www mma net org Michigan Manufacturing NOV DEC Vol XXI

www.mma-net.org Michigan Manufacturing NOV | DEC 2008 Vol. XXI No. 6 4 10 Features Preview of a Bigger, Bolder, Better MMA MMA’s new CEO shares his vision for the future of the association. Smart Compensation Strategies for Tough Times How to “right-size” your compensation program to align compensation with contribution. 13 16 MMA Lawyers Committee Year-End Review An overview of the precedent-setting cases the committee took on this year. Tax Update: Departments 2 MMA Online 3 President’s Message Chuck Hadden discusses how MMA is responding to the challenge of “living in interesting times.” 8 Advocacy Update MMA opposes ergonomic and mercury rules and SUTA dumping legislation is primed for lame duck action. 9 Advocacy Issues at a Glance Check the status of key policy issues the MMA is working on. 12 HR Q&A Employer concerns about the Free Choice Act and the new ADA. 17 The Economy 20 News Briefs 22 Member News 24 Upcoming Events Solvency Tax on the Horizon for UI Payments Michigan’s outstanding loan from the federal government could mean higher Unemployment Taxes next year. 18 Case Study: Demmer Corporation: A National and Local Asset Building defense vehicles and strengthening the manufacturing sector are all in a day’s work at this extraordinary company. Photos: BigStockPhoto.com or MMA unless otherwise identified. Insight NOV | DEC 2008 1 MMA Online www.mma-net.org Michigan Manufacturing NOV | DEC 2008 Vol. XXI No. 6 MiManufacturing Jobs Today’s high-tech manufacturers want and need the brightest, most adaptable, most highly skilled workers available. Find them today: http://mimanufacturingjobs.com. STAFF Publisher: Charles E. Hadden Editor: Amy Shaw Layout: Joy Ross INSIGHT ADVERTISING Contact Gretchen Christensen, at 888-822-3102 or gretchenchris@villagepress.com, or see www.mma-net.org/ content/pdf/insight_ratecard.pdf. MMA OFFICERS Chairman: James M. Nicholson, PVS Chemicals, Inc. Treasurer: Daniel R. Lockman, Deloitte & Touche LLP Secretary & Counsel: Duane Tarnacki, Clark Hill PLC President and CEO: Charles E. Hadden, MMA Executive Vice President and COO: John J. Trobec, MMA Directors Cynthia A. Alt, Agapé Plastics, Inc. Thomas F. Catania, Whirlpool Corporation Ken W. Cole, General Motors Corporation Richard F. Dauch, Acument Global Technologies, Inc. David J. Dupre, The Dow Chemical Company W. Frank Fountain, Chrysler LLC Karen L. Healy, Delphi Corporation David W. Joos, CMS Energy and Consumers Energy John E. Lindseth, Access Business Group LLC Harry A. Lomason II, Lomason Investments Richard A. Lund, Jedco, Inc. Ziad S. Ojakli, Ford Motor Company Peter J. Pestillo, Visteon Corporation (Ret.) Sharon J. Rothwell, Masco Corporation Richard F. Russell, Amerisure Insurance John G. Smith, ROSS Controls, Inc. MMASC OFFICERS Chairman: David H. Walborn, Resource Recovery Corp. of West Michigan (Ret.) Vice Chairman and CEO: Charles E. Hadden, MMA President: John J. Trobec, MMASC Secretary & Counsel: Duane L. Tarnacki, Clark Hill PLC Treasurer: Daniel R. Lockman, Deloitte & Touche LLP Directors William A. Demmer, Demmer Corporation Philip W. Jennings, Deloitte & Touche LLP (Ret.) Harry A. Lomason, II, Lomason Investments LEAD MMA STAFF Lawrence A. Janicki, VP of insurance and services Michael D. Johnston, VP of government affairs Jacquelyn L. Schweitzer, VP of finance and HR David S. Zurvalec, VP of industrial relations The opinions expressed herein are those of the authors and do not necessarily reflect the policies, positions or opinions of the Michigan Manufacturers Association (MMA) or the MMA Service Corporation (MMASC). Free Back Safety Training MMA is partnering with WorkSafe to offer members no-cost back safety training in your facility. See www.mma-net.org/specialoffers/backsafety.asp for more information. Update Your E-newsletter Preferences Each of MMA’s e-newsletters has been redesigned to make the information you need clearer and faster to access. Update your contact information and receipt preferences at www.mma-net.org/publications/pubsignup.asp. Employee Benefits Survey Participants in the MMA/Management Resource Center, Inc. employee benefits survey receive a 50-percent discount on the completed report. The deadline for participation and to receive the report half price is 12/12/08. See www.mma-net.org/hrservices/hrservices.asp to download the survey. Access Tool and Die Resources Members of MMA can access information and resources related to strengthening Michigan’s tool, die and mold-making industries, by logging in and going to: www.mma-net.org/advocacy/comm_tdac.asp. 401(k) Provider Grows Through Exceptional Service MMA-endorsed partner, Freedom One Financial Group, has been providing 401(k) plans for 20 years. Visit www.mma-net.org/insurance/401k.asp to learn about Freedom One’s exceptional employee education philosophy, co-fiduciary services and unique revenue-neutral model that funnels all compensation from