentage of
revenue).
• Long-term customers tend to be less inclined to switch, and also tend to be less price sensitive. This can result in stable unit sales volume and increases in dollar-sales volume.
• Long-term customers may initiate free word of mouth promotions and referrals.
• Long-term customers are more likely to purchase ancillary products and high margin supplemental products.
• Customers that stay with you tend to be satisfied with the relationship and are less likely to
switch to competitors, making it difficult for competitors to enter the market or gain market
share.
• Regular customers tend to be less expensive to service because they are familiar with the
process, require less “education,” and are consistent in their order placement.
• Increased customer retention and loyalty makes the employees’ jobs easier and more satisfying. In turn, happy employees feed back into better customer satisfaction in a virtuous circle.
T
want to know that you’re listening, that
they are important to you, and that you
are striving to improve your brand, products, and services as a result of their feedback. You can’t afford to be a one-way
broadcast channel. Embrace the conversation or, as my friend Brian Solis says,
“engage or die”. He means, it’s those
companies who engage with their community that will thrive in the long run.
Relationship Marketing
Best Practices
There are certain hallmarks of companies that have successfully integrated
relationship marketing. Listed below are
12 best practices, formed as a quick selfassessment. Check which of the 12 questions apply to your company; the more
yes’s you have, the better!
My company:
❏ ... conducts regular polls and surveys
(surveymonkey.com) of our customer
database to ensure we understand the
currents challenges and needs of our
market.
❏ ... strives to integrate customer feedback as much as possible in order to
improve our products and services.
❏ ... understands the power of social
media and has active profiles set up on all
the popular social sites such as Facebook,
Twitter, LinkedIn, and Google+.
❏ ... has effective listening (www.
dreamgrow.com/48-free-social-mediamonitoring-tools/) and monitoring
(www.socialmedia.biz/2011/01/12/top20-social-media-monitoring-vendors-forbusiness/) systems in place.
❏ ... has a corporate social media policy (http://socialmediatoday.com/davefleet/151761/57-social-media-policyexamples-and-resources) in place that
lets staff know what can and cannot be
said, what actions can and cannot be
taken, and how to handle any negative
bio
situation.
❏ ... generates warm leads from all
you can’t afford to be a one-way broadcast channel.
embrace the conversation or, as my friend
Brian Solis says, “engage or die.”
online and offline marketing efforts on
a regular basis.
❏ ... utilizes a reliable customer relationship management strategy (www.
socialmediaexaminer.com/what-is-socialcrm/).
❏ ... conducts regular training sessions
(www.marketingprofs.com/marketing/
online-seminars) for all members of staff
on proper customer relations and social
media best practices.
❏ ...stays on the cutting edge by evolving, adapting and integrating new technologies.
❏ ...embraces high-tech but always
maintains high-touch by reaching out to
our customers, prospects, vendors and
partners.
❏ ...has a very
high customer satisfaction rate.
❏ ...consistently
goes out of our way to let our customers
know how much we value them.
By studying and integrating each of
these 12 best practices, you’ll go a long
way towards improving your success
through relationship marketing. Your
customers will not only like you, but
they’ll love you!
Companies that do really well with
their relationship marketing efforts
include Zappos, Starbucks, Virgin
America, Southwest Airlines, and Ford.
Also, check out Morton’s Steakhouse as
Peter Shankman (www.shankman.com)
shared on The Greatest
Customer Service Story
Ever Told, starring Morton’s
Steakhouse response to a
tweet. It’s a fun story about
going above and beyond for your customers. ■
Mari Smith is a passionate social media leader,
specializing in relationship marketing and Facebook mastery. She is author of The New Relationship Marketing and coauthor of Facebook
Marketing: An Hour A Day. She travels the
United States and internationally to deliver keynotes and
lead training events. Fast Company describes Mari as “a
veritable engine of personal branding, a relationship marketing whiz and the Pied Piper of the Online World.” Dun &
Bradstreet Credibility named Mari one of the Top Ten Most
Influential Small Business People on Twitter. Connect with
Mari at www.marismith.com.
Green Scene
By Michael Schmidt and Mike James
[email protected]
Top Ten OSHA Violations
very year, the National Safety Council
(NSC) and Occupational Safety and
Health Administration (OSHA) partner
to reveal OSHA’s top 10 most commonly cited violations. The list tends to feature
the same violations year to year. In 2011,
fall protection, scaffolding, and HazCom
topped the list. The 2011 list is as follows,
with the number of violations:
1. Fall Protection (7,139)
2. Scaffolding (7,069)
3. Hazard Communication (6,538)
4. Respiratory Protection (3,944)
5. Lockout/Tagout (3,639)
6. Electrical – wiring methods (3,584)
7. Powered Industrial Trucks (3,432)
8. Ladders (3,244)
9. Electrical – general requirements
(2,863)
10. Machine Guarding (2,728)
Improving safety measures greatly
reduces your chances of getting an OSHA
violation, especially hazard communication, respiratory protection, lockout/
tagout, general electrical requirement,
and machine guarding, all safety concerns that need to be addressed in auto
salvage yards. Here are general guidelines
for complying with OSHA regulations in
respect to these violations.
e
Hazard Communication
Hazard Communication, called HazCom, ensures that employers and
employees know about work hazards and
how to protect themselves so that the incidence of illness and injuries due to hazardous chemicals is reduced. To comply,
your facility must: identify and list hazardous chemicals in the yard; obtain
Material Safety Data Sheets (MSDSs) and
labels for each hazardous chemical;
implement a written HazCom program,
including labeling, MSDSs, employee
training, and methods the employer will
use to inform employees of the hazards
of non-routine tasks, such as spills; and
train employees on chemical hazards.
MSDSs for oil, grease, antifreeze, brake
fluid, battery acid, gasoline, and even sodium azide in air bag detonators are found
on the Internet free of charge. Compile
MSDSs in a binder, where employees can
easily get to it.
Respiratory Protections
Emissions from the torching and cutting of metals are hazardous to the
human respiratory system. Employees
that work in close proximity to the emission sources are exposed to heavy metals,
such as hexavalent chromium, lead, cadmium, and aluminum. In most automotive salvage yards a silicon half mask with
disposable respirator cartridges would
provide adequate protection. OSHA
requires that the employer provide respiratory protection to his/her employees.
Respirator cartridges should be used
according to the manufacturer’s recommendations. Employees wearing respiratory protection must undergo a medical
evaluation, training, and fit test.
Lockout/Tagout
The objective of having a lockout/
tagout is to prevent accidental startup of
machines or equipment while a contractor or employee services the machine.
For instance, when a crusher is shut down
for repairs an authorized employee or
group of employees will lock out the disconnect box before any maintenance
starts. Tagout is only permitted when the
disconnect box is not lockable. The tag
must clearly communicate, “DANGER!
DO NOT OPERATE!” A successful
Lockout/Tagout Program must have a
written Energy Control Program and
Energy Control Procedures for each
piece of equipment. Employees must also
be trained on the facility’s Energy Control
Program and Procedures.
electrical General Requirements
The most common shock-related injury
is an electrical burn, which usually occurs
when an employee touches electrical
wiring or equipment that is improperly
maintained. Look for tripped circuit
breakers or blown fuses; worn or frayed
insulation around wires or connections;
an excessive amount of cords plugged
into a circuit; a conductor that is too small
to carry the current; and open junction
boxes. Routine inspections and training
of employees will help reduce injuries
and OSHA violations.
Machine Guarding
Crushed fingers or hands, amputations,
burns, or blindness are just some of the
injuries that can occur when machine
guards are not in place. Machine guards
reduce the chances of injury to you and
your employees. Machine guarding
should be provided to protect the operator and other employees from rotating
parts, flying chips, and sparks. Some of
the machines that require machine
guarding are guillotine cutters, shears,
alligator shears, power presses, and power
saws. Machine guards should be designed
and constructed to prevent the operator
from having any part of his body in the
danger zone during machine operations.
Implementing a safety program may
seem like an impossible task. Start with
one of these ten violations and work into
other safety areas over time to reduce
injuries and OSHA violations, which can
range from $700 to $5,000 per day if an
OSHA inspector catches you without a
Safety Program. Violations can do serious
damage to the overall cost of running an
automotive salvage yard. A well implemented Safety Program can boost the
morale of your employees, and ultimately boost productivity along with it. ■
With over 25 years experience in pollution prevention, Mike James is President of James Environmental Management, Inc., specializing in
environmental compliance assurance and currently serving over 1,200 facilities in the U.S.
LARA
Tammy Arroyo Makes Her Mark in Auto Recycling
ammy Arroyo, President of A
& E Salvage and Recycling,
based in Indiana, has a remarkable story. It’s one of beating the
odds, taking chances and succeeding through perseverance
and hard work.
T
well. “I guess I should also say that
my husband was my knowledge
base. I learned the most as we
worked the late nights and weekends as we separated what I had
bought during the week. It’s funny
to say my husband was the brains
and I was brawn, in the beginning,
but that is the way it was.”
A Family with History
When Tammy married her junior high school sweetheart at the
Making Wise Decisions
age of 14, owning and running a
The Arroyos started A & E
successful business with her husSalvage and Recycling by renting
band was probably the furthest
12 acres of land, located just south
thing from her mind.
of Sullivan, Indiana. In the beginThere was nothing I was not willing ning, silent partners helped them
“John was 16 and I was 14 years
to do to build this company.
old when we got married,” said
purchase a Ford F550 rollback,
Tammy. “I know this sounds
which is still in use today. Tammy
impossible, but it’s true. We had our first
and Recycling. Tammy worked for the
remembers some of those early days of
daughter two weeks after I turned 15
county government for 12 years and
getting established.
and we have been together for 40 years.
John worked for a company that handled
“At first we had very little capital and
We have three beautiful, intelligent,
auto recycling for 14 years.
had to use it wisely,” she said. “Most of it
wonderful daughters. All three daughWith a change in the political climate
was earmarked to purchase scrap. Howters graduated from high school and two
and a new administration, Tammy was let
ever, in order to do so, we needed a way
decided to continue their education and
go from her job. Some people would walto weigh it so we purchased a 5’ x 5’ floor
graduated from Rose-Hulman Institute
low in self-pity and despair at this news,
scale. Just imagine buying one to two ton
of Technology, Indiana University, and
but Tammy and her husband decided to
truck loads of scrap using a 5’ x 5’ sq. ft.
University of Florida.
make a bold decision to start A & E
floor scale. After doing this day in and
“They married three great men and
Salvage and Recycling in 2006, with very
day out, the word efficiency begins to
gave John and I the sons we never had,”
little money. John continued to work fullbecome something very foremost in
Tammy continued. “Our grandchildren
time at his job while Tammy got down to
your mind.
are the greatest ever; a definite extension
work on establishing the business.
“The property had a very large pole
of all of us rolled up and split into six lit“I actually knew very little about ferrous
barn on it and for the most part, we were
tle people, who by the way, rule. There
and non-ferrous metals,” confessed
happy with it – until it rained. The roof
aren’t any words that could possibly
Tammy. “I had learned a bit just by liswas more like a sieve than a roof. We
describe how John and I feel and how
tening to my husband talk with his clients
walked around in ankle deep water
proud and thankful to God we are for
as he went about his work. We laugh
every time it rained. Safety was a huge
our children and their families. Now, all
about his cell phone being a permanent
concern and we had to get inventive to
three daughters have a role in the comextension of his ear. He worked practikeep the electrical cords out of the
pany and this makes us thankful and
cally 24 hours a day, seven days a week.
water.”
grateful.”
Weekends, holidays and even funerals,
he was always on call for his boss, for his
Sleeves Rolled Up, Hard Work Applied
ending Up in the Business
customers, for the road crews and the
Much of Tammy’s learning experience
Not only did the Arroyos beat the statruck drivers he supervised.
was hands-on and trial and error.
tistics of teen pregnancy and divorce, and
“I also learned as we did daily business
“There was nothing I was not willing to
enjoyed the benefits of a thriving family
and sometimes I learned the hard way by
do to build this company,” she said. “I
life, they had also established successful
losing money. I was fortunate that I had
popped radiators, removed condenser
careers prior to opening A & E Salvage
employees who knew the business, as
cores, wiring harnesses and converters. I
LARA Continued
Tammy Arroyo (left) and Tom Klauer, Schnitzer Steel (center) went head
to head in a bidding war for Dale Bevell’s heirloom ADRA ring. All three
were applauded for their generosity that ultimately benefitted the ARA
Educational Foundation.
ammy Arroyo caught our eye two years ago when she attended
her first LARA meeting at the Lexington, KY, convention, asking relevant questions about the
auto recycling business during the session. But this year, she emerged as an outstanding
LARA member at ARA’s Award Dinner at the ARA Convention in October. In a beautiful bidding war
with Tom Klauer, Schnitzer Steel, she ended up the proud owner of Gary Bevell’s ADRA ring.
Tom Klauer was actually awarded the ring because he outbid her. However, he turned to Tammy and
handed her the ring. She had just underbid him by one hundred dollars. She accepted the ring and
they both pledged the money they had each bid to the ARA Educational Foundation.
After the dinner, Gary came over, with son Dale, to greet and congratulate Tammy. She said it
was an amazing experience.
“I don’t have the words to describe meeting Gary and Dale and how happy he was to have raised
that much for the foundation meant to me,” said Tammy. “The ring is a piece of a man’s history and I
definitely don’t feel like I earned it as he did. Yet, I proudly wear it and feel honored to have it the way
it came about. The money went to education, which is one thing our family considers important and
all agree on.”
The rare ring, one of only three ever given out, was awarded to Gary Bevell in the ‘80s as a reward for recruiting the most ADRA members for the year.
T
cleaned aluminum wheels and even
poked gas tanks with our 10 foot gas tank
poker and fluid collection device.
“I lived and breathed the salvage
yard. My husband was still working at his
full time job and I ran the salvage yard
during the day. However, after hours the
work really began. We cleaned and
upgraded material every day until late in
the evenings and then all day Sundays
as well.”
Tammy says she has always known
more about cars than most people, particularly women, but even with all of her
previous knowledge she found out how
much she really still had to learn.
I never had to know much about the
actual parts of cars or their scrap value,”
she said. “Sure, back in the day I knew
what a radiator was, what it did, where it
was on most vehicles, how to fill it, and
have even had to replace a few, but never
had I ever had to pay attention to what
they were made of, what the value of that
material was, or even that there was such
a thing as ‘clean’ and ‘dirty.’ However, I
got very good very quickly at determining
these things.
“The same is true of the various kinds
of wire.” Tammy continues. “Sure I
knew what copper wire was or at least I
thought I did until we opened this business. That is when I got an education
about the various types, grades and
prices of copper wire. Even after all this
time I am still learning about our nonferrous products.”
In those early days, it was sometimes
difficult for Tammy to remember that
she was actually the President of A & E
Salvage and Recycling. She put in long
days, drove loaders, cleaned wire, and did
whatever job needed doing. By the end
of the day she was really tired and really
dirty.
“Back then you knew what you had
done that day and exactly why you were
so tired,” she said. “There was so much
that needed to be done and much of it
was physical labor. Even though it was
tough, I was always excited to get up the
next morning and do it all over again. I
just kept in mind all of the individuals
who started their companies in their
garages and those who did not have very
glamorous beginnings, but really built
something of which they could be
proud.”
Low-tech Security Lessons
The security they had around their
property at that time was, according to
Tammy, as low-tech as it could get. Their
fence consisted of the junk vehicles they
purchased, stacked end to end. Tammy
says this is where she started to learn how
hard it is to deter thieves.
“We laugh about our old fence now
considering how nice the fence is at our
new facility, but in those days we did the
best we could with what we had,” she
said. “We weren’t always successful at foil-
ing the bad guys but it is very
stand how anyone can take a livdifficult to stop someone when
ing breathing creature and dishe or she is determined to get
card it as if it were just trash.”
what they want regardless of the
risk.”
Challenge of All Challenges
After a year of business and a
Tammy has had other challittle more money in the bank,
lenges as she worked to set up
the Arroyos decided to purthe business, such as staying on
chase property rather than
top of new laws, enhancing
rent. They found a five-acre parsecurity for their business, comcel that included a small house,
peting with other salvage yards
close to their original site.
that don’t have salvage licenses
According to Tammy, this was
or reporting to NMVTIS. Howan important move for the
ever, one of her biggest chalbusiness.
lenges came when her husPartners in business and life, John and Tammy Arroyo, owners of A & E Salvage
“I feel that purchasing this and Recycling, having some fun at the ARA Annual Convention in Charlotte, band quit his full-time job to
property and moving our busi- North Carolina.
dedicate all his time and attenness was the best decision I had
tion to A & E Salvage and
made to date for the company,” she said.
