20130902-NEWS--0001-NAT-CCI-CD_-- 8/30/2013 4:41 PM Page 1 ® www.crainsdetroit.com Vol. 29, No. 36 SEPTEMBER 2 – 8, 2013 $2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Taco Bell employee Shanise Stitt pickets at Church’s Chicken in Detroit on Thursday as part of a national walkout demanding New economy, new higher wages. labor movement Declining wages, benefits Music in Detroit stir dismantled unions denotes C-notes BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS Music amounts to a billion- dollar industry in metro n Southeast Michigan, big labor isn’t so big any- Detroit, based on an economic study done for more. Membership is down and Michigan’s recent Crain’s by Anderson right-to-work law may challenge those numbers fur- Economic Group. ther. This special report features I the players of the music However, with Michigan’s hourly wages, adjusted for in- industry, the role of Detroit’s flation, at the lowest rate in more than 30 years, a new labor brand for musicians and companies and what music movement is afoot. Local experts say there is an increase in means for the future of the protests and litigation — the unintended consequences of a car. dismantled union workforce. And it’s going to get worse. Special report starts after Page 10. See Labor, Page 17 ASSOCIATED PRESS Page 3 Workforce grows via temps, part-timers BY ROSS BENES maternity leave. He could be hired full SPECIAL TO CRAIN’S DETROIT BUSINESS GO FIGURE time, but that remains uncertain, he said. Cook said he has good leads for his next Sean Cook is growing weary of the Jobless no- — he hopes — more permanent position. man’s-land temp worker merry-go-round. “I didn’t have a whole lot of luck in the Sean Cook is skews data, Cook, 30, was laid off from Clinton first half of the year. … Then in July LON HORWEDEL grateful for the Township-based publisher Tweddle Page 16 temporary work things picked up. I got offered a job by Kar- Group in January where he worked as a Lions revenue game plan: he’s gotten manos at the same time I got offered a since being laid video editor. Then, after a short bout of job- valet position at the Broderick Tower.” stadium seats or couch off in January, lessness, he landed a temporary gig as a me- He also is pursuing a potential job as an editor but he really dia services technician at Barbara Ann Kar- with a Detroit video production company. wants a manos Cancer Institute. The job lasts until New GM supplier contracts: permanent job. December; he’s filling in for an employee on See Temps, Page 16 Ch. 11 honeymoon’s over KENNY CORBIN Inside Community Foundation to No longer holding back: St. John plans dozen capital projects manage $54M in charity assets raised by DMC, BY JAY GREENE years, the Warren-based, five-hospi- mance dipped jects — except on emergency de- CRAIN’S DETROIT BUSINESS tal Roman Catholic system will through 2008- partments — and invested more in Page 4 spend $140.5 million on capital pro- 2010. It was im- physician development, medical Building a 32-bed adult unit at jects in fiscal year 2014 that began portant to be con- equipment and information tech- Providence Park Hospital, moderniz- July 1 and a total of $190.8 million servative about nology. Despite Senate OK, ing a neonatal unit at St. John Hospi- over two years for those projects, St. what financial One exception is Detroit Medical Medicaid bill still not tal and Medical Center and upgrad- John CFO Patrick McGuire said. commitments Center, which was infused with ing telemetry equipment at The capital spending for 2014 is you make,” $850 million for designated con- in the clear, Providence Hospital are three of more than double the $60 million St. McGuire said. struction and capital improve- more than a dozen capital projects John spent in fiscal 2013, he said. Since the 2008 ment projects by its new owner, planned over the next year at St. Capitol Briefings, Page 7 “We were holding back on spend- McGuire recession, some for-profit Vanguard Health Systems. John Providence Health System. ing for a couple of years because hospitals have Flush off two “solid” financial most systems’ financial perfor- scaled back on construction pro- See St. John, Page 14 Learn how creating personal c AWARDS relationships at the OCT. 2 io executive level plays a key role 3 – 8 p.m. TITLE SPONSOR in executing business strategy. The Inn at St. John’s, Learn more at crainsdetroit.com/events Plymouth NEWSPAPER 20130902-NEWS--0002-NAT-CCI-CD_-- 8/30/2013 3:24 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS September 2, 2013 MICHIGAN BRIEFS New biz conference to bring Boarding soon on Amtrak: The Wi-Fi … limited attendees to workplaces BY AMY HAIMERL Space (design and architecture- If you are one of those people