Healthier Businesses Bring Back Pay Raises
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20110919-NEWS--0001-NAT-CCI-CD_-- 9/16/2011 6:28 PM Page 1 ® www.crainsdetroit.com Vol. 27, No. 39 SEPTEMBER 19 – 25, 2011 $2 a copy; $59 a year ©Entire contents copyright 2011 by Crain Communications Inc. All rights reserved Page 3 Tough work Health Alliance Plan eyes Healthier businesses self-funded insurance biz begins on Sphinx founder expands insurance bring back pay raises his dream with new nonprofits exchange Survey: Merit hikes at 3-year high, average 3% BY SHERRI WELCH Last December, when it was for the coming year. “We’re kind BY AMY LANE CRAIN’S DETROIT BUSINESS feeling more confident about the of gauging the economy and try- CAPITOL CORRESPONDENT economy, the staffing company ing to keep pace with what’s hap- Inside Like many companies, Kelly Ser- began layering them back in. pening with the economy.” The wheels are starting to move vices Inc. halted its merit increas- It has since reinstated its 401(k) The employee compensation on a new statewide health insur- es, 401(k) plan contributions, em- match, stock awards, employee an- picture is brightening, according Ann Arbor State Bank plans ance exchange, as outlined by Gov. ployee bonuses and stock awards nual bonuses and merit increases to a newly released American Soci- Rick Snyder last week in his leg- $50M in commercial loans, in 2009 because of the economy. effective July 1 for the 8,000 full- ety of Employers survey. islative message on health and Troy-based Kelly (Nasdaq: time employees at its headquar- Merit increases are at a three- Page 4 wellness. KELYA) intended to add the base ters and all its branch and regional year high, both in frequency and Legislation is expected to be in- pay increases and benefits back locations around the globe. in size, and the number of compa- troduced this week, likely in the in when the economy started to “Things are looking up,” said nies freezing employee pay has Michigan Senate, that will create a improve, said Jane Stehney, man- Stehney, who declined to give spe- framework to authorize the ex- ager of public relations. cific projections on pay increases See Raises, Page 28 change, which WOMEN will be called MI Health Market- place. The ex- TOWATCH change, which would be estab- lished as a non- profit, will serve individuals and Tiger deals deliver small business- es and is man- Hilfinger dated by nation- CEO’s off-field plays are big part of team’s on-field success 20ll al health care reform. The nonprofit would be gov- BY BILL SHEA eral weeks trying getting his team back to Sixteen who set the erned by a board that would be ap- CRAIN’S DETROIT BUSINESS the World Series. MORE TIGERS pointed by the governor and have Going into Friday’s game at Oakland, standard, from corporate the ability to appoint an executive Dave Dombrowski read the bestselling the Tigers were expected to wrap up their The deals: director. There also would be an baseball economics book Moneyball after it first American League Central Division Six key players to academia, Page 13 the Tigers advisory board that would include was published in 2003, title and would begin the best-of-five divi- signed – and representatives of small business, but he doesn’t know sion series playoff Sept. 30. two they This Just In consumers, insurance plan pro- whether he’ll have time Detroit’s return to the postseason is skipped, viders, agents and others. to see the Hollywood largely credited to personnel moves made Page 29 Other issues remain to be film adaptation that by Dombrowski, who also slashed $27 mil- Playoff Bills call for more Internet worked out: conflict-of-interest comes out this month. lion from the team’s player payroll by payoff: Nearly sellers to collect sales tax policies, funding and making sure That’s because the Opening Day to get it to about $107 million. $5M for each the technology of the exchange Detroit Tigers’ CEO, “Overall, the Tigers are improved — game played at Bills are expected to be in- works well. president and general nearly across the board — while cutting Comerica Park, troduced as early as Tuesday Crain’s spoke with the adminis- manager will be too Page 29 that would require more In- tration’s lead on the exchange — Dombrowski busy over the next sev- See Tigers, Page 29 ternet sellers to collect Mich- Steven Hilfinger, director of the igan’s sales tax. Michigan Department of Licensing and The legislation would be Regulatory Affairs — about what’s en- Recent acquisition Doug Fister pitches similar to a New York law visioned. Sept. 5 in a 4-2 win over the Cleveland that requires remote vendors Indians. that have “affiliate” relation- ships in the state to collect Q&A with Steven Hilfinger, Page 26 sales taxes on purchases made by residents