Recycling.
Moving our business
“Of course, we went in with more knowl“When my husband came on board
was the best decision
edge than when we had when we first
full-time he wanted to change everyopened, but wow, did we still have a lot
thing,” said Tammy. “I worked so hard to
I had made to date
to learn. The only thing we have ever
have a no-nonsense business and I felt this
for the company.
done that was more difficult while being
benefited A & E as a company. I felt like
so rewarding was create our family.”
John wanted to take everything away I
ly we would get to where we are today
had worked so hard to create and change
Hard Work Paying Off
and it would be built, almost literally, of
it into something else. He did, but not for
Today, A & E Salvage and Recycling has
blood, sweat and tears.”
the reasons I thought.
grown to 18 employees and recently
For Tammy, one of the worst things
“I think I was being selfish on my part.
opened a second location in December.
about establishing the business is the cruEven to this day, we still knock heads on
“I enjoyed every moment, every scrape,
elty to animals she has witnessed.
business issues. So, we brought in our
cut and bruise because I knew I was
“The worst part of this business, for me,
daughters to help with the business and
building something that I could be
is learning how some people treat anito balance us out. All of us working
proud of in the future,” Tammy said.
mals,” she said. “We would pop the trunk
together will bring greatness to A & E
“I knew we would look back on those
on a car and find corpses of dead aniSalvage and Recycling. John and I want to
late nights, those days wading in the
mals. People would leave boxes of pupleave our children a company that they
water and those sleepless nights of wonpies or kittens in junk cars. They would
can be as proud of as we are of them!” ■
dering if our fence was enough to deter
abandon dogs and cats on the property
Michelle Keadle-Taylor is a freelance writer based in Northmost thieves. I knew then that eventualafter hours. Honestly, I will never underern Virginia.
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WORKPLACE
SAFETY
The
Big Lie
Warning: Reading this could make you mad.
But, calling you out on your safety program,
or lack thereof, could save a life. Literally.
By John Gilstrap
T
All the contents of this issue
of Automotive Recycling are for
general information purposes only.
Such contents do not constitute
legal advice. Readers should
consult counsel for specific advice
concerning ultimate safety
standards and compliance.
Our dismal numbers make us the 7th
deadliest industry in America, at precisely the time when regulators around
the country are jacking up fines and
hiring new regulators. Six-figure OSHA
fines are becoming commonplace, and
seven-figure fines are not unheard of.
As the director of safety for the
Institute of Scrap Recycling Industries,
I hear from members all the time who
are apoplectic over the brazenness of
newly-empowered and freshly-enabled
OSHA compliance officers who arrive
unannounced and spend days or even
weeks picking through operating areas,
writing up every discrepancy they find.
The general consensus of those who
are audited by OSHA is that they have
been victimized by overzealous bureaucrats.
I counter that those compliance officers are merely doing their jobs by
catching business managers in the act
of not doing theirs. If this moment in
iStockphoto.com: Background: kryczka; Yield: DNY59; Ambulance: sturti
he recycling industry hurts and kills a disproportionately high number
of people compared to other industries. According to the U.S. Bureau
of Labor Statistics, in 2010, workers in the “refuse and recycling”
industry were killed on the job at the rate of 29.8 fatalities per 100,000
workers. That’s compared to a rate of only 18 fatalities per 100,000 for
police officers. Given the nature of the work we do, it seems inconceivable to me that our jobs are 33% more dangerous than that of a cop.
Focus On
WORKPLACE
SAFETY
history is, in fact, the perfect
storm of regulations and litigation, then the storm is the direct
result of a rain dance we’ve performed for forty-two years.
Yes, forty-two years. That’s how
long OSHA regulations have
been around, and they have
seen precious little alteration in
that time. For the vast majority
of workers toiling today, the regulations have been in effect for every moment of
their professional lives. To claim ignorance of a body
of law that has been around for so long is disingenuous, at best. At worst, it’s a prime component of a
multi-faceted delusion regarding worker safety that I
call “The Big Lie”.
The truth is that we really do know about safety
regulations. We just don’t care. And our fatality statistics prove it.
iStockphoto.com/sturti
The truth is that
we really do know
about safety
regulations.
We just don’t care.
To be clear: I’m not suggesting that we don’t care about
our employees, or that we wish
them harm – in 30 years in the
safety business, I’ve never run
into a situation where business
owners didn’t prefer a healthy
workforce over and injured
one – I’m just suggesting that
we don’t care enough to do
enough to protect them.
“Safety is Number One.”
We’ve all seen the sign that proclaims safety to be
the top priority. It’s on walls, on advertising boards,
and sometimes even stitched into workers’ uniforms.
Safety. Is. Number. One.
Bullpucky.
Quit lying. Safety is not number one. Production is
number one. Money, customers, units processed and
quality are all higher priorities in most businesses.
We say that safety’s first because we know that’s what
we’re supposed to say. People expect it. But we don’t
believe it in our hearts.
Think about it. If you’re like most managers I
know, you don’t tolerate tardiness or absenteeism in
an employee, but you’re more than willing to forgive
a safety infraction. You’ll accept “oops, I forgot” as an
excuse for not wearing protective equipment or not
locking out a machine, but you’d never accept that
as an excuse for a quality violation.
The simple fact of the matter is that safety rarely
has an equal place at the management table. Every
day, we actively manage for productivity and quality
and profit, but safety is relegated to a tool box talk
and a meeting every other Thursday. Certainly, safety
is not first.
In the interest of honesty, every business owner
needs to make a choice: He either has to stop perpetuating the The Big Lie and take that sign down,
or he needs to figure out a way to turn the sign into
a statement of truth. The second choice is preferred.
And it’s easier to do than you think.
Managing For Safety is Like
Managing for Anything Else
We need to stop thinking of safety as an asterisk
on a larger mission of profitability. Safety and productivity are close siblings, not distant cousins. We
need to stop having separate production meetings
and safety meetings, and start having safe-production meetings. We need to reorient how we think
about the management challenge that is safety.
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WORKPLACE
SAFETY
If someone
does get hurt, the
consequence to
the injured employee’s
manager will be ...
Nothing.
When we manage for anything – quality, productivity,
whatever – we intuitively break
the management challenge into
four steps:
1. Establish the goal.
2. Communicate the goal to
others.
3. Put a plan in place to
achieve the goal.
4. Evaluate the plan as we go
along, and make corrections as necessary.
In the space available here, we’ll only be able to get
through Step One – but Step One’s a doozy.
iStockphoto.com/Kir
by Hamilton
Establish the Goal
Nine times out of ten, the safety management
model stumbles on the first step out of the gate,
when we first attempt to establish a goal for safety.
For a goal to be capable of evaluation, it must be stated as a positive integer. We don’t tell our management team, “we want to make more money this year
than last year.” That’s far too soft. Instead, we
establish solid goals of making X dollars by processing
Y units at a margin of Z. Once the goals are established, managers are held accountable for achieving
them.
When it comes to safety, though, establishing goals
becomes more difficult. Absent a good measure of
safety, companies often resort to something like,
“zero accidents.” Let’s think this through.
Is zero really our goal, or in our heart of hearts,
would we really be happy if we had fewer injuries this
year than last year? Be honest now.
If you had ten lost time accidents last year, wouldn’t you be
doing the happy dance if you
only had five this year? Sure you
would. The problem is that we
can’t go on the record saying,
“our safety goal for 2012 is to
injure five employees.” Talk
about your mixed messages.
Besides, most safety goals
aren’t really goals, anyway; at
least not in the same sense as production goals,
which are the ones we make sure everyone understands. We tell our management team that their
goal – consistent with that big sign on the wall – that
there’s zero tolerance for anyone getting hurt. And
if someone does get hurt, the consequence to the
injured employee’s manager will be ...
Nothing.
There’s no clearer evidence of The Big Lie than
the disparity that exists between the consequences to
a manager when he fails to meet production goals
versus when he fumbles his safety goals. Management
incentives are typically all about production, with
little or no consideration given to safety.
The Myth of the Careless Employee
More times than not, “worker carelessness” is
listed on workers compensation forms as the primary
cause of accidents. When this is the case, the typical
corrective action listed is, “instructed the worker to
be more careful.” Among safety professionals, this is
considered less-than-optimum accident investigation.
We accept this as truth, though: workers are careless. If that is indeed the case, then why not hire
more careful employees and be done with it? In fact,
if worker carelessness is, in fact, a primary cause of
accidents, why don’t we solve the problem permanently by firing the person who does the hiring? We
don’t do that because it’s a preposterous solution to
a preposterous allegation.
By and large, in my experience, workers aren’t
hurt when they’re being careless; they’re hurt when
they’re doing what they were told to do.
Consistent with other elements of The Big Lie,
employers tacitly encourage “careless” behavior by
rewarding the resultant perceived productivity. We
allow workers to take short cuts, to drive too fast, to
not wear seat belts, to operate equipment whose
guards are missing or broken, and to toil in unsafe
conditions often because those conditions and practices are so commonplace as to become invisible.
dalgo
manuel Hi
happened on your watch,
and you’re responsible,
just as you’re responsible
for the good stuff that
happens on your watch.
After someone is hurt,
concentrate on finding
the string of failures
that led to the injury,
and worry less about
whose fault it was.
Beginning with a presumption of carelessness ruins morale,
and guarantees that
similar injuries will happen in
the future. Investigations need to be about fact-finding. Leave the name-calling for the school yard.
A successful safety program – the long journey
toward transforming The Big Lie to a statement of
fact – begins when you establish real goals, and you
hold managers accountable to them.
“Zero accidents” is a counterproductive goal, if
iStockphot
o.com/Em
In the hundreds of accidents I have investigated in
my career, the vast majority of injured workers sustained their injuries while performing tasks exactly
the way they’d always been performed. If they didn’t
lock out the machine it’s because they never lock out
the machine. It’s only after the bottom fell out of
their luck jar and they had the audacity to get hurt
that their bosses start calling them names: Careless.
Stupid. Inattentive.
Here’s a self-test: If you’re the boss, and you don’t
require workers to shut down a piece of equipment
whose guard is missing or damaged, if you don’t discipline workers for driving a fork truck without a
seatbelt, or if you don’t continually seek out potential
hazards and fix them on the spot, then you’re the
one being careless.
And if, as a result of your inattentiveness or carelessness, someone gets hurt, don’t dishonor everyone
by calling it an “accident.” Call it what it is: a management failure. If it’s your job to move units out the
door, then it’s also your job to send your employees
home whole and healthy. I’m not suggesting necessarily that the injury was your fault, but merely that it
Focus On
WORKPLACE
SAFETY
The idea is to
raise the profile of
safety to the
same level as
productivity.
only because it doesn’t measure
anything positive; it merely
measures the absence of a negative. Even if you achieve the
goal, you won’t know why. That’s
not management. That’s rolling
the dice.
So, what are good safety goals?
Only you can decide what’s most
relevant to your operations, but
the key requirements are that
the goals be a) measurable, and b) reasonably
achievable. It’s also important that the goals focus on
managers and supervisors, not on line employees.
(Line employees only get away with what their bosses
let them get away with.)
Some suggested goals: Achieve an average score of
90% or better on weekly audits conducted by other
managers (i.e., cross-inspections); conduct X safety
training sessions per week; ensure an average turnaround on safety work orders of not more than X
days.
The idea is to raise the profile of safety to the same
level as productivity.
At the Institute of Scrap
Recycling Industries, ISRI Safety
provides a wide range of safety
outreach services to our members. We go to their facilities
and train their employees onsite. We help managers untangle
the knot that is the safety management challenge. These services are offered free of charge,
but with one stipulation. They
must sign the ISRI Safety Pledge, which states in
part, “Our mission as a company is to serve customers
and produce high-quality product safely. If we cannot
do it safely, then we will not do it at all.”
Unless a company is willing to embrace the notion
that no dollar in revenue – no million dollars in revenue – is worth a drop of blood, no amount of training, counseling or engineering will be able to make
the workplace safe. ■
John Gilstrap has been a safety engineer for 30 years, and is the director of
safety for the Institute of Scrap Recycling Industries in Washington, DC. He is
also the New York Times bestselling author of nine thrillers. His books have
been translated into over 20 languages. Contact John at [email protected].
Focus On
WORKPLACE
SAFETY
Clear
The bottom line of a
vibrant safety program is
to not only saves lives, but
also money – both clear
reasons to make it a priority.
ews
Vi
Views
A
iStockphoto.com/Anthony Seebaran
ccording to Bill Velin, Wells Fargo Insurance Services, it is extremely
critical that auto recyclers have a good safety plan in place. Over the
years, he has seen many cases where the auto recyclers who had a
good solid safety plan put more money to their bottom line,
instead of to paying workers compensation penalties.
“If you want to save money on insurance and
workers compensation it is critical to preach proactive safety measures,” said Velin. “The only solid
measuring stick that an insurance company has to
give you a competitive quote is recent valued loss
returns for all lines of coverage. They want to see
what claims you have had and their severity.”
In general, Velin says that the claims for the auto
recycling industry tend to be more severe than, for
example, employees in an office, by virtue of the
nature of the business.
“Anytime you have exposure to heavy machinery
such as crushers, dismantling operations, forklifts
and such, you have a better chance for serious
Focus On
WORKPLACE
SAFETY
injuries,” said Velin. “You may only have had two
claims in the last five years but both of those
involved fatalities. That will cause you to have a
higher rate of insurance.”
the experience modification. It’s weighted by 70%
against the recycler who is filing the claim. They
are penalized, according to the severity and frequency of claims.
How Does It All Work?
Your experience modification is compiled by
your state. All worker compensation claims are
required to be submitted to the state and the state
compares your claims with other auto recyclers’
claims to come up with your experience modification rate. All recyclers start out with manual rates
and if your experience modification is better than
average you get discounts in the rate you pay. If
your experience modification is worse than average, you get a surcharge added to your bill.
If 1.00 is the average and your experience modification rate is under 1.00, for example, .80, that
is considered a good modification rate and you
would receive a 20% discount. On the other hand,
if you have an experience modification rate of
1.30, you would have to pay a 30% surcharge.
Once you have claims that end up in a Lost
Time Injury, a weighted formula is used to calculate
Practical Advice
With all of this in mind, it proves that it is always
better to be proactive in safety. While putting
proactive safety measures in place will not eliminate
claims altogether, it will reduce them.
When shopping around for insurance, three tips
for getting the best price include that you:
• Must be able to show your computerized claims
– if the risk is good, you have great loss experience
(which means very little worker compensation
claims) but are unable to produce computerized
claims then the insurance company will not be able
to offer good prices for their quotes.
• Be proactive up front, in your hiring processes.
• Understand your workers compensation rates.
Jon Walsh works with safety in mind at
Robertson’s Auto Salvage, an ARA Certified
Auto Recycler in Wareham, MA.
Making a Safety Plan
Now that you have an understanding of how safety impacts insurance, let’s get down to crafting an
insurance-minded safety plan. Following
these tips will provide favorable circumstances with underwriters.
1) Have a good, formal, written
OSHA compliant safety program.
“Even though it is imperative that
auto recyclers have a good safety plan
in place, and many do, there is still a
lot of room for improvement,” said
Velin. “Most ARA members who have
the C.A.R. and Gold Seal certifications
are already differentiated from your
average or below average recycler and
have formal safety plans in place. The
key, however, is to make sure it
becomes part of the culture of the
business rather than just a plan.”
All ARA members that take insurance through Wells Fargo receive, at
no cost, a formal, written OSHA compliant safety program. According to
Velin, that automatically saves you at
least $2,500 dollars that you would
pay to hire an independent consultant to do so.
The safety program provides a
roadmap on how to have proven initiatives in place.
2) Once you have the safety program, the next
step is the installation and implementation of the
program. It’s making sure that you are doing what
the roadmap is instructing you to do.
“We understand that it takes time and manpower
to set up safety committees and if the auto recycler
wants help doing that, we can provide someone to
come in and help install the safety program,” said
Velin. “The Wells Fargo representative will come
in, for a fee, and actively set up committees of five
to six people (depending on size of organization
and employee availability). The first thing they will
do is to start looking over claims and find the
potential problem areas. Once the safety program
is up and rolling, the Wells Fargo representative
bows out, leaving the recycler to manage the established program.
Velin says not only will your workplace be a safer
place, but it will help your bottom line.
“Once you have a safety plan that is established,
not only will it keep your employees safer, but by
putting these measures in place, it keeps losses
down, price of insurance goes down and your bot-
tom line goes up,” said Velin. “So much money is
currently spent by companies on their property
and casualty insurance. Having a good, effective
safety plan reduces the number of claims and that
savings automatically drops to your bottom line. It
will save you money on property and casualty insurance policies.”
