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Schostak looks to take Olga’s back to the future, Page 3 AUGUST 29 - SEPTEMBER 4, 2016 Wayne State ponders doc noncompetes COOL Opponents question legality of pacts for medical faculty PLACES By Jay Greene that we are considering, but to date [email protected] we have not changed any policies,” TO WORK A fight is brewing at Wayne State Wayne State said in a written state- University Physician Group over a ment. proposal that would require more The proposal comes as UPG and 75 than 500 physician faculty mem- Wayne State are in negotiations over bers to sign a noncompete agree- contracts for services provided to ment. Detroit Medical Center and could Wayne State University in Detroit crimp efforts by competing medical has floated a draft of a noncompete groups or health systems to hire contract that it expects the physi- those doctors if those talks fail to cians to sign by Jan. 1 or face possi- bear fruit. UPG and the Wayne State ble disciplinary action or termina- Medical School are also in the mid- tion from the faculty medical group, dle of their own cost-cutting and Crain’s has learned. turnaround plan. Officials for Wayne State, who de- Charles Parrish, president of the clined several interview requests, American Association of University said in a statement to Crain’s that Professors-AFT Michigan Local 6075 “noncompete agreements are a at Wayne State, said the proposal is standard practice” for medical “draconian,” possibly violates the groups. Wayne State acknowledged Public Employment Relations Act that UPG never required one before. and the union’s collective bargain- “We are considering noncom- ing agreement and is an unfair labor pete agreements for our clinical fac- practice. He said he is consulting ulty. We’ve received some feedback SEE WSU, PAGE 28 New U.S. import tari galvanizes steelmakers By Dustin Walsh said Vice President Michael Barnett. [email protected] The company has an inventory of Grand Steel Products Inc. avoided 20,000 metric tons of steel and ex- the fate of so many other steel com- pects to generate revenue near $50 panies in recent years and is now million this year. flourishing, thanks to new U.S. im- The U.S. Department of Commerce port regulations. imposed duties this year on imports The Wixom-based steel service of rolled steel, used to make auto center and distributor is the benefi- parts, appliances and equipment, ciary of the lifeline offered to U.S. from seven countries including Chi- steelmakers this year by way of an na, which received the biggest tariff. It takes a lot to be cool. And especially for import tariff designed to punish Preliminary duties began early this dumping, or selling steel below cost, year and became final on July 21. employees to agree their workplace is cool. But by foreign steel companies to gain “China has been overproducing aer a vigorous judging process including an U.S. market share. steel for years, way too much for employee survey, these 75 companies reign For Grand Steel, it was a lifeline. their own market and even the glob- supreme. Find out how they built such enviable In the first half of this year, the al market,” said Kevin Dempsey, se- company has made more profit nior vice president of public policy workplace cultures that include exibility, than in 2015 and 2016 combined, SEE STEEL, PAGE 26 empowerment and eective relationships. SPECIAL REPORT, PAGES 11-21 © Entire contents copyright 2016 by Crain Communications Inc. All rights reserved CHRIS MORRIS FOR CRAIN’S crainsdetroit.com Vol. 32 No 35 $2 a copy. $59 a year. Nurturing rapidly growing businesses NEWSPAPER 2 CRAIN’S DETROIT BUSINESS // AUGUST 29, 2016 playing a chess game where you’re be found in New York City, although MICHIGAN just moving pieces back and forth,” he the company is hoping to expand. INSIDE said. “Nobody is making a move yet.” n Gov. Rick Snyder is challenging THIS ISSUE The Rapid expects it could receive a court order that bars McLaren Hos- BANKRUPTCIES ...............................29 the needed funds in the coming pital in Flint from contacting state CALENDAR ........................................24 month or the money could be split health authorities on any future issue CLASSIFIED ADS ..............................25 up into different years, depending on related to the city’s water woes, AP re- DEALS & DETAILS ............................24 how the federal appropriations pro- ported. The Aug. 17 order by a Gene- KEITH CRAIN.......................................8 OPINION ..............................................8 BRIEFS cess plays out, said Monoyios, who see County judge has “tied the hands OTHER VOICES ...................................8 ties, Pew said. Michigan was not recently met with Federal Transit Ad- of state employees” to protect the Report: Mich. among states PEOPLE ..............................................24 among them; the state paid more