of that state from that vendor. Examples include in-state COMING UP businesses that refer cus- Speaker: Steven Hilfinger will talk tomers to the Internet ven- more about Michigan’s proposed dor’s website or arrange- health information exchange at ments in which in-state Crain’s Oct. 20 Health Care Summit. For more information, see See This Just In, Page 2 www.crainsdetroit.com/events. NEWSPAPER MARK DUNCAN/THE ASSOCIATED PRESS 20110919-NEWS--0002-NAT-CCI-CD_-- 9/16/2011 6:19 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS September 19, 2011 ed today to announce the return Blue Cross had projected first- 2010 with a disclosed value of NOMINEES SOUGHT THIS JUST IN of automotive manufacturing op- year sales of 30,000. $29.4 billion. erations to its Detroit campus While Simply Blue products Suppliers accounted for 50 per- FOR REAL ESTATE AWARDS ■ From Page 1 through a space and employee are similar to other plans offered cent of the deals, mostly driven Crain’s is seeking nominees from leasing agreement with Android In- by Priority Health and Health Al- by market consolidation, the the real estate industry to be businesses sell products through dustries LLC. liance Plan of Michigan, Dunn said analysis noted. recognized for their work. the Internet company. Android is leasing about 70,000 the Blues’ decision to cut rates 5 Europe was the most active re- The deadline for nominations for A study commissioned by the square feet from Focus: Hope for percent to 20 percent compared gion in the deal space, represent- the Real Estate Excellence Awards Michigan Retailers Association and assembling headliners and sus- with older products have ap- ing 42 percent of global deal vol- has been extended to Sept. 27. released last week estimated that pension modules for the Chevrolet pealed to policyholders. About ume. However, deals in North Awards will be presented at the Michigan would see a $35.9 million Volt for delivery to the nearby Gen- 20,000 policies are from new cus- America represented 51 percent University of Michigan/Urban Land increase in sales and use tax rev- eral Motors Co. Hamtramck assem- tomers, he said. of the deal volume, led by foreign Institute Real Estate Forum Nov. 9 and 10 in Detroit, and winners will enue if a state remote vendor affili- Simply Blue offers four de- investment. bly plant. discuss the state of commercial ate law were to increase tax rev- Focus: Hope is leasing 18 em- ductible plans that range from — Dustin Walsh real estate at the event. enue as much as in New York. $500 to $2,500, with office co-pay- ployees — some them came The awards highlight leadership Overall, the Public Sector Consul- through its educational programs ments that range from $20 to $30. United Solar eyes World Cup and accomplishments in the real tants Inc. study estimated that — to Android. The Simply Blue Health Reim- estate community of metro Detroit, Michigan will lose out on an esti- “We’re also referring some of bursement Account has de- United Solar, a subsidiary of focusing on a person’s impact on mated $141.5 million in sales tax our students to their Warren op- ductibles that range from $1,000 Auburn Hills-based Energy Con- the industry. from electronic remote sales in eration,” said Kathy Moran, Focus: to $4,000. Co-pays are $30 for of- version Devices Inc. (Nasdaq: To nominate someone, please visit 2012. And an estimated $147.5 mil- Hope’s communications manag- fice visits. ENER), will embark on a project www.crainsdetroit.com/nominate lion will go uncollected from other er. “We hope that people in our — Jay Greene this month that could lead to in- or contact Senior Reporter Daniel remote vendors, such as catalog immediate neighborhood will be stalling solar systems on all the Duggan at [email protected] or (313) 446-0414. and mail-order companies. able to get jobs here, and … we’re M&A up in first half of 2011 soccer stadiums in Brazil that The retailers association wants looking for opportunities for peo- will be used in the 2014 World to rectify inequity between brick- ple who are in our educational While economic worries have Cup tournament. and-mortar retailers, which must programs.” stalled automotive merger and United Solar will provide an add on Michigan’s 6 percent sales — Sherri Welch acquisition activity going into array of solar laminates to pro- CORRECTION tax; and Internet, mail-order and the fall, deals were up during the duce 238 kilowatts of power at the first half of 2011. 32,000 seat Estadio de Pituacu in Ⅲ In the Health Care Hero story catalog sellers, which do not. Simply Blue is Blue Cross’ about Robert Levine on Page 34 of The bills will be sponsored by In the first six months of the Salvador, a project that is sched- year, 303 deals closed globally uled to be completed in Decem- the Sept.