3) Avoid many workers compensation claims by
being proactive in your interviewing and hiring
process.
“You’d be surprised at how many no-brainers,
lack of common sense accidents and claims I’ve
seen,” said Velin, “such as someone lighting a cigarette while someone is taking gasoline out of a
car and it causes an explosion. Or, newer employees lifting transmissions without using the proper
equipment that their employers provide for them,
and they hurt the soft tissue in their back, resulting
in a back injury. Now the employer has to pay for
workers compensation and medical bills, and also
hire someone else to work while they are absent.”
Legally, you cannot ask a prospective employee
if he or she has filed for workers compensation
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WORKPLACE
SAFETY
before, but you can ask questions that will give you
clues. For example, someone applies for a job and
during the interview you ask him if he will have a
problem lifting 70 pounds. He says he can lift 70
pounds. Then, the first time he tries to lift a 70pound alternator and he can’t and hurts himself,
he files for workers compensation. You can find
out that he had a pre-existing condition and he
could be fired.
“It’s important that you follow the same sound
hiring and interviewing process that any large
company would do,” said Velin. “You should have
a good interview process that includes checking
references, conducting background checks, and
having potential employees get physicals, and take
drug tests. Doing so, could save you thousands of
dollars.”
4) Try to get as many employees to buy health
insurance as you can.
“We have a horrible case of the ‘invincible’ in
this country,” said Velin. “They are a group of
single males under thirty that decline health care
coverage offered by the company. They want the
extra money in their pocket. Then, during softball
season they hurt themselves playing softball and
tear their ACL. On Monday, they come into the
office acting as if everything is ok, despite being in
horrible pain. Then they
fall down at work, grab
their knee, and put in a
workers compensation
claim.
“How would the owner
even have an inkling that
this was bogus? It’s impossible for the owner to
watch every move that an
employee makes. The sad
thing is that this happens
all the time and business
owners are paying for it.”
Another client of Velin’s
saw a drastic difference in
the amount of money he
was shelling out for workers
compensation when it
became clear that he was
being played.
“A few years ago I had a
client that was a large manufacturer and he came to
me with a 2.25 worker com-
pensation rate which meant that he had to pay a
225% surcharge on his worker compensation
claims,” said Velin. “I spent the entire summer in
my free time graphing his losses and workers compensation claims and it became very apparent that
over a ten-year period, twice a year there were
spikes in the numbers of claims. During the
months of May and June and then again in
September and October there was an extraordinary amount of claims.
“The first thing we did is look at the demographics of his company and he said he had hired 1,500
single males – none of which took health insurance. He offered it to them but they declined coverage. I asked him if he was paying his employees
to take time off during softball season and hunting
and fishing seasons and he said no, of course not.
I told him, oh yes, you are.
“The bottom line was that employees were getting sports injuries or wanting time off to go
fishing or hunting so they pretended to get hurt at
work. Not only did they get their medical bills
paid, they got time off, with pay. The owner was
shocked and said he never would have believed it
if I hadn’t graphed it all out for him to see.
“He went to his employees and didn’t drop the
hammer, but let his employees know he knew
what they were doing. He
offered that they could have
time off without pay to go fishing or hunting, but they did
not want that. Suddenly there
were less injuries and his experience modification rate was
cut in half to 1.40 over the
next several years.”
Insurance companies do not
base their rates on what happened in just one year. After
you put a safety program in
place they will look at how
well it is working by examining your claims to see if it has
resulted in reduced loss experience. They will look at a
period of three or four years
and see if your safety measures have actually worked
and reduced your worker
compensation claims.
In addition to putting the
above tips in place Velin
offers a few more ideas to
help you save some money
and create a safer workplace.
They are:
1) Change the mentality of
the company about safety.
During the safety meetings,
explain to all employees how
worker compensation claims
affect your business and
affect things that really matter
to employees, like raises.
2) Try to eliminate the stupid things that cause claims.
You can’t eliminate true accidents, but you can eliminate others that are
caused by carelessness. For example, do not allow
employees in the dismantling area to work too
many hours in a week. The chances for an
accident are greater and you will pay more for
those exposed to greater risk, especially when it
comes to health care.
3) Don’t wait until it’s too late and the claim is in.
Get employees involved by
asking for witnesses to the
accident. You want to get the
employees on board to keep
an eye out for false claims. If
they understand the impact it
has on the business and on
them, they will be more aware
of what is going on in the
workplace. Peer pressure does
wonders in helping to reduce
the number of bogus claims.
Following these tips should
show you the merits of putting
a safety program in place, if
you don’t already have one. If you do have one,
but it is not working very well, or you still have a
claim frequency problem and want more information, you can contact Bill Velin at Wells Fargo
Insurance Services for more specific advice. He
can be contacted at [email protected] or
by calling 800-328-6311, ext. 3039. ■
Peer pressure
does wonders in
helping to
reduce the number
of bogus claims.
Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.
Focus On
WORKPLACE
SAFETY
All About
OSHA
U
OSHA inspections – A fact of life for automotive recycling facilities.
By Betsy Beckwith
nder the Occupational Safety and Health (OSH) Act of 1970,
Congress created the Occupational Safety and Health Administration (OSHA) to “assure safe and healthful working conditions for
working men and women by setting and enforcing standards and
by providing training, outreach, education and assistance.” The
OSH Act covers employers and their employees either directly
through federal OSHA or through one of the 27 OSHA-approved
state programs. Four of these 27 however only apply to public
service employees (CT, IL, NJ, and NY). OSHA uses its 10 regional
offices and 90 local area offices to carry out its mandate.
What Does OSHA Look Like?
OSHA describes itself as a relatively small agency;
with its state partners the program has approximately 2,200 inspectors responsible for the health
and safety of 130 million workers, employed at
more than 8 million worksites around the nation
– which translates to about one compliance officer
for every 59,000 workers. Even with this ratio,
OSHA has reached into many businesses, including
those in the automotive recycling industry.
In addition to an on-the-ground inspection
force, OSHA also provides phone helplines and e-
mail access to those who need assistance or who
wish to file a complaint. Just last year, more than
200,000 individuals utilized these services – including nearly 43,000 callers who selected the option
to file a complaint about a workplace hazard, and
more than 32,000 inquiries made through the
OSHA e-correspondence system.
What OSHA Requires from Automotive
Recycling Facilities – Meeting its Standards
OSHA standards are rules that describe the
methods employers are legally required to follow
to protect their workers from hazards. Before
OSHA can issue a standard, it must go through a
very extensive and lengthy process that includes
substantial public engagement, notice and comment. The agency must show that a significant risk
to workers exists and that there are feasible measures employers can take to protect their workers.
OSHA has developed over 100 specific standards
applicable to general industry (including automotive recycling facilities) for the following categories.
Standards
• Walking-Working Surfaces
• Exit Route & Emergency Planning
• Occupational Health and Environmental
Control
• Hazardous Materials
• Personal Protective Equipment
• Environmental
• Medical and First Aid
• Fire Protection
• Compressed Gas and Compressed Air
Equipment
• Materials Handling and Storage
• Machinery and Machine Guarding
• Hand & Portable Powered Tools &
Other Hand Held Equipment
• Welding, Cutting and Brazing
• Electrical
As noted in other articles in this issue, OSHA’s
top 10 most commonly cited violations of standards
in 2011 include:
1. 1926.451 – Scaffolding
2. 1926.501 – Fall Protection
3. 1910.1200 – Hazard Communication
4. 1910.134 – Respiratory Protection
5. 1910.147 – Lockout/Tagout
6. 1910.305 – Electrical, Wiring Methods
7. 1910.178 – Powered Industrial Trucks
8. 1926.1053 – Ladders
9. 1910.303 – Electrical, General
Requirements
10. 1910.212 – Machine Guarding
Of particular interest are the following 10 most
frequent violations for 5015 facilities:
• 19100305 16 8 14122
Wiring methods, components, and
equipment for general use.
• 19040029 13 5 3300 Forms.
• 19101200 12 8 3930
Hazard Communication.
• 19100178 10 7 3375
Powered industrial trucks.
• 19100106 8 3 12465
Flammable and combustible liquids.
• 19100215 8 5 5455
Abrasive wheel machinery.
• 19100157 5 5 5144
Portable fire extinguishers.
• 19100023 3 3 2715
Guarding floor and wall openings and holes.
• 19100219 3 2 1800
Mechanical power-transmission apparatus.
• 19100037 2 2 1584
Maintenance, safeguards, and operational
features for exit routes
Training/Grants/Education
To support safe operations at businesses, OSHA
offers training courses and educational programs
to help broaden worker and employer knowledge
of the recognition, avoidance, and prevention of
safety and health hazards in their workplaces and
to successfully meet these standards. OSHA also
offers training and educational materials that help
businesses train their workers and comply with the
OSH Act.
Through the Outreach Training Program and
the OTI Education Center Program, OSHA makes
available a selection of occupational safety and
health classes designed for workers and employers.
In addition to courses and materials, OSHA also
offers grants to nonprofit organizations to develop
training materials and/or deliver training and
education for workers and employers.
Enforcement
OSHA believes its enforcement efforts are vital
to ensuring workplace safety and health. Reportedly, enforcers target the most hazardous workplaces
and the employers that have the highest injury
and illness rates.
OSHA’s targeted inspection efforts focuses on
establishments with high injury and illness rates and
both Local and National Emphasis Programs (LEPs
and NEPs). The emphasis programs focus on
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SAFETY
industries with high injury, illness, or fatality rates,
or on hazards such as lead, silica, or the risk of
amputations. The Enhanced Enforcement
Program is designed as a supplement to these programs to focus enforcement efforts on recalcitrant
employers.
Inspections
According to OSHA’s Integrated Management
Information System (IMIS), Federal and State
OSHA programs conduct approximately 80,00090,000 inspections each year, broken down into
total, programmed, and unprogrammed protocols.
Programmed inspections are often triggered due
to high hazards in the workplace, recorded injuries
and fatalities as well as high Days Away, Restrictions
and Transfers (DART) rates.
In FY 2011 there were 40,215 federal inspections
and 52,056 state inspections. The automotive recycling industry accounts for a very small percentage
of these interventions as is noted below.
For example, in FY 2010, OSHA conducted
40,993 total inspections. This number includes
164 significant and egregious (instance-byinstance) enforcement actions, each resulting in a
total proposed monetary penalty of more than
Safety and Health Management Resources For
Automotive Recycling Businesses
ARA University (www.arauniversity.org) – Safety, Health
and Compliance Training Courses
• Eye Safety
• Forklift Safety
• Fire Safety-Construction
• Hazard Communication
• Personal Protective Equipment
• Slips, Trips and Falls
Safety Booklet – ARA together with Wells Fargo updated its
Employee Safety Booklet in late 2011. This booklet is a quick
reference guide for safe operations.
CAR Manual – Safety Standards
ARA Facility Managers and Employees Guide to
Environmental and Occupational Safety and Health
Inspections (published in 2000)
OSHA Enforcement Inspections Online Portal –
www.osha.gov/pls/imis/industry.html
$100,000. In addition, OSHA conducted 24,759
programmed inspections. These inspections indicate that OSHA devoted more resources to proactively target the industries and employers that
experienced the greatest number of workplace
injuries and illnesses.
OSHA also conducted 16,234 unprogrammed
inspections, including employee complaints, accidents, and referrals. Currently there are NEPs
focusing on the hazards of combustible dust,
amputations, lead, crystalline silica, and trenching/excavations. In addition, OSHA has more
than 140 Regional/Local Emphasis programs
around the country.
Local Emphasis Programs (LEPs) for
Automotive Recycling Industry
OSHA relies primarily on its LEPs and NEPs,
and the Site Specific Targeting Program for the
vast majority of its enforcement work. Of particular
interest to automotive facilities are LEPs, which
are enforcement strategies designed and implemented at the regional office and/or area office
levels. These programs are intended to address
hazards or industries that pose a particular risk to
workers in the office’s jurisdiction. Oftentimes,
these LEPs will be accompanied by outreach
intended to make employers in the area aware of
the program as well as the hazards that the programs are designed to reduce or eliminate.
OSHA reported that, based on a nationwide
review of inspection histories that demonstrated
that many significant hazards have been identified
at establishments in the 5015 SIC and 432140
NAICS codes, LEPs were activated in Philadelphia’s
Region III and in Syracuse, New York’s Region II
to reduce the hazards and exposures at automotive
recycling facilities.
Some individual auto recyclers in those areas
have recently been notified of this program via letter – the contents of which encourage the recyclers
to follow OSHA guidelines and be prepared for
possible on-site inspections. Indeed some of the
automotive recyclers’ facilities in both NY and PA
have just been subject to the on-site inspections.
Specifically, according to OSHA, the scrap metal
being processed by the workers may contain alloys
or can be coated with toxic substances. Workers
cutting this scrap metal are exposed to metal
fumes and gases as well as hazards from mercury,
ultraviolet radiation, noise and heat. Also, OSHA
states that the workers in these industries are
exposed to a variety of safety
hazards produced by heavy
equipment operations, powered industrial trucks, cranes
and moving machine parts.
establishments primarily engaged in dismantling motor
vehicles for the purpose of
selling parts.
• Using SIC code 5015, 56
inspections occurred in 2011
in the following 21 states: AL,
CA, DE, FL, GA, IL, IN, KY,
MD, MN, NC, NJ, NV, NY,
OH, OR, PA, SC, VA, WA and
WI.
• 61 inspections occurred in
2010 in 24 states including
AL, AZ, CA, GA, IA, IL, KY,
MA, MI, MN, NC, NE, NJ,
NM, NV, NY, OK, OR, PA, SD, VA, WA, WI and WV.
OSHA’s most comprehensive inspection program is the Site-Specific Targeting Plan (SST),
which targets workplaces that have 40 or more
employees and have reported the highest injury/
illness rates. The targeting lists are updated every
year to reflect the most recent data. Virtually all
SST inspections are comprehensive visits in which
OSHA’s targets
workplaces that have
reported the
highest injury/
illness rates.
Violations
In FY 2010, OSHA found
96,742 violations of OSHA’s
standards and regulations in
the nation’s workplaces, a
15.3% increase since FY 2006.
The total number of serious
and repeat violations issued
increased by 22.1% and 8.1%,
respectively, over the past five years. The total
number of willful violations issued significantly
increased by 217.1% since FY 2006 and increased
by 278.8% since FY 2009.
Snapshot of OSHA Action on SIC code 5015/
NAICS Code 423140 Facilities – Defined as scrap
metal processing industry and motor vehicle parts
– used; merchant wholesalers which also includes
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SAFETY
the agency’s compliance officers examine all
aspects of the workplace’s operations as well as the
effectiveness of its safety and health efforts.
OSHA Cooperative Programs
OSHA offers the following cooperative programs
under which businesses, labor groups, and other
organizations can work cooperatively with the
Agency to help prevent fatalities, injuries, and illnesses in the workplace.
On-site consultation and SHARP – OSHA’s Onsite Consultation Program offers free and confidential advice to small and medium-sized businesses in all states across the country, with priority
given to high-hazard worksites. In FY 2010, responding to requests from small employers looking to
create or improve their safety and health management systems, OSHA’s On-site Consultation Program conducted over 30,000 visits to small business
worksites covering over 1.5 million workers across
the nation.
On-site Consultation services are separate from
enforcement and do not result in penalties or cita-
tions. Consultants from state agencies or universities work with employers to identify workplace hazards, provide advice on compliance with OSHA
standards, and assist in establishing safety and
health management systems.
The On-site Consultation Program’s Safety and
Health Achievement Recognition Program
(SHARP) recognizes small employers who operate
an exemplary safety and health management system. Upon receiving SHARP recognition, OSHA
exempts your worksite from OSHA programmed
inspections during the period that your SHARP
certification is valid.
Alliance – OSHA works with the public to promote safe and secure workplaces and to enhance
worker voice in the workplace. OSHA joins with
groups committed to worker safety and health,
including unions, consulates, trade or professional
organizations, faith- and community-based organizations, businesses, and educational institutions, to
leverage resources and expertise to help ensure
safe and healthy workplaces and worker rights. ■
Betsy Beckwith is a consultant with ARA’s Government Affairs Department.
Focus On
WORKPLACE
SAFETY
Getting a
Lift
A
Forklift operation is
one high risk task that
should not be left to
untrained amateurs.
ccording to data analysis conducted by the
Occupational Safety and Health Administration
(OSHA), the single largest cause of forklift accidents that result in fatalities is vehicle tip-overs.
