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Thread: Repackaging the point to suit

  1. #1
    Site Caretaker Dave A's Avatar
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    Repackaging the point to suit

    It looks like there is a fair amount of friction in the panel-beating industry at the moment. What I find fascinating in this story is how a quality system issue is being repackaged to suit the argument of the complainants.
    A race row in the panel-beating industry is reaching boiling point, and regulatory bodies warn an amicable and lasting resolution seems a long way off.

    Several black-owned and smaller white panel-beating companies belonging to the South African Repairer and Salvage Association (Saarsa) say transformation in the industry has hit deadlock and they have been cut out of business.

    But the other body in the industry, the South African Motor Body Repair Association (Sambra), has hit back, saying it had members of all colours, who secured work because they were skilled and had the best equipment.

    Saarsa claims the insurance companies' list of preferred service providers - known as a panel system - is weighted heavily in favour of large, white-owned companies, all of which belong to Sambra.

    Saarsa members are also unhappy about the nationally set grading system, which effectively limits the scope of work a shop may complete.

    They claim systems have been manipulated to ensure the large white-owned companies get the most lucrative jobs, leaving black-owned companies and many small white-owned companies out in the cold. As a result some are being forced to close or downsize.
    (and further down the article)
    "We don't want this to be perceived as reverse racism - this is blatant economic discrimination. We are calling for a complete rehabilitation of this industry to ensure smaller role players can also trade in this environment."
    full story from IOL here
    The complaint is about access to markets.

    The constraint is the capital expense required for the right equipment to meet quality standards.

    I reckon the rest is spin.

    What do you think?
    Last edited by Dave A; 01-Feb-09 at 11:49 AM.

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    Graeme (01-Feb-09)

  3. #2
    Diamond Member wynn's Avatar
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    And not one of the Black or Small businesses asked the big guys for subcontract work?

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