Key Facts
On April 24, 2025, the Japan Auto Body Repair Cooperative Federation (JABRCF), an industry group representing approximately 4,000 small- to medium-sized auto repair shops across Japan, announced the successful conclusion of negotiations with Tokio Marine & Nichido Fire Insurance Co., the largest non-life insurance company in the country. The negotiations, which focused on increasing repair labor costs for damaged vehicles, resulted in an agreement to raise the standard unit price for repair work by an average of 18.8% nationwide starting in July. According to JABRCF officials, this increase could enable a wage hike of approximately 6% for repair workers, though the exact impact may vary by region and individual repair shop.
The negotiations marked a significant milestone, as it was the first time in 30 years that JABRCF engaged in collective bargaining with major insurers. Historically, repair costs have been determined through direct negotiations between individual repair shops and insurance companies. However, this process often left repair shops at a disadvantage, with many voicing concerns that low labor costs hindered their ability to improve worker conditions. Rising costs of materials and labor in recent years have further strained the industry, prompting JABRCF to advocate for a collective approach to address these challenges.
The agreement with Tokio Marine is expected to set a precedent for similar discussions with other major insurers. JABRCF had been negotiating with four leading non-life insurance companies, seeking to address long-standing issues in the industry. The outcome of these talks is seen as a step toward improving the financial sustainability of repair shops and enhancing the working conditions of repair technicians.
For more details, visit the original article: Tokio Marine & Nichido Fire Insurance Co. Reaches Agreement with Auto Repair Industry Group.
On April 24, 2025, the Japan Auto Body Repair Cooperative Federation (JABRCF) announced a landmark agreement with Tokio Marine & Nichido Fire Insurance Co., Japan’s largest non-life insurer. The deal, which concludes collective negotiations for the first time in 30 years, will raise the standard unit price for vehicle repair labor by an average of 18.8% nationwide starting in July. JABRCF, representing around 4,000 small- to medium-sized auto repair shops, stated that this increase could allow for a 6% wage hike for repair workers, though the impact may vary by region and shop.
Historically, repair costs were negotiated individually between repair shops and insurers, often leaving shops at a disadvantage. Rising material and labor costs in recent years have further strained the industry, prompting JABRCF to pursue collective bargaining to address these challenges. The agreement with Tokio Marine is expected to set a precedent for similar discussions with other major insurers, as JABRCF continues negotiations with three additional companies. This development is seen as a step toward improving financial sustainability for repair shops and enhancing working conditions for technicians.
For more details, visit the original article: Tokio Marine & Nichido Fire Insurance Co. Reaches Agreement with Auto Repair Industry Group.