The second highest number of fatalities is
caused by accidents where employees were
crushed between a vehicle and a surface. In
both cases, proper training could have helped
to avoid those accidents in the first place.
“The dilemma is that without knowing the limitations of the equipment we are operating, we
don’t know the dangers and we can cause harm to
ourselves and others around us,” said Joe Watson
of ABC Auto Parts. “There are still too many in our
industry that operate forklifts without having the
proper training. I know because that’s how I
learned. It was a long time ago but I didn’t get
proper OSHA training. I got hands-on training,
not book training. So, I learned the dangers of
operating forklifts through my own mistakes.”
Watson feels that training is necessary because it
provides the baseline for safety for everyone.
“Let’s be honest. Most regulation exists because
of stupid or ignorant people. Regulation attempts
to keep us safe, from ourselves and others in the
work place. I mean think about it, if you are going
to have someone untrained operate a machine
that has a good chance, if used improperly, to kill
someone, that is either stupid or you just don’t
know any better,” said Watson. “But, that’s the
same with everything. Do we really need to drive
just 55 mph? Most of the time probably not, but
it’s the few that drive way too fast and way too reckless, that make it necessary to constantly remind us
to drive slower.”
iStockphoto.com/ugur bariskan
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WORKPLACE
SAFETY
Online Help Class
With this in mind, OSHA was created over 40 years
ago to set regulations and standards and provide
training that would ensure a safe workplace.
“Under the Occupational Safety and Health (OSH)
Act, employers are responsible for providing a safe
and healthful workplace,” said Ginny Whelan,
Managing Director, ARA Educational Foundation.
The ARA University (www.arauniversity.org) is assisting with that process by offering training that will
help ARA members to meet OSHA requirements
and even more importantly, create a safe workplace
for their employees.”
ARAU offers two forklift training courses. This is
online training and certification that is required by
OSHA of all operators of forklifts (rough terrain
vehicle forklift) and the requirements include certification renewal every three years.
Real Hands-On Training
Watson, who has been driving a forklift since he
was a teen working at his Dad’s yard, has taught forklift training for many years. He uses a combination of
the OSHA classroom training and practical handson training to ensure that all of his drivers are competent and safe drivers.
“If you are operating a forklift you should be
OSHA-trained, whether it’s in the auto salvage industry or in your own backyard,” said Watson. “It doesn’t
only protect you, but those around you. The way I
have taught forklift training was to begin by admitting
the mistakes I had made myself.
“I start off asking who in the room had ever put
too much weight on the forklift. Everyone usually
looks around at each other, then I put my hand up
and say, ‘I have.’ Other hands follow. Then I would
ask another mistake and put my hand up.”
Watson uses the OSHA Guidelines in the classroom
setting first to acquire what he calls “dead knowl-
edge;” then takes students out to the forklifts
to gain what he calls “living knowledge.”
“In past classes, I took students out to the
forklifts and got them to purposefully go
against the guidelines until we reached the
point of just before they would fail so they
could see what that would feel like,” he said.
“I wanted to create a fail-safe plan in a safe
environment that would allow the driver to
learn what they would do in the event that
the machinery did start to tip or if they had
loaded too much, what that would feel like
and what they should do to correct it.
“Through this training, employees got to
learn what it would feel like to have too heavy of a
load and try to make a turn or if they had too high
of a load how that changes the stability and how that
feels, and believe me when it starts to fail, you feel it.”
Avoiding Accidents
Watson feels the biggest problems encountered
are operating a forklift with an unsecured load
where an operator will try to lift things and they fall
off; trying to lift too heavy of a load; and having a
load too high when turning.
He offers three warnings: First of all, make sure
you secure your load as per OSHA guidelines. Next,
make sure correct weights are lifted depending on
the type of forklift you are operating; this is where
classroom application comes in.
The instructor should review how to find the correct weights for each type of forklift. Practical experience and training also come into play here, because
you can feel when you have loaded the forklift too
heavy or high. For example, if you have loaded your
pickup truck too much, it will drag the ground.
To address the problem of turning with too high
of a load, he says it’s a marrying of the two, classroom
and practical training to know when you are operating a forklift in an unsafe manner, which again
depends on type of forklift you are operating.
Watson is pleased that he personally has never had
accidents where people got hurt. However, he has
had accidents that caused damage.
“Of the accidents you hear the most often, you
hear of people dropping a vehicle while operating a
forklift,” he said. “It’s easy to cause damage to your
vehicle or building that way. I have dropped a car in
an area where I wasn’t supposed to because I was
going along and had it too high. It changed the center of gravity and bam, I dropped it. Most of the
time, accidents like those occur because we’re under
time constraints and pressure. We’re in a hurry.”
Plan, Train, and Maintain
Watson says that one way to avoid these type accidents is to put some time into planning and training.
“Giving time to planning the layout of your yard,
time management, and proper training is essential
because it helps to avoid accidents,” he said. “In our
yard forklift drivers get the right of way because their
view is often obstructed and they are big. Training is
a constant reminder. If you don’t know it’s dangerous
then you’ll do it; if you know it’s dangerous you’re
less likely to try it or do it. Taking simple measures
like these will help reduce potential safety problems.”
Watson says the maintenance of the forklifts is also
important, for example, tracking how often the
fluids are changed or the lines are checked.
“My belief is that there is a lot of machinery that is
not maintained properly, so the training should highlight the dangers of unsafe machinery,” said Watson.
“As you become more aware of the dangers you
become more concerned with what could happen.”
Proper safety training helps employees to become
aware of the potential danger in their surroundings.
Watson says that even though you may get by doing
things in an unsafe way, it’s not worth the risk.
“Today OSHA has guidelines that state you can’t have
a person under the car while it’s lifted on a forklift,
but in the old days we used to cut the exhaust off a car
while it was lifted up – today we would have been in
clear violation of OSHA regulations,” said Watson.
“Did we have any problems back then with doing
that? No, but since then we’ve become aware of the
potential dangers in doing that and put measures in
place that would prevent loss of life or injury to our
workers, customers, or property.
“You can cut and cut and cut trying to save money
but in the long run, you eventually have a horrible
accident that ends up costing you more in workers
compensation, paying someone else to work in their
place, and holds you personally liable.
If you don’t think about safety as extremely important, you might unintentionally create an unsafe
workplace, putting your business at risk. OSHA
guidelines can help create a fail-safe environment
that reduces injuries and accidents – which in the
end saves you lives and money.” ■
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WORKPLACE
SAFETY
Compliant
Pro
A
If your plan neglects airbags,
you fall short of meeting
compliance mandates.
ARAPro™, a product of
ARA Product Services LLC,
can help members meet
federal regulations.
iStockphoto.com/Stockphoto4u
RA members take pride in the quality of their work,
reputation, and the parts they sell. They generally go
above and beyond what is required for certifications,
such as Certified Automotive Recycler (C.A.R.) or
Gold Seal, and comply with federal regulation on
the environment, HazMat, and other areas.
Forward thinking companies should make
airbag protocol a mandatory part of safety training, because it is a viable profit center – and it is
part of compliance law.
ARAPro™ Airbag Protocol, a product of ARA Product Services
LLC, is the automotive recycling industry standard for extraction,
handling, and inspecting non-deployed OEM airbags. This is a voluntary standard for recyclers selling airbags and it offers auto
recyclers a one-stop shop for all of their airbag needs, including,
easy-to-use, 24-hour, web-based training, testing, and certification for
technicians handling both airbags and hazardous materials.
ARAPro™ is available through www.AirbagResources.com, and is
very affordable for ARA members, at only $99 per year, per yard.
State affiliated chapter members can join for a slightly higher rate of
$129 per year, per yard.
All employers
shipping airbags in
commerce are
required to train and
test their
employees.
“The purpose of ARAPro™ is
to ensure best practices are
employed when processing these
parts,” said Peter Byrne, who
manages the ARAPro™ Program
for ARA Product Services LLC,
with nearly 20 years experience
in the airbag industry, including
several years with TRW, the
largest U.S. airbag maker. “The
emphasis is on safety for the
employees and making sure the
airbags are not changed as they are handled in the
recycling process. Airbags are regulated materials. All
employers shipping airbags in commerce are required
to train and test their employees. The Department of
Transportation is actively enforcing these regulations.
ARAPro™ offers thorough, practical, cost-effective
training.”
Because it is web-based, no travel is required and
you do not have to pay to bring a trainer in to your
yard. There is no limit to the number of employees
or part-time employees who may be trained under
the system. All you need is access to the Web. The
Web site offers 24 hour, seven days per week, access
to both airbag and HazMat training and testing for
employees.
How ARAPro™ Works
There are two parts to the program: Airbag Protocol
and Hazardous Materials training and testing (required to ship airbags in commerce). ARAPro™ is an
elective industry standard option for auto recyclers.
The hazardous materials training and testing, however, is not voluntary for shipping airbag modules in
commerce. If you ship airbag modules, as the majority
of auto recyclers do, a federal requirement is imposed
on an employer to train and test employees in hazardous material regulations. These modules are regulated and designated hazardous materials by the
Department of Transportation.
ARAPro™ offers the only formal recycled airbag
extraction, handling, and inspection results database
in the industry. Once an employee has read all the
material on airbags, hazardous materials, they can
take the test and must earn a score of 100% in order
to obtain the certification. An employee can re-take
the test as many times as needed.
“The employer can have all of his or her employees
take the training and certification, or a few,” said
Byrne. “They are all covered in the $99 annual membership fee. They may re-take the tests as often as
needed to get the required 100%. If they have to re-
take the test, even more than
once, it won’t be time wasted
because they are learning more
each time and thus, ensuring a
safer work environment.”
Personalized certificates can
be created for employees who
pass the airbag and hazmat tests.
Certification, in the case of hazardous materials, is valid for
three years while airbag certification is good for one year.
The original vision for ARAPro™ was to make OE
recycled airbags more marketable to insurance companies for insurance paid collision repairs. “However,”
said Byrne, “the official policy of insurance companies
is to only use new airbags. Regardless of the insurer’s
position, ARAPro™ helps recyclers standardize their
airbag related operations, track inspection records,
and ensure employees are airbag trained, certified,
and safe.”
Marketing Airbags
“The recycled airbag market is substantial,” says
Byrne. “Our Web site www.AirbagResources.com has
an airbag meter that estimates the number of
inquiries made about airbags. We reckon that about
once every 19 seconds, someone makes an electronic
inquiry about recycled airbags!”
Recyclers who take and pass the airbag and HazMat
training (including the required security awareness
training) are able to use the ARAPro™ brand to further differentiate themselves from others selling
airbags. They can refer their body shop customers to
ARAPro™ airbag part search, a special search engine
that pulls up only those with ARAPro™ certification.
This narrows the search for a potential buyer while
increasing the odds of a sale for the recycler.
“I acknowledge that compliance with the law
places time and cost restraints on a recycler and that
it seems like they are being punished for obeying
the law while there are people re-selling airbags and
shipping them via the U.S. Postal Service,” says
Byrne.
™
Benefits of ARAPro
While recyclers follow the regulations on HazMat
materials, other non-recyclers are selling airbags online. Seemingly skirting the rules, some send airbags
through the U.S. mail, failing to declare them as hazardous materials, and using non-approved packaging;
all of which are clear violations of federal regulations.
“It’s my hope that the people enforcing the federal
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WORKPLACE
SAFETY
law on hazardous materials will
turn their attention away from
the law-abiding and focus on
the non-law abiding offenders,”
Byrne comments.
The ARAPro™ Airbag Protocol program offers these features
to participating recyclers:
• Web-based training for yard
employees in airbag basics,
inspection and safety.
• Multiple choice tests for
employees after they complete the self paced
training.
• Inspection procedure which guides the technician
on the checks to make on each airbag and automatically stores the results in a relational database.
• Certificate of Conformance listing the checks
performed on the airbag to be included with the
part and kept on file.
• Hazardous Materials training.
• Personalized certificates for both Airbag and
Hazardous Materials training for employees who
successfully pass the tests.
The ARAPro™
brand provides
body shop and
consumer’s assurance.
• ARAPro™ part search engine,
in collaboration with CarPart.com, filters search results
listing only airbags from
ARAPro™ member recyclers.
Tips for Airbags
The program’s home page,
www.airbagresources.com, contains information on the training program. “Guidelines for
Use of OEM Non-Deployed Airbags” is a free downloadable PDF full of safety tips.
Another feature of the airbag inspection software
is the real time Airbag Recall Check. At the touch of
a button, the software checks the government airbag
recall notices and immediately warns the technician
if a recall campaign is in place, saving time, effort,
and adding to customer satisfaction.
The ARAPro™ brand provides body shop and consumer’s assurance. For more information, visit
www.airbagresources.com or e-mail Peter Byrne at
[email protected]. ■
Focus On
WORKPLACE
SAFETY
Safety
ARA C.A.R. certification
offers you an advantage
to laying the foundation of
a powerful safety program.
By Sue Schauls
iStockphoto.com/Dmitrii Brighidov
S
101
afety compliance is an
important part of running a safe automotive
shop. A safety program is a necessary
part of doing business in a safe and
compliant manner.
Setting up a safety
program is not as difficult as it may seem
once you break down the necessary
components in to smaller steps, using
the ARA Certified Automotive Recycler
(C.A.R.) program as a model.
The C.A.R. program’s basic
safety standards offer auto recycling facilities guidance to compliance. This practical guide may
be useful in designing a compliance
program. The safety program standards discussed in this article provide general guidance and do not
guarantee compliance with federal law. To review C.A.R. program standards, visit the ARA Web site at
www.a-r-a.org/content.asp?contentid=480.
Focus On
WORKPLACE
SAFETY
Safety Program Safety Standard 8
A safety program where a specific individual is in
charge of holding regularly scheduled safety meetings and safety inspections.
WHAT TO DO:
1. Prepare/maintain a written hazard communication plan
2. Designate a Safety Supervisor
3. Compile/maintain the MSDS sheets for all
chemical products stored on-site. (Download
the basic auto recyclers MSDS at www.
sueschauls.com/msds.html.)
4. Conduct monthly/regularly scheduled safety
meetings corresponding to the C.A.R. standards and other important topics. Log training
events and maintain records on-site.
5. Conduct and log regular/annual safety inspections. Maintain records on-site.
Become Familiar with the Rule
The Hazard Communication Standard (HCS) is
based on a simple concept – that employees have
both a need and a right to know the hazards and
identities of the chemicals they are exposed to
when working. They also need to know what protective measures are available to prevent adverse
effects from occurring. The HCS (29 CFR
1910.1200) is designed to provide employees with
the information they need. Under the provisions
of the Hazard Communication Standard, employers are responsible for informing employees of the
hazards and the identities of workplace chemicals
to which they are exposed.
Identify Responsible Staff
Simply stated this is the Safety Supervisor. Hazard
communication is an ongoing program in the facility. In order to have a successful program, it is necessary to assign responsibility for both the initial
and ongoing activities that have to be undertaken
to comply with the rule. For any safety and health
program, success depends on commitment and
possibly a change in behavior, if employers understand the program, and are committed to its success, and if employees are motivated by the people
presenting the information to them.
Identify Hazardous Workplace Chemicals
The Standard requires a list of hazardous chemicals in the workplace as part of the written hazard
communication program. The list will serve as an
inventory of everything for which a MSDS must be
maintained.
The best way to prepare a comprehensive list is
to survey the workplace. Purchasing records may
also help. Employers should establish purchasing
procedures that result in MSDSs being received
before a material is used in the workplace.
Check your files against the inventory you have
just compiled to ensure that an MSDS exists for
each potentially hazardous chemical. If any are
missing, contact your supplier and request one.
Preparing and Implementing a
Hazard Communication Program
All workplaces where employees are exposed to
hazardous chemicals must have a written plan
which describes how the standard will be implemented in that facility. The plan does not have to
be lengthy or complicated. It is intended to be a
blueprint for implementation of your program – an
assurance that all aspects of the requirements are
addressed. (Download a sample plan at www.
sueschauls.com/Haz_Comm__Sample_Plan.doc.)
Add the facility specific information and the
name of the Safety Supervisor to the template plan
provided. Add any additional site specific information to the plan and keep a copy of this written
plan in the MSDS binder or readily available in
case of an OSHA inspection.
Personal Protective Equipment
Safety Standard 1
Photo submission required for this standard.
Utilization of Basic Personal Protective Equipment Including Gloves, Hard Hats, Safety Shoes,
Safety Clothing, Safety Shields, and Goggles, When
Required
Personal protective equipment (PPE) can help
complement other measures taken by employers
and employees to minimize hazards and unsafe
conditions. Recent OSHA revisions require the
employer to complete a written hazard evaluation
of the workplace to determine employee hazards
and the PPE necessary to protect them.