officials. public, Snyder said. The order tells that underfunded pensions ministration RUMBLINGS ......................................30 than $2.4 billion, or 88 percent of a McLaren to talk only to the county WEEK ON THE WEB .........................30 A majority of states, including recommended $2.8 billion, in 2014. MICH-CELLANEOUS health department on Flint water-re- Michigan, did not contribute enough Pew’s report is an effort to get an n Daughters in two Grand Rap- lated matters. A spokesman for the COMPANY INDEX: to their employee pension systems accurate measure on states’ ability ids-area family-owned empires are attorney general’s office said investi- SEE PAGE 28 in 2014 to reduce unfunded debt, a to reduce pension debt, especially taking on bigger roles in their re- gators are trying to protect health new nationwide analysis shows. given new accounting standards spective companies, MLive.com re- data related to lead poisoning and In a brief released last week, Phil- that took effect in 2014. ported. Christina Keller will lead a deaths from Legionnaires’ disease. n Highland Park-based call cen- adelphia-based The Pew Charitable Lindsay VanHulle division of Cascade Township-based n The Michigan Economic Devel- ter operator Dialog Direct Inc. decid- Trusts said pensions in all 50 states Cascade Engineering, the company opment Corp. awarded new contracts ed to shutter its Grand Rapids-area were underfunded by $934 billion in W. Michigan transit o cials started by her father, Fred Keller; and to the advertising and public rela- operation in Cascade Township and the 2014 fiscal year, the most recent Kara Gordon Warren, daughter of tions firms that developed the mar- lay off 106 workers by Oct. 17 after for which data is available. Accord- uncertain over funding CEO Jim Gordon, is joining the cor- keting for the state’s Pure Michigan losing a key contract, MiBiz report- ing to Pew, Michigan had funded Political pressures in Washington, porate board in October at Wyo- travel campaign. The state awarded a ed. The company is working with two-thirds of its nearly $84.6 billion D.C., have created uncertainty for ming-based Gordon Food Services. $25.2 million contract to McCann Er- the Michigan Economic Development in pension liabilities that year, with transit officials looking to fund a Warren, now assistant general man- ickson, which has an office in Bir- Corp. to repay $272,000 of a $550,000 $28.1 billion in debt. new West Michigan bus rapid tran- ager, will become general manager mingham, for the travel campaign. performance-based grant awarded The state also fell short of a new sit line, MiBiz reported. Despite for GFS’ Florida Division next April. As The contract begins with the start of in 2014 when it announced the fa- benchmark Pew researchers devel- having announced the route be- president of Cascade Business Team, the new fiscal year on Oct. 1 and cility’s creation, the MEDC said. oped to determine how much states tween downtown Grand Rapids and Keller will oversee nearly half of Cas- runs through Sept. 30, 2017, with n Fans of Michigan’s Adventure in should contribute to their employ- Grand Valley State University’s Allen- cade Engineering’s nine businesses. four, one-year renewal options. Mc- Muskegon will have a new way to ees’ retirement funds to reduce their dale campus more than three years n An international tea franchise Cann Erickson also won a $7.5 mil- cool off next summer, MLive.com unfunded obligations. Under Pew’s ago, officials with the Interurban based in London has chosen East lion contract to continue business reported. The park’s Half Pint Para- “net amortization” metric, which Transit Partnership, known as The Lansing as the base of its North marketing services for the state. Mc- dise will feature all-new equipment, aims to determine whether a state’s Rapid, say plans for the proposed American operations, the Lansing Cann’s sister firm, Weber Shandwick, including seven new children’s payment into its retirement systems Laker Line are in a holding pattern. State Journal reported. Newby Teas, was awarded a nearly $2.2 million slides. To commemorate its 60th an- is adequate after accounting for Until Congress appropriates the which has 15 offices in Europe and contract to continue PR and social niversary, the park will open a pet- benefits costs and employees’ con- funds, there’s no money in the bank Asia, has opened its U.S. office in- media work for the MEDC. Both ting farm. Michigan’s Adventure is tributions, only 15 states paid yet, said Nick Monoyios, long-range side a Marriott hotel. The luxury companies are part of McCann owned and operated by Sandusky, enough into the system to cover planner for The Rapid and the project brand sells tea and gifts inside high- Worldgroup, a subsidiary of New York Ohio-based Cedar Fair Entertainment costs and reduce unfunded liabili- manager for the Laker Line.

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