investment options to clients’ plans. In the Next Issue The January/February 2009 issue of Michigan Manufacturing Insight will include a preview of MMA’s 2009 Legislative Agenda, a year-end review of 2008 legislative and regulatory challenges and successes, a forecast of what’s ahead for Michigan’s manufacturing sector and the state’s economy and the regular departments that are included each issue. Michigan Manufacturing Insight Vol. XXI No. 6, November/December 2008 (ISSN 1936-8860) is published bi-monthly for $18 per year by the MMA Service Corporation (MMASC), 620 S. Capitol Ave., Lansing MI 48933-2343. Periodicals postage pending at Lansing MI and additional offices. POSTMASTER: Send address changes to MMASC, Membership Department, PO Box 14247, Lansing MI 48901-4247. CONTACTING INSIGHT AND MMA/MMASC Editor: Amy Shaw, 517-487-8513 or shaw@mma-net.org. MMA/MMASC general contact: phone: 517-372-5900; fax: 517-372-3322; e-mail: ask@mma-net.org; address: 620 S. Capitol Ave., Lansing, Michigan 48933; Web site: www.mma-net.org. Past issues of Insight: www.mma-net.org/publications/ publications_ent.asp. Advertising Contact Gretchen Christensen, at 888-822-3102 or gretchenchris@villagepress.com, for information on advertising in Michigan Manufacturing Insight. Each issue reaches at least 6,000 manufacturing and allied industry decision makers. 2 Insight NOV | DEC 2008 President’s Message A Call to Action in Interesting Times The phrase,“May you live in interesting times,” seems to be stuck in my head as I, like everyone else, try to make sense of current events. Since my last column, President Bush signed the biggest bailout in history, spending $700 billion to “rescue” the financial sector and prevent total collapse of our national economy. The world watched and waited to see if negotiations that began in October would lead to the “Big Three” becoming the “Detroit Two” with a possible merger between Chrysler and General Motors. Legislation that totally restructured Michigan’s energy policy to ensure that manufacturers will have the energy they need in the future was signed into law. And then there is the presidential election, which will be over by the time this issue reaches you. At the time of this writing, the country is still waiting to see who the winner will be. When the election is over, we will be waiting again to see if the winner of this historic race has the answers that are so desperately needed to turn things around. With all of this in mind, “interesting times” seems to be gross understatement. We realize, at MMA, that our mission to serve the needs of our members is never greater than in times of great challenge and turmoil. It is in times like these that we need to help you squeeze the most out of every last dollar by providing the information you need to be as productive as possible; the costsaving services you need to maximize the return on investment for your dues dollars; and a strong advocacy program to protect you from unnecessary and overly burdensome regulation and legislation and to actively fight for policy changes that will protect and promote Michigan’s vital industrial sector. In this issue, the article, “Preview of a Bigger, Bolder, Better MMA” (pg. 4), provides an overview of my vision for making MMA the best trade association in the state and the best manufacturing organization in the nation. That vision is based on a re-examination of everything that we currently do. It is also an effort to aggressively seek out new services, to enhance those that we already offer, and to ensure that we provide the best service, the best services and the best value for our members. You deserve nothing less. Our advocacy efforts have been the core of MMA’s mission for more than 105 years. The latest testament to the success of our strong legislative and regulatory efforts is highlighted in the article, “Michigan’s Energy Plan for the Future” (pg. 6). Be sure to take a look at the year-end report of the MMA Lawyers Committee as well to see how manufacturers have been protected in the judicial process through MMA’s actions on important precedent-setting cases. We are here to serve you, and are continually looking for new ways to meet the ever-changing needs of our members. Please contact me, at 517-4878541 or mma_executiveoffice@mma-net.org, to let me know how we can improve our service to you. President and Chief Executive Officer Insight NOV | DEC 2008 3 Preview of a Bigger, Bolder, Better MMA By Chuck Hadden, MMA President and CEO Manufacturing is in Michigan’s DNA. And I believe that my mission, as the new president and CEO of the MMA, is to ensure that everyone knows that manufacturing is not just a part of Michigan’s history but is our future as well. I want to return Michigan manufacturing to global dominance, one manufacturer and one sector at a time. This article is intended to provide a glimpse of how I plant to make that happen, with the help of the great staff