Personal Protective Equipment (PPE) is specialized clothing or equipment worn by employees for
protection against health and safety hazards.
Personal protective equipment is designed to protect many parts of the body, including; eyes, head,
face, hands, feet, and ears.
WHAT TO DO:
1. Determine appropriate PPE for the facility
and complete written hazard evaluation.
2. Train each employee required to use PPE.
3. Make PPE available to employees or require
that employees provide their own PPE.
Eye Wash Station Safety Standard 2
OSHA Approved 15-Minute Eye Wash Station(s)
Readily Accessible Near Corrosive Materials (i.e.
battery storage, processing and recharge areas).
Workers’ eyes may be damaged very quickly by
exposure to contaminants in battery storage or
vehicle processing areas. The first fifteen seconds
after an eye injury is critical. The American National
Standards Institute (ANSI) suggests that eye wash
stations be located within 100 feet, or a 10 second
walk, of critical work areas.
WHAT TO DO:
1. Install/maintain an OSHA approved 15minute eye wash station(s) where corrosive
materials are used.
2. Provide annual training to employees on the
location and use of an eyewash station.
3. Complete an Emergency Eye Wash Protection
Plan and retain a copy in safety records.
Fire Extinguishers Safety Standard 3
Readily Available, Appropriately Typed, and
Fully Charged Fire Extinguishers
Fires may be caused by welding or torching, fuel
or fume explosions, electrical problems, or ignition
of combustibles. Take preventive measures, learn
how to recognize and respond to different types of
fires, and properly handle and store chemicals and
flammable liquids.
5. Arrange for hydrostatic testing by trained persons at specified intervals by state.
6. Train employees on fire prevention and emergency response.
OSHA rule 29 CFR 1910.157 states that an
employer shall provide approved portable fire
extinguishers and shall mount, locate and identify
them so that they are readily accessible to employees
without subjecting the employees to possible injury.
Fire extinguishers must be maintained in a fully
charged and operable condition and kept in their
designated places at all times except during use.
Fire extinguishers for employee use should be
selected and distributed based on the classes of
anticipated workplace fires and on the size and
degree of hazard which would affect their use. A
multi-purpose ABC rated fire extinguisher is appropriate for an auto salvage operation.
Inspection Requirements
• Inspect monthly – Portable fire extinguishers
shall be visually inspected monthly.
• Conduct annual maintenance – Fire extinguishers are subjected to an annual maintenance check. Record the annual maintenance
date and retain this record for one year after
the last entry. Hire a professional.
Many of the multi-purpose inexpensive fire extinguishers are on the manufacturer’s recall list. It
only makes sense to use a professional fire extinguisher service to protect your employees and your
business. Provide adequate protection such as back
up fire extinguishers when portable fire extinguishers are removed from service for maintenance
and recharging.
Torch Protocol Safety Standard 4
Photocopy submission required for this standard.
Company will administer and sign the C.A.R.
WHAT TO DO:
1. Mount portable fire extinguishers in designated areas so that they are readily and easily
identified and accessible.
2. Select appropriate type of extinguisher for
potential class of fire.
3. Maintain fire extinguishers in a fully charged
and operable condition.
4. Document inspections and annual maintenance on a tag affixed to each extinguisher.
Focus On
WORKPLACE
SAFETY
Torch-use Education & Orientation Protocol prior
to an employee’s use of a cutting torch.
WHAT TO DO:
1. Retain a signed and dated copy of this and any
other training programs in the employee files
prior to use of a gas cutting torch.
2. Conduct and log cutting torch safety awareness
for all employees at least once annually.
Download the Employee training material at
www.a-r-a.org/files/torch_protocol_2009.pdf
First Aid Kit Safety Standard 5
A properly stocked first aid kit that is in close
proximity to the dismantling areas, and is adequately sized for the number of employees in that
area.
A first aid kit allows trained workers to respond
to a minor injury or illness, and to provide temporary relief of a more serious injury until professional
medical assistance is obtained.
WHAT TO DO:
1. Keep one or more first aid kits clean, dry, and
readily available to workers.
2. Notify the workers of the locations of the first
aid kits.
3. Keep the first aid kits well-stocked to treat common industrial injuries (bumps and abrasions,
cuts, burns, strains and sprains, and eye
injuries).
Every salvage yard should maintain a first aid kit
on-site at the facility in the event of a medical emergency. A well stocked first aid kit can complement
other safety equipment such as the eye wash station
and personal protective equipment. Together these
supplies can protect employees.
OSHA First Aid Kits and supplies are required to
be readily available per 29CFR1910.151.b (Medical
Services and First Aid). OSHA does not have a
minimum requirement, but references ANSI
Z308.1-2003 Minimum Requirements for Workplace First Aid Kits.
Spill Kit Safety Standard 6
Adequately sized spill kit(s) are available in close
proximity to the storage and/or removal areas of
the fluids listed in the environmental standards sec-
tion of this application.
Every salvage yard should maintain a spill cleanup
kit on-site at the facility in the event of an emergency
spill. Spills have a few issues with which to be concerned.
First is the protection of employees (and customers) if the spill contains hazardous material. To
accomplish this task the appropriate type of spill
cleanup kit must be selected from the myriad of
choices available.
The second issue is to make sure that employees
are trained on the use and locations of all spill
cleanup kits. Simple to do as long as you do it, it’s
called TRAINING.
Finally, if the quantity of material spilled is
sizeable or made of acutely hazardous chemicals
the spill must be reported to the regulatory agency.
In some instances, an emergency response team
will be discharged. These types of spills are infrequent at a well-equipped salvage yard.
WHAT TO DO:
1. Maintain a spill kit(s) that contains appropriate
absorbents and/or containment devices to
handle the type and amount of fluids that
could be released.
2. Place the labeled spill kit(s) where fluids are
used or stored.
3. Provide and document training to appropriate
workers on how to properly manage fluids,
prevent spills and leaks, respond and clean up
a spill, and dispose of the used absorbents.
Self Serve Safety Posters
Safety Standard 7
Self Service facilities have posted safety reminders
for customers.
The Occupational Safety and Health Administration (OSHA) and state labor departments require
safety posters to be displayed in businesses that are
subject to OSHA reviews. Safety posters remind
employees of precautions they need to take to
remain safe in the workplace. In self-serve facilities
safety posters can also remind technicians that are
customers to conduct themselves in a safe manner
too. ■
Sue Schauls is an independent environmental consultant with automotive
expertise. She is the Iowa Automotive Recyclers Executive Director & I-CARE
Program Manager and the CCAR-Greenlink Technical Advisor. Schauls, found
at www.SueSchauls.com, participates in the ARA CAR, Technical Advisory
and Affiliate Chapters committees.
ARA
SCHOLARSHIPS
ARA
Scholarship
Foundation
Recipients
Academic Year 2011-2012
T
he ARA Scholarship Foundation, Inc. is a non-profit
organization whose purpose is to promote education
through the awarding of scholarships. Monies are available to ARA members’ employee’s children for post-high
school educational pursuits. These scholarships are funded through contributions from people like you, who care
about the future of our children, as well as money raised
at events.
Each year, many generous contributors help the
Foundation achieve its goals. The funds help even more
students achieve their dream – gaining a college education. We appreciate all of you who generously contributed
to this effort. Donations and fundraising derive money
for the foundation.
Now, how can you help? Why not send a donation
today? You can even sponsor a named scholarship!
Those wanting to make a donation of $1,000 at one time
may name a scholarship for one year. For $10,000 a permanent scholarship may be named. A donor may name
such scholarships in honor or memory of anyone of his
or her choice. Contributions are tax-deductible and can
be made by cash, check, MasterCard, Visa, or American
Express.
The deadline to apply for a scholarship for the next
academic year is drawing near. Eligible applicants, those
who must be a child of an employee of a direct ARA
member company, need to apply for the scholarship
funds by completing a scholarship application and submitting it by March 15, 2012. The awards are made based
on scholastic achievement.
Download an application from the ARA Web site at
www.a-r-a.org or you can contact Kelly Badillo directly at
(571) 208-0428 or e-mail [email protected] to receive an
application by mail or e-mail.
2011-2012
SCHOLARSHIPS
ARA FOUNDATION RECIPIENTS
Academic Year 2011-12
DON COWELL HONORIAL
SCHOLARSHIP
Emily Andersen, University of
Northern Iowa, Cedar Falls, IA
Member: Vander Haag’s, Inc.,
Spencer, IA
Parent: Roger Andersen
RUBY GRIGGERS MEMORIAL
SCHOLARSHIP
Amy Anema, Huntington
University, Huntington, IN
Member: LKQ Corporation,
Chicago, IL
Parent: Kenneth Anema
AL-JON SCHOLARSHIP
Chelsey Baker, Florida State
University, Tallahassee, FL
Member: LKQ Potomac
German Auto South,
St. Augustine, FL
Parent: Roberta Baker
FAY ORCUTT MEMORIAL
SCHOLARSHIP
Samantha Baker, Florida State
University, Tallahassee, FL
Member: LKQ Potomac German
Auto South, St. Augustine, FL
Parent: Roberta Baker
LKQ CORP SCHOLARSHIP
Adam Baluch, Purdue University,
West Lafayette, IN
Member: LKQ Corporation East
Region Mgmnt. Co., Akron, OH
Parent: Matthew Baluch
JAN SORENSON MEMORIAL
SCHOLARSHIP
Brad Bartels, Grand Valley
State University, Allendale, MI
Member: LKQ Veneklasen
Auto Parts, Holland, MI
Parent: Brian Bartels
JOHN C. VANDER HAAG HONORIAL
SCHOLARSHIP
Jessica Behrens, Iowa Lakes
Community College, Emmetsburg, IA
Spencer, IA
Parent: Jim Behrens
STEVE WATERBURY MEMORIAL
SCHOLARSHIP
Tawni Boardman, Whitewater
University, Whitewater, WI
Member: LKQ Star Auto Parts,
Janesville, WI
Parent: James Boardman
STUART SPITZ HONORIAL
SCHOLARSHIP
Sean Fisher, Ohio University,
Athens, OH
Member: All Foreign & Domestic
Used Auto Parts, Inc., Columbus, OH
Parent: Guy Fisher
RICHARD J. CASSIDY MEMORIAL
SCHOLARSHIP
Cassandra Johnson, Syracuse
University, Syracuse, NY
Member: Erie Volvo, Inc.,
Whitesboro, NY
Parent: Jack Johnson
JOHN ANSPACH MEMORIAL
SCHOLARSHIP
Amber Bovenmyer, Univ. of
Wisconsin - Madison, Madison, WI
Janesville, WI
Parent: Amy Bovenmyer
CLAUDE A. MILLER JR. MEMORIAL
SCHOLARSHIP
Tyler Garst, Washburn
University, Topeka, KS
Member: A&A Auto and Truck Parts,
Topeka, KS
Parent: Scott Garst
G.M. VENEKLASEN MEMORIAL
SCHOLARSHIP
Ashley LaFrance, Eastern
Washington University, Cheney, WA
Member: Spalding Auto Parts,
Spokane, WA
Parent: Glen LaFrance
NAN TODER MEMORIAL
SCHOLARSHIP
Caleb Bowman, Univ. South Carolina
- Upstate, Spartanburg, SC
Member: LKQ A & R Auto Parts,
Duncan, SC
Parent: Joe Bowman
SANDY ANDERSEN MEMORIAL
SCHOLARSHIP
Danielle Gaw, Columbia
College, Columbia, MO
Member: J.C. Auto & Truck Parts,
Monroe City, MO
Parent: Brian Dean
EZ CRUSHER SCHOLARSHIP
April Lebhan, Anoka Ramsey
Community College,
Coon Rapids, MN
Member: John’s Auto Parts,
Blaine, MN
Parent: Jan Johnson-Lebhan
JOSEPH ALTFATER MEMORIAL
SCHOLARSHIP
Casey Carpenter, University
of Missouri, Columbia, MO
Member: LKQ Mid-America
Auto Parts, Topeka, KS
Parent: Kevin Carpenter
WANDA LINDEMAN MEMORIAL
SCHOLARSHIP
Travis Hankamp, Santa Fe College,
Gainesville, FL
Member: LKQ Greenleaf - Lake City,
Lake City, FL
Parent: John Hankamp
ELVIS MUNTZ MEMORIAL
SCHOLARSHIP
Candace Leegwater, Purdue
University, West Lafayette, IN
Member: Metro Auto Recyclers,
Valparaiso, IN
Parent: John Leegwater
SOL & LIN TODER HONORIAL
SCHOLARSHIP
Hannah Dahlgren, Endicott
College, Beverly, MA
Member: Jerry Brown’s Auto Parts
Center, Ltd., Queensbury, NY
Parent: Julia Dahlgren
BILL WEAVER HONORIAL
SCHOLARSHIP
Michael Henry, Lynchburg College,
Lynchburg, VA
Member: Norfolk Recycling, Inc.,
Chesapeake, VA
Parent: Gary Henry
CAROL PHELPS MEMORIAL
SCHOLARSHIP
Dylan Mangini, Western Washington
University, Bellingham, WA
Member: Airport Auto Wrecking,
Inc., Port Orchard, WA
Parent: Gerald Gargano
MARY BUESSING & ROSE KELLY
MEMORIAL SCHOLARSHIP
Nicole Dutton, Bristol Community
College, Fall River, MA
Member: Sylvia’s Auto Parts, Inc.,
South Dartmouth, MA
Parent: Sharon Dutton
DAVID AUTRY MEMORIAL
SCHOLARSHIP
Emily Heuver, University of
Maryland, College Park, MD
Member: LKQ Potomac German
Auto, Frederick, MD
Parent: Marcel Heuver
Jamie Markwell, Gannon
University, Erie, PA
Member: LKQ CorporationTriplett, Akron, OH
Parent: Judy Markwell
HARY RUBIN MEMORIAL
SCHOLARSHIP
Daniel Eckel, University of
Illinois, Champaign, IL
Chicago, IL
Parent: Stephen Eckel
SKIP WELLER HONORIAL
SCHOLARSHIP
Quinn Huver, Alma College, Alma, MI
Member: Weller Auto Parts,
Grand Rapids, MI
Parent: Anthony Huver
Damien May, Stark State
College, North Canton, OH
Member: LKQ Corporation-T
riplett, Akron, OH
Parent: Brett Bell
Ashley Means, Eastern Michigan
University, Ypsilanti, MI
Member: LKQ of Michigan, Inc.,
Belleville, MI
Parent: Robert Means
KEN VONHOF MEMORIAL
SCHOLARSHIP
Baylee Mehr, College of St.
Benedict’s, St. Joseph, MN
Member: Pam’s Auto, Inc.,
St. Cloud, MN
Parent: Michelle Mehr
LINDA PITMAN HONORIAL
SCHOLARSHIP
Jennifer Rasco, Texas Tech University
Health Science Center, Lubbock, TX
Member: B & R Auto Parts,
Lubbock, TX
Parent: Terry Rasco
ASHLEY GEIGER MEMORIAL
SCHOLARSHIP
Caleb Swinson, Appalachian State
University, Boone, NC
Member: Foil’s Automotive
Recycling, Harrisburg, NC
Parent: Timothy Swinson
JOHN ANSPACH MEMORIAL
SCHOLARSHIP
Alyssa Venditto, Syracuse
University, Syracuse, NY
Member: LKQ Hunts Point Auto
Parts, Bronx, NY
Parent: Michael Venditto
KATIE & ALEX LIEBERMAN FAMILY
MEMORIAL SCHOLARSHIP
Taylor Mehr, University of
Minnesota, Minneapolis, MN
Member: Pam’s Auto, Inc.,
St. Cloud, MN
Parent: Michelle Mehr
Geoffrey Riggs, Jr, Arizona State
University, Tempe, AZ
Member: LKQ All Models
Corporation, Phoenix, AZ
Parent: Geoffrey Riggs
TERRY GRAY HONORIAL
SCHOLARSHIP
Christopher Taylor, Trent University,
Peterborough, ON
Member: Carcone’s Auto Recycling,
Aurora, ON
Parent: Daryl Leigh
REGION IV ARIZONA & NEW MEXICO
SCHOLARSHIP
Daniel Weaver, University of
Maryland, Baltimore, MD
Member: Chaz’s Used Auto Parts
& Towing, Toneytown, MD
Parent: Sharon Weaver
BO WROTEN HONORIAL
SCHOLARSHIP
Kelsey Thole, Baptist Bible College,
Springfield, MO
Member: B & B Auto Parts &
Salvage, Inc., Oklahoma City, OK
Parent: Dale Thole
CAR-PART.COM HONORIAL
SCHOLARSHIP
Aubrey White, Univ. of North
Carolina at Wilmington,
Wilmington, NC
Member: 67 Motors, Pfafftown, NC
Parent: Gregory White
NEW YORK ASSN. OF AUTO
DISMANTLERS SCHOLARSHIP
Clay Uplinger, Broome Community
College, Binghamton, NY
Member: Don’s Automotive Mall,
Inc., Binghamton, NY
Parent: Stephen Uplinger
DICK & DOROTHY MERRELL
HONORIAL SCHOLARSHIP
Rebecca Wright, Univ. of WisconsinRiver Falls, River Falls, WI
Member: John’s Auto Parts,
Blaine, MN
Parent: Eric Wright
KENNY HUBBARD HONORIAL
SCHOLARSHIP
Melissa Minello, University of
Toledo, Toledo, OH
Member: Pull-A-Part Cleveland II
(West), Cleveland, OH
Parent: Bret Park
GERALD C. SHEFTEL MEMORIAL
SCHOLARSHIP
Victoria Morrone, Georgia Southern
University, Statesboro, GA
Member: Weaver Automotive,
Carnesville, GA
Parent: Joseph Morrone
Katelyn Mouw, South Dakota State
University, Brookings, SD
Sioux Falls, SD
Parent: Steven Mouw
Mariah Odom, Univ. South Carolina Upstate, Spartanburg, SC
Member: LKQ A & R Auto Parts,
Duncan, SC
Parent: Michael Odom
DON & CAROL PHELPS HONORIAL
SCHOLARSHIP
Casey Quaale, Spokane Community
College, Spokane, WA
Member: Bill’s Auto Parts, Inc.,
Spokane, WA
Parent: Duane Quaale
Rebecca Rapport, Ohio State Univ.