who appreciates the riders are expected. CRAIN’S DETROIT BUSINESS related incubator housed in a for- more leisurely pace of travel by train — notwith- Amtrak gets state and federal subsidies and has mer Corktown autobody shop); standing delays that seem to take longer than, say, three Michigan routes: the Blue Water from Port A new business conference is The Empowerment Plan (coats and fully vesting in your company’s pension plan — and Huron to Chicago, the Pere Marquette from Grand preparing to show off Detroit employment for the homeless); how riding the rails lets you unplug from a world Rapids to Chicago and the Wolverine from Pontiac from the inside out. and The Work (creator of the video gone frenetic, we have some potentially bad news: to Chicago. Rather than hosting CEOs and for ESPN X Games to Detroit bid). Amtrak riders in Michigan will be able to connect to To avoid crashing the network, passengers will be panel discussions in stuffy ball- The one-day conference on Wi-Fi next year … for free. restricted from streaming videos and downloading rooms and boardrooms, OpenCo Sept. 12 is free. For priority ac- The Michigan Department of Transportation is spend- files larger than 10 megabytes, MDOT said. Amtrak Detroit is bringing attendees di- cess, there is a $100 VIP ticket ing about $1 million to install Wi-Fi on the state’s had 793,000 passengers in Michigan last year, gener- rectly into the offices, studios that gives entry to a launch party Amtrak trains by January, MLive.com reported. ating $27.8 million in revenue. and art spaces fueling the city’s the night before. Improving Internet access should increase rider- Also last week, Amtrak said bicycles would be ac- tech-driven resurgence. Detroit is the fourth city to host ship and produce higher revenue that would more cepted aboard Blue Water trains starting Friday for “We’ve gone through and done an OpenCo conference, which than offset the cost, department spokesman Nick an additional $10. No word when Amtrak will accept the heavy lifting and picked the John Battelle, founder of Federat- best and brightest and most inno- Schirripa said. He could not say how many more cars on board. ed Media Publishing, launched last vative companies in Detroit,” fall in San Francisco. The mix of said Jason Gole, co-chair of Open- business conference-meets-open- Rob Crane, whose Crane Orchards board of trustees voted to merge Co Detroit and president of 313 Predictions of big crop get juices studio tour then made its way to in Fennville opened its U-pick sea- the school’s Kendall College of Art Digital. “... This is giving everyone New York and London. flowing for state apple growers son over the Labor Day weekend, and Design into the nonprofit Urban the opportunity to ... gain access The entire list of businesses One year after weather just told The Holland Sentinel: “We’re Institute for Contemporary Arts in you wouldn’t normally have.” represented — and what their about wiped out the state’s apple normally open 60 to 70 days every Grand Rapids. The institute will On showcase are a variety of presentations will include — can crop, apple growers predict a big season, but last year we were open become a wholly owned subsidiary firms from across industries, in- harvest on the cusp of cider mill for six.” of Kendall. MiBiz has reported that cluding Crain’s Detroit Business be found at det.openco.us. Partici- season. The Michigan Apple Commit- the institute was $3.9 million in and parent Crain Communications pants can create their own sched- tee said an estimate of about 30 MICH-CELLANEOUS debt. Inc.; Atomic Object (mobile apps ules or there will be a handful of million bushels was announced Ⅲ Officials at Michigan State Uni- and software development); Bam- tours, including one hosted by last week at a USApple Outlook Ⅲ Former Gov. John Engler will versity said last week that the incom- boo Detroit (new co-working space the Urban Innovation Exchange and meeting, The Associated Press re- lead the new Michigan Prosperity ing class of freshmen engineering in Brush Park); Detroit Dirt (urban the Detroit Bus Co., as well as an ported. In 2012, the committee Fund Advisory Board for Grand students is the largest in a decade — composting); Detroit Labs (mobile urban agriculture/environment said, only about 3 million bushels Rapids-based private equity firm about 1,300, MiBiz reported. app developer that just took two track arranged by Detroit Dirt. were harvested. Blackford Capital, MiBiz reported. floors in the Lane Bryant Build- The conference is sponsored It would be one of the largest ap- Engler is CEO of the Business Find business news from ing); La Feria Spanish Tapas (small- by Crain’s Detroit Business, Mod- ple crops in state history.