Regulatory Compliance -- Turn A Pain Into A Gain by Mathew Raikes Quality work is the cornerstone of every successful business. Therefore, successful businesses must strive to differentiate themselves from the competition in other ways. Regulatory compliance can be one of the tools to build customer confidence and show your commitment to "do it right," not only in workmanship, but also in other areas.
Regulatory compliance in the automotive service industry is viewed by shop owners and managers with varying levels of importance. There are, however, significant issues facing the industry. For example, although the long-awaited National Rule on volatile organic compounds (VOCs) focuses on paint manufacturers, collision repair businesses must still contend with state and local requirements. The regulations and potential changes in shop operations, equipment and permit requirements can vary widely from state to state and even county to county.
Both collision repair and mechanical shops have common concerns when it comes to compliance. What many do not realize is that regulatory compliance efforts can be turned to their advantage in terms of customer and employee relations, insurance and general safety. Compliance efforts generally take place out of sight (if at all) because they are not "glamorous," however, customers are often interested in knowing that a shop is taking those extra steps to be safe.
Doing what's required helps differentiate you from your competition. Conduct compliance activities in a way that not only meets the letter of the law, but can be used to your advantage as employee and public relations benefits. When selecting a third-party vendor for compliance assistance, ask what type of materials (certificates, for example) they can provide to help you market your business. Make sure they view compliance activities as something to be publicized and taken advantage of on an ongoing basis, not just something to "get out of the way" once a year.
Shop owners and managers reap the added benefits of increased safety. Employee training, such as Hazard Communication (commonly known as "Right-to-Know"), should be presented as an important employee benefit. Explain to existing and new employees that you are conducting this training out of care and concern for their well being, investing both time and money to make the shop a safer place. Remind them that much of the information presented can be applied outside the workplace and even in their own homes.
From increased safety, shop owners and managers can also reduce insurance costs, incur fewer lost workdays and increase productivity. In medium to smaller shops, even the temporary loss of a key person can devastate production schedules.
In the collision repair market, many insurance companies are now allowing a $3 to $5 charge per job for such things as hazardous waste disposal. If the insurance companies you work with do not allow this type of charge, it still does not hurt to show it on your customer's invoice (even as "no charge") to bring attention to your efforts.
Get additional mileage from compliance activities by publicizing your efforts. Post safety or compliance certificates and awards as prominently as you do other education certifications. Your customers will understand and appreciate your efforts to increase safety in the workplace and the environment. Keep your insurance agent informed of your activities and ask about discounted premiums for taking these important steps.
Avoid Common Mistakes
What are some of the most common regulatory violations faced by the automotive service industry? Surprisingly, the most common violations stem from failure to comply with regulations that many shop owners are already aware of, rather than lesser known or more difficult regulations.For example, even though the industry has been saturated with how-to books, videotapes, kits, seminars and tons of bulk mail advertising, Right-to-Know has remained one of the Occupational Safety and Health Administration's (OSHA's) top violations for nearly 10 years.
Most shops have already spent time and money attempting to comply, and yet it's still the No. 1 violation. Why? Not because it is a difficult requirement, but because many shops think they are in compliance if they purchase a 600-page, three-ring binder with lots of samples and information. You may have one of these books somewhere in your shop right now. Unfortunately, that does absolutely nothing to bring you closer to compliance.
These "off the shelf" books fail to meet regulatory requirements because they are not site specific. To be in compliance using these materials, you must make yourself an expert, rewriting the sample documents they provide, requesting copies of your Material Safety Data Sheets (MSDSs) from vendors and conducting both initial and annual training for all your employees. If you don't do those things, that big binder is just an expensive doorstop -- and it will get more expensive when OSHA knocks on your door.
Required training must be conducted before a new employee begins work and at least annually for existing employees. Don't forget to properly document all of your training activities, from sign-in logs to copies of all training materials, because if you can't prove it, it didn't happen.
Many employers choose to use a videotape for initial training, then hire an outside company to conduct "live" annual training. If you are unsure of compliance requirements or how to turn mandatory training into an employee benefit, using the right outside source is a good choice.
A few other top violations are simple things such as:
- Failing to properly maintain portable fire extinguishers (or not having them at all!). Portable fire extinguishers must be the appropriate type and professionally serviced once per year. On a monthly basis, you or one of your employees must visually check the extinguisher, ensuring that it is still present, properly charged and in good condition. The paper tags attached to them aren't just for show, but can be used to document that monthly check.
- Improper storage or handling of flammable or combustible liquids. We learn from an early age to store flammable liquids in properly labeled, sealed containers, and not to smoke when using them. Unfortunately, in the hustle and bustle of a busy shop, it's all too easy to use an improper container or forget to return the gas or paint can to proper storage.
- Failure to properly mark and label hazardous waste containers. Waste containers must be marked with the accumulation starting date, contents and waste identification numbers.
- Improper respiratory protection or failure to have a written respirator plan. The respirator you select must be appropriate for the hazard and task. The employee must know how to properly fit, maintain and store the respirator. And most importantly, the employee must wear the respirator. The written plan must cover such things as how to choose a respirator, medical evaluations and maintenance schedules.
Be aware that many of OSHA's safety standards are "performance based." That is, if the employee does not know it or does not do it, it's your fault. Inspectors will routinely observe employees, ask questions about the training the employee has received, ask employees if they know what and where MSDSs are and so on. Make sure your employees know the right answers, are doing the right things and are very clear about the fact that they may be "tested" by an inspector without warning. When your employees do right, so do you.
Mathew Raikes is with EnviroSafe Management Systems, Inc., Winnetka, Ill., (800) 619-9733. EnviroSafe is a regulatory compliance company serving the automotive service industry nationwide since 1989.
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AutoInc. Magazine ®, Vol. XLIV No. 10, October 1996