Office of Bursar, Columbus, OH
Aurora, CO
Parent: J. David Rapport
MARK T. SPEARS HONORIAL
SCHOLARSHIP
Blake Rostine, University of
Nebraska, Lincoln, NE
Chicago, IL
Parent: Lois Rostine
Samantha Schultz, Kishwaukee
College, Malta, IL
Member: LKQ Smart Parts,
Hustisford, WI
Parent: Sandy Schultz
EDYTHE CLELAND MEMORIAL
SCHOLARSHIP
Gina Shanks, Saint Mary’s
University, Halifax, NS
Member: Covey’s Auto Recyclers,
Blandford, NS
Parent: David Shanks
FRANK NICASTRI MEMORIAL
SCHOLARSHIP
Jenna Snively, Viterbo University,
La Crosse, WI
Member: Kadinger’s, Downing, WI
Parent: Patrick & Julie Snively
DONALD ROUSE HONORIAL
SCHOLARSHIP
Felicia Soderstrom, Washington
State University, Pullman, WA
Member: Spalding Auto Parts,
Spokane, WA
Parent: Duane Soderstrom
Cody Steed, University of WisconsinWhitewater, Whitewater, WI
Janesville, WI
Parent: Tom Steed
NORMAN DULANEY HONORIAL
SCHOLARSHIP
Emily Vanderbrink, South Dakota
State University, Brookings, SD
Member: Nordstom’s Automotive,
Inc., Garretson, SD
Parent: Yvette VanderBrink
MAKE A DIFFERENCE!
SEND YOUR CONTRIBUTION TO THE ARA SCHOLARSHIP FUND
Mail to: ARA Scholarship Foundation, 9113 Church Street, Manassas, VA
20110-5456. Donations are accepted in the form of check, MasterCard,
Visa, or American Express.
Name: ____________________________________________________________________
Address: __________________________________________________________________
Address: __________________________________________________________________
Amount of Donation: ______________________________________________________
Check one: ❏ Check ❏ MasterCard ❏ Visa ❏ American Express
Name on Card: ____________________________________________________________
Credit Card #: ____________________________________________________________
Expiration Date: ________________________________Card Security Code: __________
Spotlight on
EXCELLENCE
Peacock
Auto Salvage
B
ob Peacock, owner and President of Peacock Auto Salvage based in Macon, Georgia,
is an example of someone who had a dream and made it come true. In 1975, fresh
out of high school and without a dime in his pocket, he set out to fulfill his dream to
own a salvage yard.
“I started out without any money or property,” said Peacock. “There was a guy who
had a small claw crusher and he would come through the area where I lived looking
for junk cars to scrap. I made a deal with him that I would find the cars for him, and
he would pay me for each car I found.”
Before too long, Peacock saved enough money to
buy a 1950 model two ton Macon Linen Ford Truck.
He designed and constructed his first skid truck from
this by placing a wench with two home-made rails that
pivoted to the ground to load each car he bought
onto the truck.
With the money he made from this venture, he was
able to buy more cars to save for crushing. Eventually,
he had saved enough to buy two brand new Chevrolet
one ton trucks. It was during this time that he had the
dream to start his own salvage yard.
“Back then, there were plenty of junk cars sitting
around in people’s backyards,” said Peacock. “People
didn’t lease cars then and a lot of elderly people, especially, would drive their cars until they died then purchase new ones. At first, I was using my own trucks to
transport these cars from their yards to the scrap yard.
It wasn’t too long after I started this, that I made the
decision to retain these vehicles to take the parts off
of them to salvage, instead of taking them directly to
the scrap yard.”
Peacock began his search for land on which to store
the cars he was amassing. He soon found what he was
looking for.
“I was fortunate to have a neighbor who owned a
large farm and sold me land, bit by bit, and I would
pay him yearly,” said Peacock. “At first, I started out by
buying five acres from him. We continued like this for
a period of time and I eventually acquired 150 acres
in total. Instead of putting the money I earned in the
bank, I invested it back into my business by purchasing the land.”
As he looks back today, Peacock says for him, this
time was the most challenging time of the business.
“The biggest challenge I have ever had was taking
presented at the ARA convena dream and stepping out to turn it into a reality,” said
tion.
Peacock. “I always had the concern of not having
“We didn’t know who nomimoney and asking myself, ‘without money how can I
nated us but it was a great feeldo it?’ I started out without anything but an idea, and
ing to be recognized after all
the challenge was how to survive and how to pay for
the hard work we’ve put into
it. I did extra work to pay off what I owed.”
the business,” said Peacock.
For example, Peacock, at one time, would cut grass
Like most auto recyclers,
and do yard work for an elderly lady, and in return,
Peacock feels salvage acquisishe gave him six old junk cars she had sitting on her
tion has been and continues to
property.
be a tough area of business.
Peacock kept plugging away at it and gained
“Car buying is something I
money to acquire a boom truck and hire a couple
still like to do and it used to be
of employees to help him. Soon, he was able to build
easy for me,” he said. “Now,
his first office and in the 90’s, business started to realcompetition is open to the
ly take off.
world and most people bid
Looking back, Peacock is amazed at what the busionline. When I first started
ness has become.
buying, three insurance adjus“I sit here in my newest building on this property
tors would call me and I could
and not a day goes by that I don’t think about what I
pretty much bid on a car and
went through to get here,” he said. “It’s unbelievable
pay what I wanted for it. Back
how the whole thing came about. It gives you self-motithen there were maybe only
vation. You can’t start something and not finish. You
three yards bidding on cars.
have to set goals for yourself.
Now it’s open to the world,
“I was, and still am, blessed to have had the support
plus I end up paying more in
of my parents. They are good role models. They were
auction fees than what I pay for the car.
hardworking. My Dad worked three jobs and, al“This forces us to raise prices on our parts, and sadly,
though he worked really hard, I never heard him comthis can lead to a loss of customers because they can
plain. He even worked at my salvage yard when he
buy new parts for some of the same prices. It really is
retired.”
one of the biggest issues facing auto recycling now and
Peacock says he is also grateful for
in the future.”
the support of Jan, his wife of 37 years.
Currently, Peacock Auto Salvage
“We were young and had our first
has plans to develop a Pick ‘N’ Pull
son, Taylor, who was a year-old when I
yard and aims to have it operational
started my business,” he explained.
this year.
“She stood behind me in all my deci“We are also increasing our prosions and supported me all the way.”
duction of rebuilt cars and trucks,” he
Peacock’s Auto Salvage today conexplains. “We are leaning towards
tinues to thrive and consists of 50 acres
rebuilding cars and trucks because
and two buildings including a 40,000
they are so expensive to buy new and
square foot warehouse. Its delivery
it is less expensive to rebuild them for
radius stretches to 200 miles from the
the purpose of resale. We are always
city of Macon. It employs 20 people,
trying to stay ahead of the game and
with whom Peacock says it’s been a
change as the nature of the business
Robert Peacock, Peacock’s Auto Salvage.
pleasure to work with.
changes.”
“Finding the right employees has never been a probAnd so, for Bob Peacock, the dream continues. His
lem for Peacock Auto Salvage,” he said. “I have always
father, “Mr. Ed” is alive and well and stops in every now
had really honest and dependable employees. “I have
and then, and Bob’s two sons are working with him
worked with wonderful people and I have enjoyed
in the business, so the future holds many possibilities.
every bit of it.”
Although challenges will come his way, Peacock has
One of the milestones for Peacock and his business
shown that he will take those in stride and overcome
has been receiving ARA’s Star Award as the 2007
them and so will his business. ■
Certified Automotive Recycler Member of the Year,
Michelle Keadle-Taylor is a freelance writer in Northern Virginia.
Certified News
Gold Seal Program
Approved Gold Seal Participants
A & P Auto Parts, Inc.
A-1 Auto Recyclers
AAA Auto Salvage, Inc.
ABC Auto Parts & Sales, Inc.
Aberdeen Used Cars & Parts
Albuquerque Foreign Auto Parts
Algar, Inc. dba Grade A Auto Parts
All Auto Parts Co.
All Foreign & Domestic Used Auto Parts, Inc.
Al’s Auto Parts, Inc.
American Auto Parts
American & Import Auto Parts
Automotive Parts Solutions
B & B Auto Parts & Salvage, Inc.
B & B Auto Salvage, Inc.
B & M Auto Sales & Parts, Inc.
B Auto Parts
Badger Motors
Baird’s Auto Parts, Inc.
Bay Auto Parts
Bessler Auto Parts
Bionic Auto Parts & Sales, Inc.
Blenkhorn’s Auto Recyclers, Ltd.
Bow Auto Salvage, Inc.
Brothers Auto Salvage Yard, Inc.
Brown’s Auto Salvage
Butler Auto Recycling, Inc.
BW Auto Dismantlers, Inc.
C & H Salvage Corp.
Calumet Auto Salvage, Inc.
Car World, Inc.
Carcone’s Auto Recycling
Central Auto Recycling, Inc.
Centre De Recyclage Universel (1981) Ltee.
Chuck & Eddies Used Auto Parts
Cocoa Auto Salvage, Inc.
Columbia Auto Parts
County Line Auto Parts
Cousineau Auto Parts, Inc.
D. A. Auto Parts, Ltd.
Decatur Auto Parts, Inc.
Denton County Auto Salvage
Diamond Auto Parts
Don’s Automotive Mall, Inc.
Eiss Brothers Auto Parts, Inc.
Elmer’s Auto, Inc.
Erie Vo-Vo, Inc.
Foreign Auto Salvage
Freeman’s Auto Salvage Center, Inc.
Goyette’s, Inc.
Grimes Truck & Auto Parts
H & H Auto Parts & Salvage, Inc.
Hanser’s Automotive & Wrecker Company
Hickman Motors, Inc.
Highway 54 Salvage, Inc.
J.C. Auto & Truck Parts
Jantz’s Yard 4 Automotive, Inc.
Jerry Brown Auto Parts Center, Ltd.
Jerry Carney & Sons, Inc.
John’s Auto Parts
Kadinger’s II
Kadinger’s, Inc.
Kadinger’s, Inc.
Kelly Auto Parts
Kirchhayn Auto Salvage, Inc.
Lacy Auto Parts, Inc.
Lecavalier Auto Parts, Inc.
Cicero
Rapid City
Rosemount
Blue Island
Aberdeen
Albuquerque
Louisville
Fontana
Columbus
Trevose
Omaha
Sterling Heights
Rockville
Oklahoma City
Rapid City
Waukesha
East St. Louis
Wisconsin Rapids
Fairdale
Green Bay
Wilder
Chicago
Brookside
Bow
Indianapolis
Bomoseen
Pensacola
Roseville
Campbell Hall
Milwaukee
Candia
Aurora
Syracuse
Val D’Or
Plantsville
Cocoa
W. Columbia
Kingsville
Weston
Dumfries
Decatur
Denton
Fond Du Lac
Binghamton
Watertown
Fountain City
Whitesboro
Ft. Wright
Joplin
New Bedford
Grand Prairie
Sussex
Billings
Hickman
Trenton
Monroe City
Kenosha
Queensbury
Ames
Blaine
Barron
Cadott
Downing
Faribault
Cedarburg
Charles City
Ste.-Sophie
NY
SD
MN
IL
NC
NM
KY
CA
OH
PA
NE
MI
MN
OK
SD
WI
IL
WI
KY
WI
KY
IL
NS
NH
IN
VT
FL
CA
NY
WI
NH
ON
NY
QC
CT
FL
SC
MO
WI
Scotland
IL
TX
WI
NY
NY
WI
NY
KY
MO
MA
TX
WI
MT
KY
TN
MO
WI
NY
IA
MN
WI
WI
WI
MN
WI
VA
QC
Lewis Auto & Truck Parts
LKQ Advanced Auto Recycling
LKQ Auto Parts of Central Texas
LKQ Auto Parts of North Texas, LP
LKQ Auto Parts of South Texas
LKQ Midwest Auto Parts
LKQ of Michigan, Inc.
LKQ of Nevada, Inc.
LKQ of Southern California
LKQ Potomac German Auto
LKQ Smart Parts, Inc.
LKQ Star Auto Parts, Inc.
LKQ Triplett ASAP, Inc.
LKQ West Michigan
Logel’s Auto Parts
M & M Auto Parts, Inc.
Midway Auto Parts, Inc.
Miller’s Auto Recycling (1992), Ltd.
Morris Rose Auto Parts, Inc.
Morrisons Auto, Inc.
Nordstrom’s Automotive, Inc.
Norfolk Recycling Corporation
Northwest Auto Parts
Olston’s Auto Recyclers
Pam’s Auto, Inc.
Parts Unlimited, Inc.
Peacock Auto Salvage, Inc.
Pete’s Auto & Truck Parts, Inc.
Preferred Auto & Truck Parts, LLC
Remington Auto Salvage, Inc.
Rhine Auto, Inc.
Rhodes Auto S/S/S, Inc.
Ridge Road Auto Parts
Riteway Auto Parts, Inc.
Robertson’s Auto Salvage, Inc.
Rockford Auto Parts, Inc.
Sandhill Auto Salvage, LLC
Schram Auto Parts
Sharp Auto Parts, LLC
Shroyer’s Auto Parts
Snyder’s Recycled Auto and Truck Parts
Sonshine Auto Parts
Spalding Auto Parts, Inc.
Speedway Auto, Ltd.
Stadium Auto & Truck Parts, Inc.
Stafford’s, Inc.
Standard Auto Wreckers
Stoystown Auto Wreckers
Stricker Brothers, Inc.
Tolpa’s Auto Parts
Tom’s Foreign Auto Parts
Toomer Enterprises, LLC dba Doggett Auto Parts
Trails End Auto and Truck Salvage, Inc.
Viking Auto Salvage, Inc.
Walt’s Auto, Inc.
Waterloo Auto Parts, Inc.
Wayne Auto Salvage, Inc.
Weller Auto Parts, Inc.
West Side Auto Parts, Inc.
Wilbert’s, Inc.
Woodfin Honda / Pick and Save
Yancey Auto Salvage
Y-Yard Auto & Truck, Inc.
Topeka
Cumberland
New Braunfels
Hutchins
Houston
Omaha
Wayne
North Las Vegas
Santa Fe Springs
Frederick
Hustisford
Janesville
Akron
Holland
Kitchener
Stafford
Kansas City
Fort Erie
Kalamazoo
Edgerton
Garretson
Chesapeake
Anchorage
Lincoln
St. Cloud
Pearland
Macon
Jenison
Conway
Eau Claire
Plymouth
Streator
Cleveland
Phoenix
Wareham
Rockford
Tama
Waterford
Stillwater
Lansing
Holland
Cumberland
Spokane
Joliet
Denver
Montgomery
Toronto
Stoystown
Batavia
Remsen
Waterbury
Bryan
Des Moines
Northfield
Springfield
Waterloo
Goldsboro
Grand Rapids
Laurel
Webster
Midlothian
Perry
Effingham
KS
RI
TX
TX
TX
NE
MI
NV
CA
MD
WI
WI
OH
MI
ON
VA
MO
ON
MI
WI
SD
VA
AK
NE
MN
TX
GA
MI
AR
WI
WI
IL
OH
AZ
MA
IL
IA
MI
MN
MI
TX
ON
WA
IL
CO
IL
ON
PA
OH
NY
CT
TX
IA
MN
OH
IA
NC
MI
DE
NY
VA
MO
IL
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Certified News
Certified Automotive Recycler (C.A.R.) Program
Approved C.A.R. Participants
43 Auto Salvage
A & A Auto and Truck Parts, Inc.
A & A Auto and Truck Parts, Inc. (North)
A & C Auto Parts & Wrecking Co.
A & T Auto Parts, Inc.
AAAACO Auto Parts, Inc.
Aadlen Bros Auto Wrecking
Ace Auto Recyclers, Inc.
Action Auto Parts, Inc.
All Car & Truck Recycling
All Foreign Used Auto Parts, Inc.
Alliance Auto Parts
Alvin’s Automotive Recycling
American Auto Recycling
Auto Parts City, Inc.
B & M Cars & Salvage
B & R Auto Wrecking
Barger Auto Parts
Bauer’s Auto Wrecking
Bill’s Auto Parts, Inc.
Bill’s Used Parts, Inc.
Borges Foreign Auto Parts, Inc.
Bowie Used Auto Parts, Inc.
Brandywine Auto Parts, Inc.
Brandywine Truck Parts
Brandywine Two, Inc.
Brooks Auto Sales, Inc.
Bruce Auto Parts, Inc.
Camp Auto Salvage
Central Small Car Salvage
Choice Auto Recyclers, Inc.
Chuck’s Auto Salvage, Inc.
Clayton Auto Parts & Wrecking, Inc.
Colorado Auto & Parts, Inc.
Compact Auto Parts
Cosmos Ocean County Recycled Auto Parts
Cosner Brothers Auto Parts, Inc.
Counselman Automotive Recycling, LLC
Cousineau Auto, Inc.
Covey’s Auto Recyclers, Ltd.
D-N-J Auto Parts
Danny’s Auto Salvage, Inc.
Denison Auto Parts, Inc.
Dom’s Auto Parts Co., Ltd.
Don Scharf Automotive, Inc.
Dulaney Auto and Truck Parts of Amarillo, Inc.
Duval Auto Parts
Eagle Auto Parts, Inc.
Economy Auto Parts
Eden Used Auto Parts, Inc.
Elgin Super Auto Parts and Sales, Inc.
Fireside Auto Services, Inc.
Five J’s Auto Parts, Inc.
Foreign Car Parts, Inc.
Fox Auto Parts, Inc.
G & R Auto Parts, Inc.
Gary’s U-Pull-It, Inc.
Geiger Truck Parts, Inc.
Glenn’s Auto & Truck Parts
Green Point Auto Parts, Inc.
Hi-Way Auto Parts
Hi-Way Auto, Inc.
Higgins Auto Wrecking, Inc.
Hillsboro Auto Wrecking
Horsehead’s Automotive Recycling
Joplin
Topeka
Topeka
Cleveland
Hyde Park
Lorton
Sun Valley
Iowa City
Marshalltown
Anderson
Fredericksburg
Woodside
Oakland
Gilbert
Gurnee
Sulphur Springs
Corvallis
Nampa
Fresno
Cumberland
Christianburg
Dighton
Bowie
Brandywine
Brandywine
Brandywine
Oilville
Mechanicsville
Barberton
Brandywine
Marinette
Douglassville
Clayton
Englewood
Brandywine
Bayville
Troy
Mobile
Antigo
Blandford
Owensboro
Tulsa
Cleveland
Courtice
Eagle River
Amarillo
Forest
Martinsburg
Tulsa
Eden
Elgin
Bellevue
Albuquerque
Upper Marlboro
Belleville
Oklahoma City
Binghamton
Watseka
Houston
Brewer
Tyler
Brownwood
Bakersfield
Hillsboro
Elmira
MO
KS
KS
OH
NY
VA
CA
IA
IA
CA
VA
NY
CA
AZ
IL
TX
OR
ID
CA
RI
VA
MA
MD
MD
MD
MD
VA
VA
OH
MD
WI
PA
OH
CO
MD
NJ
VA
AL
WI
NS
KY
OK
OH
ON
WI
TX
VA
WV
OK
MD
IL
OH
NM
MD
MI
OK
NY
IL
TX
ME
TX
TX
CA
OR
NY
I-55 Auto Salvage
J & J Auto Wrecking, Inc.
Jeff Smid Auto, Inc.
Jerry’s Auto Salvage, Inc.
Junior Sinn Auto Parts, LLC
Keiffer Auto Recyclers
Knox Auto Parts & Rebuildable Wrecks
Kress Auto Wreckers
Leesville Auto Wreckers, Inc.
Lems Auto Recyclers, Inc.
Lentini Auto Salvage, Inc.
Linder’s, Inc.
LKQ - Barber’s Auto Sales
LKQ 250 Auto, Inc.
LKQ A & R Auto Parts, Inc.
LKQ A Reliable U Pull It South
LKQ Arizona
LKQ Atlanta, LP
LKQ Auto Parts of Utah, LLC
LKQ Birmingham, Inc.
LKQ Brad’s Auto & Truck Parts, Inc.
LKQ Broadway Auto Parts, Inc.
LKQ Copher Self Service Auto Parts Bradenton, Inc.
LKQ Copher Self Service Auto Parts Clearwater, Inc.
LKQ Copher Self Service Auto Parts St. Petersburg, Inc.
LKQ Copher Self Service Auto Parts Tampa, Inc.
LKQ Crystal River, Inc.
LKQ Foster Auto Parts of Damascus
LKQ Foster Auto Parts of Salem
LKQ Foster Auto Parts, Inc.
LKQ Gorham Auto Parts Corp.
LKQ Hunts Point Auto Parts Corp.
LKQ Melbourne
LKQ Michael’s Auto Parts, Inc.
LKQ Mid-America Auto Parts, Inc.
LKQ Minnesota, Inc.
LKQ North Florida
LKQ Northern California (Redding)
LKQ of Central California
LKQ of Ft. Myers
LKQ of Indiana, Inc.
LKQ of Northwest Arkansas dba
LKQ Mid-America
LKQ of Tennessee
LKQ Penn-Mar, Inc.
LKQ Pick Your Part Anaheim
LKQ Pick Your Part Bakersfield
LKQ Pick Your Part Chula Vista
LKQ Pick Your Part Help Your Self
LKQ Pick Your Part Stanton
LKQ Pick Your Part Sun Valley
LKQ Pick Your Part Wilmington
LKQ Pull n Save Auto Parts of Aurora, LLC
LKQ Route 16 Used Auto Parts
LKQ Salisbury, Inc.
LKQ Savannah, Inc.
LKQ Self Service Auto Parts - Holland
LKQ Self Service Auto Parts - Kalamazoo, Inc.
LKQ Self Service Daytona
LKQ Self Service Memphis
Manuel’s Auto Wrecking
Channahon
Marshallville
Iowa Falls
Big Lake
Cape Girardeau
Canton
Knoxville
Hazle Township
Rahway
Doon
Ringoes
Worcester
Ardmore
Harrisville
Duncan
Blue Island
Phoenix
Jenkinsburg
Springville
Birmingham
Redmond
Stuyvesant
IL
OH
IA
MN
MO
OH
TN
PA
NJ
IA
NJ
MA
AL
OH
SC
IL
AZ
GA
UT
AL
OR
NY
Bradenton
FL
Clearwater
FL
St. Petersburg
FL
Tampa
Crystal River
Portland
Salem
Portland
Gorham
Bronx
Melbourne
Orlando
Topeka
Albert Lea
Gainesville
Redding
Bakersfield
Ft. Myers
Plainfield
FL
FL
OR
OR
OR
ME
NY
FL
FL
KS
MN
FL
CA
CA
FL
IN
Fayetteville
Manchester
York Haven
Anaheim
Bakersfield
Chula Vista
Wilmington
Stanton
Sun Valley
Wilmington
Aurora
Webster
Salisbury
Savannah
Holland
Kalamazoo
Daytona Beach
Memphis
Merced
AR
TN
PA
CA
CA
CA
CA
CA
CA
CA
CO
MA
NC
GA
MI
MI
FL
TN
CA
Approved C.A.R. Participants Continued
Massey’s Auto Parts, Inc.
McDill Auto Wrecking, Inc.
Metro Auto Salvage, Inc.
Middleton Auto Parts
Milliron Auto Parts, Inc.
Misgen Auto Parts, Inc.
Newton Auto Salvage, Inc.
Newville Auto Salvage, Inc.
Niks Auto Parts, Inc.
Nissenbaum’s Auto Parts, Inc.
North Verde Auto Salvage
Ole South Auto Salvage, Inc.
P & C Auto Wrecking, Inc.
Pacific Auto Salvage, Inc.
Paradise Auto Parts
Pat’s Auto Salvage
Premier Auto & Truck Parts, Inc.
Pull-A-Part Akron
Pull-A-Part Atlanta East
Pull-A-Part Atlanta North
Pull-A-Part Atlanta South
Pull-A-Part Augusta
Pull-A-Part Baton Rouge
Pull-A-Part Birmingham
Pull-A-Part Canton
Pull-A-Part Charlotte
Pull-A-Part Cleveland I (East)
Pull-A-Part Cleveland II (West)
Pull-A-Part Columbia
Pull-A-Part Indianapolis
Pull-A-Part Jackson
Pull-A-Part Knoxville
Pull-A-Part Lafayette
Pull-A-Part Louisville
Millington
Stevens Point
Lakeville
Fraser
Mansfield
Ellendale
Covington
Edgerton
Neenah
Somerville
Ontario
Lake Placid
Milpitas
American Canyon
Elkton
Waterloo
Cedar Springs
Akron
Lithonia
Norcross
Conley
Augusta
Baton Rouge
Birmingham
Canton
Charlotte
Cleveland
Cleveland
Columbia
Indianapolis
Jackson
Knoxville
Lafayette
Louisville
TN
WI
MN
MI
OH
MN
GA
WI
WI
MA
OR
FL
CA
CA
MD
IA
MI
OH
GA
GA
GA
GA
LA
AL
OH
NC
OH
OH
SC
IN
MS
TN
LA
KY
Online sales
of industrial markers
for auto salvage and auction
• Permanent paint markers from $1.30 each
• Steel tip pressurized markers for wet and oily metals
• Removable markers for auto repair and dealerships
Pull-A-Part Memphis
Pull-A-Part Mobile
Pull-A-Part Montgomery
Pull-A-Part Nashville
Pull-A-Part New Orleans West
Pull-A-Part Winston-Salem
Ransom Motors, Inc.
Reitman Auto Parts & Sales, Inc.
Rhinelander Auto Salvage
Ripple’s Service, Inc.
Robert’s Engines, Inc.
Roberts Salvage, Inc.
Rock & Roll Auto Recycling
Rusty Acres Automotive, Inc.
Salvage GM Parts of South Georgia, Inc.
School Street Light Truck Parts
Schram Auto & Truck Parts Lansing, Inc.
Scotty’s Auto Parts
Shipman Auto Parts, Inc.
Smith Auto & Truck Parts, Inc.
Smith Auto Parts & Sales, Inc.
Snyder Auto Body & Paint
Southern Maryland Used Auto Parts
St. James Auto & Truck Parts, LLC
Van Horn Auto Parts, Inc.
Vander Haag’s, Inc.
West Auto Wreckers, Ltd.
Xtra Mile Truck Recyclers
Memphis
Mobile
Montgomery
Nashville
New Orleans
Winston-Salem
Brandywine
Melbourne
Rhinelander
Upper Marlboro
Lucama
Moffett
Pleasanton
Jacksonville
Valdosta
Lowell
Mason
Virginia
Brainerd
Garden City
Fairfield
Clarinda
Mechanicsville
St. James
Mason City
Spencer
Chula Vista
Phoenix
TN
AL
AL
TN
LA
NC
MD
KY
WI
MD
NC
OK
CA
FL
GA
MA
MI
IL
MN
KS
IA
IA
MD
MO
IA
IA
CA
AZ
Why Join the CAR Program?
The CAR program was created to produce a set of standards for general business practices, as well as environmental and safety issues, and to provide guidance for member facilities in adhering to these standards. This program is one of the cornerstones of our
association as the facilities participating strive to put forward quality service and parts for
the professional automotive recycling industry.
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International Auto Recycling
Reports from Around the World
Technical Competence is Global
By Andy Latham, Bluecycle, UK
ou have operated an Auto Recycling
yard for 30 years, invested thousands
in equipment, training and upgrading
your site, and the Environment Agency
now wants you to prove that you are
“Technically Competent.”
“A government agency telling me how
to run my yard!” has been one of the
most common complaints I have heard
before delegates took part in the 1-day
training that Bluecycle and Aviva recently provided in the UK.
Technical Competence isn’t just about
dismantling end-of-life vehicles. Profits
from auto recycling can easily be swallowed up by inefficient and unsafe practices in the salvage yard. Most of the
delegates in these courses went away realizing the investment they had just made
in the training would have far reaching
benefits to them, their employees and
their businesses.
The course had 4 objectives:
• Identify Health, Safety and
Environmental Hazards and Risk
• Appreciate Health and Safety Law
and Best Practice
• Identify Operational Controls
• Achieve Competence Requirements
The environment can be defined as
everything that surrounds us – air, water
and land. Pollution can be defined as the
release of substances or energy into the
environment, which can contaminate air,
water and land. Waste can be defined as
any substance or object that the holder
discards, intends to discard or is required
to discard.
Most auto recycling businesses are
deemed to be high risk because of the
substances they are dealing with, such as
fuel, oil, and batteries. In the UK there is
“strict liability.” If any pollutants are
found to have originated from a recycling yard then the owner/operator is
Y
liable for all costs of cleaning up and
restoring the polluted area back to its
original state. Liability can also result in
unlimited fines and up to 5 years imprisonment.
Safe workplace, safe equipment,
safe materials, safe people
Health and safety standards, correctly
applied, will change the working lives of
many people. Customers and employees
are protected from harm; equipment
works properly and reliably; and the business can save money, with less down time,
cheaper insurance premiums, and fewer
days lost to injury related absences as a
few examples.
Owners and managers should occasionally take a step back from day-to-day
activities and walk around the operation,
noting any health and safety or environmental concerns. To enable a plan to be
developed to tackle any issues, a simple
calculation can be used to assess risk and
prioritize action.
Risk Level = likelihood x consequence
In assessing the consequence of an
event, for example, oil leaking into a
river, or an employee tripping on something and being off work for a week, rate
incidents on a scale of 1 to 5, where 1 represents an event of very low consequence
and 5 is very high.
Then look at the likelihood of this
event occurring, again rating on a scale
of 1 to 5, where 1 is very unlikely and 5
is highly likely, which will allow you to calculate the risk factor. Once the whole
operation has been reviewed, work on
priority. Focus on the issues that are the
most likely and could cause the greatest
effect, as well as those issues lower down
the priority list that could have their risk
factor reduced by a simple (and cheap)
change in process or training.
The picture (above) gives an example
of risk – ask yourself if there is a low,
medium, or high risk of a pollution event
or health and safety issue here?
Should your business suffer its worst
case scenario, such as flooding or a fire,
you need to ensure you have a continuity plan. Will your insurers help you in
times of most need? Can you continue to
trade and make money within days of this
catastrophic event or will it take you
months to get back on your feet again?
All of these questions need reviewing and
changes need to be made if needed.
Plenty of professionals can assist you
with this, and some will charge considerably, but in most cases it is little more
than establishing a regular routine of
checking the business, making sure
employees are trained and aware of all
the risks, establishing safe processes and
practices, and recording everything you
do. Your insurance company could assist
as they have a financial incentive to make
sure your businesses are clean and safe.
So stay safe, stay clean, stay professional and stay profitable. ■
Aviva will be leading a Health and Safety seminar at the CARS
show in June 2012. The CARS show is being run in conjunction with the International Round Table on Auto Recycling –
www.irt-autorecycling.org for more details and booking information.
Andy Latham is Compliance Manager for Bluecycle, one of
the UK’s leading online car salvage auction sites and online
auction technology specialists. They have been trading for
over 10 years and specialize in car salvage, end of fleet, motorcycle, plant, equipment and commercial salvage, selling
hundreds of vehicles each week to customers throughout the
UK and Europe.
International Auto Recycling
Reports from Around the World
CAA Survey Highlights
Public Misconceptions on
Vehicle Recycling
By Steve Fletcher, Executive Director,
Automotive Recyclers of Canada (ARC)
he Canadian Automobile Association
(CAA) has begun to work with the
Ontario Automotive Recyclers Association (OARA) to improve the recycling of
end-of-life vehicles. Part of that work included a large survey of their members
and the motoring public. With 1 in 4
Canadian drivers a CAA member, the
club is the largest voice of vehicle owners
in Canada.
The survey was conducted by Harris/
Decima, one of Canada’s leading polling
firms, on behalf of CAA its nine member
clubs across Canada. CAA regularly polls
its members and the public to help with
policy making decisions. Over 5,000 people were surveyed regarding undriveable
vehicles and vehicle disposal.
“The research was undertaken in an
attempt to put numbers to what we
already figured was public perception.
Most people think there is legislation
around vehicle recycling,” said Teresa Di
Felice, Director of Government & Community Relations for CAA South Central
Ontario (CAA SCO).
T
Steve Fletcher, Executive Director of
OARA said, “These results help us show
that the issue resonates with the public.
In all my years in the industry I have
never seen anything like this data. It’s
very helpful to have data to back up what
we have been saying for years.”
The survey asked what people do with
their cars when they are no longer driveable. The majority either trades it in, or
has never disposed of a vehicle before.
The minority drops it off at an auto recycling facility or scrap yard.
“We have a pretty strong Autogreen
environmental program,” says Di Felice.
The Autogreen environmental program
is a CAA SCO initiative to help members
understand the impact their cars have on
the environment and to encourage its
members and motorists in general to
lessen that impact. However, the public
knows very little about end-of-life vehicles
and their impact on the environment.
“We wanted to take a cradle-to-grave
approach on vehicle ownership and we
used the survey as a tool to ask members
what they know,” says Di Felice. “With
Autogreen and OARA it makes a lot of
sense. There are things people can do to
lessen the impact on the environment.
People think end-of-life vehicles are taken
care of properly. This survey helped us
cement our position on policy regarding
vehicle disposal.”
OARA is leading a coalition working
towards a standards-based licensing
scheme for the auto recycling industry.
Other members include CAA, the Canadian Vehicle Manufacturers Association
and the Association of International Auto
Manufacturers of Canada.
At a press conference last summer with
OARA and the CVMA, Nick Parks,
President and CEO for CAA SCO noted,
“An environmental standards based
approach to end-of-life vehicle management is consistent with the CAA’s overall
approach to reducing the environmental
impacts of automobile transportation. It
complements our Autogreen program
which provides our members with
resources and choices to help them
become more eco-friendly drivers. That
the environmental standards approach
means no new costs to automotive consumers is an added bonus.”
The partnering with CAA is an extension of OARA’s industry and public
engagement strategy. “By aligning ourselves with organizations like CAA, the
OEM manufacturers, and key environmental groups, we make our voice
stronger and we are beginning to be
heard,” said Steve Fletcher. ■
Capitol Connection
By Elizabeth Vermette, ARA Director, Government Affairs
[email protected]
Congressional Highlights
Bill to Reduce Design Patent Protections for OEM Crash Parts Introduced in the House
bill introduced in the U.S. House of Representatives
reduces the period during which car companies can
enforce their design patents on collision repair parts against
aftermarket manufacturers. The Promoting Automotive Repair,
Trade, and Sales (PARTS) Act amends title 35 of U.S. design
patent law to reduce the period of design patent protection for
automakers from the current 14 years to just 30 months.
Under the PARTS Act, the 30 month period would commence as soon as a particular car model (containing a design-
A
patented part) is introduced anywhere in the world. In addition, the patent protection period would only apply to the sale
of the parts, allowing aftermarket manufacturers to produce,
test, market and distribute parts pre-sale without infringing
upon the design patents.
PARTS was introduced by House Judiciary Committee
Members Darrell Issa (R-Calif.) and Zoe Lofgren (D-Calif.).
The bill is supported by insurance associations and the Quality
Parts Coalition.
IRS Rules in Favor of Small
Businesses for Tax Year 2012
ARA Supports the Jobs and
Premium Protection Act
n mid-February, Illinois Republican
Congressmen Aaron Schock and
Bobby Schilling introduced the 1099K
Overreach Prevention Act (H.R. 3877),
which would prohibit the U.S. Internal
Revenue Service (IRS) from implementing a new tax reporting requirement included in The Housing and
Economic Recovery Act of 2008. Under
the 2008 Act, the IRS is required to collect a new document known as a 1099K
from third party payment entities, such
as credit card companies. The 1099K will
show all credit transactions with a merchant’s business for a given year.
According to the new bill’s sponsors,
however, the new form would add additional burdens on small businesses by
requiring them to reconcile this report
with the merchants’ own internal numbers, which was not the original intent of
the law.
Senators Thune (R-SD) and Cantwell
(D-WA) have also joined Reps. Schock
and Schilling to permanently remove
this requirement with companion legislation (S. 2083) that will ensure that
should the IRS choose to invoke this provision in the future, small businesses will
remain protected from complying with
this nuisance paperwork provision. ARA
strongly supports these efforts.
T
I
he Jobs and Premium Protection
Act, legislation to repeal the Health
Insurance Tax (HIT) now has more
than 112 co-sponsors. If passed, the bill
will bring relief to millions of small busi-
nesses nationwide, by preventing the
recently passed HIT from collecting billions of dollars from their operations
beginning in 2014.
This is one of several small business
issues that ARA members will be lobbying for on Hill Days in March. ■
State Legislative Sessions in Full Swing
t has been a busy legislative session to date. Forty-four states have been in session and all states meet in 2012 except for the four states that don’t meet in
even number years: Montana, Nevada, North Dakota and Texas. ARA is currently
tracking more than 100 bills across the country related to automotive recycling.
Some examples follow:
Sent letters of support for Colorado HB
STATES ON THE MOVE
1051 sponsored by the Colorado
Automotive Recyclers. Current Colorado law only allows vehicles manufactured
between 2012 and 2007 to be titled as salvage vehicles. Vehicles older than six
years can currently be sold on a clear title even with substantial damage. These
vehicles may be sold through salvage pools, repaired cosmetically and sold to
unknowing consumers who end up driving dangerous vehicles. House Bill 1051
eliminates this exemption and applies the same salvage definition to all vehicles.
Status: Bill died in committee.
Sent letters of support for New Mexico SB 122 sponsored by the New Mexico
Automotive Recyclers and LKQ. SB 122 prevented unlicensed and untrained individuals from purchasing vehicles at salvage pool auctions. Status: Bill was moved to
a study committee.
Sent letters of opposition for Ohio SB 273 that eliminates the BID card in Ohio.
Status: Opponent testimony scheduled for March.
Sent letters of opposition for Hawaii HB 2326 that would have required insurance companies to only use new OEM parts in all collision repairs if a vehicle was
under warranty. Status: Bill removed from committee agenda and died.
I
Crossword Puzzle
By Murray Jackson
Across
1. ‘09 Chevrolet crossover
5. Long dragster with minimalist body
9. Bright tuner-car trim, slangily
10. Rock group's tour-bus passengers
11. Main or Sesame
12. Ominous engine sound
14. ‘66-'74 Lotus sports coupe
16. Treadless dragster tires
19. “Miami Vice” Caddy-ragtop driver
21. Item in 20-Down vehicle
24. Car-body style (3,4)
25. Chopper rider
26. Cadillac color in Springsteen song
27. Corvette model
Down
1. Item once found in car tire
2. ‘03-’05 Lincoln SUV
3. Former AMC and Chrysler brand
4. Mr. MacPherson’s suspension inventions
6. Defunct Isuzu for a Spanish pal
7. ‘60s “Screamin’ tires and bustin' glass” song (4,4)
8. Surname, rotary-engine inventor Felix
13. Brief road-trip pause (4,4)
15. Engine item with skirt and rings
17. Defunct Kalamazoo-based taxi maker
18. ‘80s AMC and ‘90s Dodge model
20. UPS truck color
22. Batmobile occupant
23. A&W carhop’s cargo, once
2012 Industry Calendar
To include your event in ARA’s calendar of events,
e-mail the complete listing to [email protected].
Visit www.a-r-a.org for the most up-to-date calendar.
March
April
14-16
ARA 2012 Hill Day - Business
Development Conference
Elizabeth Vermette
(571) 208-0428, Ext. 18
[email protected]
www.a-r-a.org
12-15
2012 URG/Pinnacle
Training Conference
The Inverness Hotel
Englewood, CO
(800) 346-4891 or (800) 397-6400
Group Code: 2PL1U7
Michelle Alexander
(303) 367-4391
[email protected]
15-17
Greater Midwest Automotive
Recycling Expo
Holiday Inn Downtown
Lincoln, NE
www.ari-ne.org
21-23
12th International Automobile
Recycling Congress
Hotel InterContinental
Budapest, Hungary
Phone: +36 1 327 6333
Fax: +36 1 327 6357
www.ichotelsgroup.com/
intercontinental
Contact: Claudia Gerstendoerfer
Phone: +41 62 785 10 00
www.icm.ch/iarc-2012
23-24
IT Show
Location: M & S Auto Parts
155 Roberts Rd.
Fayetteville, GA 30214
Contact Bill or Susan Weaver
(800) 525-2898
[email protected]
www.meetusatit.com
29-31
Ontario Automotive Recyclers
Association OARA Annual
Convention & Trade Show
Toronto Airport Marriott Hotel
Reservations: (800) 905-2811
Information: Steve Fletcher
(519) 858-8761
[email protected]
A limited number of rooms have been
reserved for the Convention at the
Marriott Toronto Airport Hotel.
Please contact the hotel directly at
1-800-905-2811 and quote the “Ontario
Automotive Recyclers Association” to
receive the group rate of $129 per night.
The group rate is subject to availability
and is valid until March 9, 2012.
19-22
Florida Tow Show
International Expo
Orlando, FL
Host Hotel: Hilton- (407) 827-4000
Information (407) 296-3316
www.pwof.org
20-21
Automotive Recyclers of
Michigan (ARM) 4th Annual
Road Show & Business
Networking Conference
Location: Fox Auto Parts
8111 Rawsonville Rd.
Belleville, MI 48111-9317
Barb Utter
(800) 831-2519
[email protected]
21-22
Saskatchewan Automotive
Recyclers Association (SARA) &
Automotive Recyclers of
Canada (ARC)
Member & Board Meetings
Regina Hoiymr
(306) 751-1787
www.autorecyclers.ca
24-26
2012 SAE World Congress
The Essential Automotive
Technology Event
Cobo Center, Detroit, MI
www.cobocenter.com
Phone: 1-877-606-7323
(USA and Canada)
Or: 1-724-776-4970
(outside of USA and Canada)
Fax: 1-724-776-0790
E-mail: [email protected]
Detroit Marriott at the
Renaissance Center
100 GM Renaissance Center
Detroit, MI
27-28
Alberta Automotive Recyclers &
Dismantlers Association
Meeting and Conference
Chateau Louis Hotel and
Conference Centre
Edmonton, Alberta
Ian Hope
(780) 478-5820
www.aarda.com
Ad Index
Actual Systems of America, Inc./Pinnacle .........35
Alter Trading Corporation ......................................29
ARA University..........................................................15
ARA 69th Annual Convention & Exhibition ........13
Biz Unite.....................................................................21
Brock Supply Co. .....................................................32
Car-Part.com..........................................................C-4
Connection, The .........................................................5
CRUSH/S3 Software Solutions, LLC.....................48
Federal Autocat Recycling .....................................37
Hybrid Vehicle Dismantling Guide........................17
Hollander, a Solera company ............................ C-3
Industrial Netting.....................................................31
Knopf Automotive ......................................................6
Lamb Fuels ...............................................................42
MarkingPenDepot.com...........................................60
Mike French & Company, Inc. ................................51
OmniSource ..............................................................57
Phoenix Automotive Cores ....................................45
RAS .............................................................................41
Sierra International Machinery ..............................9
Supershear ................................................................31
United Recyclers Group........................................C-2
Vander Haag’s, Inc...................................................65
Wells Fargo................................................................11
Get Ahead in 2012
Empowering Your Team
To advertise, call Caryn Smith at
(239) 225-6137
Answers from Puzzle on page 60
27-28
Upper Midwest Auto &
Truck Recyclers Convention/
Trade Show
Ramada Plaza Minneapolis
For reservations:
www.ramadaplazampls.com
1330 Industrial Blvd.
Minneapolis, MI
www.recyclersconvention.com
28
BC Auto Recyclers
(B-CAR) Meeting
Ken Hendricks
(604) 419-4826
www.ara.bc.ca/div-bcar
Location: TBD
Send your 2012 events for the Industry Calendar
to [email protected].
March-April
March-April2012
2012 | Automotive Recycling 65
Final Thoughts
By Michael E. Wilson, ARA Chief Executive Officer
[email protected]
Safety First
s part of our on-going commitment
to health, safety and the environment, the Automotive Recyclers Association (ARA) is moving forward with the
formation of a new “Safety Committee.”
The establishment of this Safety Committee comes after extensive discussions
about how best to support ARA members in their efforts to provide safe workplace environments for their employees.
Members of this committee will review
recent safety-related developments in
the automotive recycling industry and
promote plans to help members address
these issues.
ARA will also represent the interests of
automotive recyclers to the U.S. Occupational Safety and Health Administration
(OSHA) as new safety standards are
established. In fact, just this past January,
OSHA issued a White Paper supporting
the development of a standard requiring
Injury and Illness Prevention Programs
(I2P2) claiming that research indicates
that such programs reduce injuries, illnesses and fatalities. Based on this
research and analysis of employee safety
data, OSHA also has taken the first step
toward drafting a proposed rule establishing an I2P2 standard which will most
likely be published sometime later this
year. If developed and implemented, this
I2P2 rule has the potential to significantly alter the core of today’s business
safety programs.
Also, the Safety Committee’s importance is reinforced by recent related
events in the industry. Over the past several months, OSHA has initiated several
local initiatives to address safety compliance within industries which have been
identified as having a higher number of
serious hazards based on the number of
violations during an OSHA inspection.
A number of automotive recycling facilities in the Northeast region of the
iStockphoto.com/jinglv li
A
United States and other locations
around the world have had several thousands of dollars in fines issued for failing
to meet requirements related to workplace safety inspections.
In light of these circumstances, the
Committee will hit the ground running
by reviewing and developing safety alerts
on compliance issues that have been
identified as areas of concern during
recent OSHA inspections at automotive
recycling facilities. To date, the highest
level of activity has taken place in the
Northeast. However, it is likely that
OSHA’s compliance and enforcement
actions will extend throughout the
United States.
It is important to note that the role and
importance of the Committee’s work will
go beyond the borders of the United
States. In February, the press reported
that the Canadian Centre for Occupational Safety and Health (CCOSH), the
equivalent agency to OSHA in the U.S.,
had placed a stop work order at one
Alberta facility.
The efforts of this new Safety
Committee will complement the efforts
already undertaken by ARA and our
Educational Foundation (ARAEF) on
safety awareness and education. Earlier
last year, ARA University added new safety courses encompassing topics such as
fall protection, personal protective
equipment, hand power tools, scaffolds,
hoists and stairways. This month, the
ARA University is set to release an additional eight courses that will include
modules covering Aerial Lift Safety, Back
Safety, Bloodborne Pathogens, Electrical
Safety, Hearing Safety, Hoists & Slings,
Lockout Tagout, Machine Guarding and
others.
Safety education has also been showcased at our recent Convention &
Exposition in Charlotte, during which
ARA held two safety educational sessions
related to safety management and yard
layout. It is anticipated that the number
of safety sessions will expand to four at
this year’s event to be held in Orlando,
Florida. Additionally, ARA with the support of Wells Fargo Insurance Services
(WFIS) released our revised “Employee
Safety Brochure” that contains guidelines that if properly and consistently
implemented, should diminish unsafe
operations and reduce accidents. In
2012, ARA and our endorsed insurance
provider, Wells Fargo Insurance Services,
plan to also provide a Spanish version of
this important safety resource.
In this era of instant communication
and availability of site-specific data, it is
crucial that one knows exactly what safety standards and regulations apply to
your facility and adequately address
them. ARA continues to provide the
tools to help keep members and their
employees safe while working to protect
and promote your businesses. From the
emergence of this new committee and
the Foundation’s courses to the educational sessions at our convention, your
ARA is here to support your safety needs.
I look forward to offering ARA members
yet one more reason to continue to be a
part of such a great group of business
leaders. ■
Automotive Recyclers Association
9113 Church Street
Manassas, VA 20110-5456 USA

Automotive Recyclers Association ARA

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