at MMA — and from our members. We all know that manufacturers have been challenged more in the last decade than any other period in history. The only constant has been change and the rate of change has been accelerating every year. Changing markets, products, processes and technology have created a whole new breed of manufacturers, those that Henry Ford could hardly imagine. While manufacturers have risen to the challenge of change by becoming more agile, aptaptable, more productive and hightech than ever before, even the most advanced manufacturer needs help to succeed in the global marketplace. That’s where MMA comes into the picture. For more than 105 years, MMA has been serving the needs and interests of Michigan manufacturers. That’s a lot of experience and success to build on as an organization. But, like the manufacturers that we represent, adaptability and continuous improvement are a necessity. We are currently re-examining everything that we do to ensure that today’s MMA meets the test of providing world class service and services for all members — large, small and everything in between. MMA, as a trade association dedicated exclusively to serving manufacturers, is committed to identifying and delivering the services that manufacturers want and need to succeed. Our goal is to ensure that whatever manufacturers need, they will find it at MMA; whatever they use, they can find by going through MMA; and that it will all be manufacturing-focused. Expanding the services we offer to make MMA a complete “one-stopshop” for manufacturers will be an “It’s time to do whatever we can to make Michigan the manufacturing center of the world.” ongoing mission, with each new service thoroughly evaluated before it is rolled out, but I’m excited to tell you about some of the changes you can expect to see in the coming months as we begin to build a bigger, bolder, better MMA. Bigger Membership development is a priority because there is strength in numbers. MMA intends to take full advantage of that strength. We are going to increase our efforts to connect MMA with members, members to members, and members with the MMA through regional meetings, online member forums, webcasts, podcasts, blogs, member surveys, and more. We will recruit and engage members across the state to help spread the word about all that MMA has to offer and why it pays to belong, and provide MMA with a direct link to regions across the state to get input on important issues and to be able to call members to action. A revamped, more user-friendly Web site is also part of our overall plan to enhance our ability to connect with members, and prospective members, A Successful Past... A Promising Future MMA has enjoyed many successes that have benefitted industry in recent years — most notably, the elimination of the Single Business Tax and the recently signed energy reform legislation that completely restructures our state’s energy policy. As we look forward, MMA will continue to advocate for you at the Capitol against burdensome legislation and regulatory efforts that would weaken the competitiveness of Michigan’s manufacturing sector and for public policy that will help you compete. Hadden with Gov. Granholm at the signing of the energy reform bill. 4 Insight NOV | DEC 2008 MMA...at your service Feel free to contact Hadden with your comments and suggestions for new services you’d like MMA to provide by phone, 517-487-8541, or e-mail, mma_executiveoffice@mma-net.org. by making it easier for you to find the information and services you need. Continuing development of the Makin’ It In Michigan campaign and the new MMA manufacturing jobs web portal, MiManufacturing Jobs, will work together to encourage students to pursue manufacturing careers and to match job seekers with job providers to ensure that manufacturers have the skilled workers they need today and tomorrow. value-added services that will make membership pay for itself and then some. We’re evaluating everything we do to make sure that members get the world-class service that they deserve, every time. From improved phone service and a more user-friendly web site to more manufacturing-specific content in all of our publications and targeted seminars, webinars, and podcasts to keep manufacturers up-to-date on the latest information and trends, we’re excited about making MMA all about you, our members. In addition to improving the things that we already do, we’re exploring a whole host of new services to give you the best value possible for your membership. One of the first new services added to the mix is a manufacturing-specific jobs portal. The portal, MiManufacturing Jobs, is a way to bridge the gap between skilled workers and the manufacturers that are looking to hire them. This is an exclusive service for all MMA members and you are encouraged to try it for free until the end of the year. After that members will have unlimited access and be able to post as many jobs as they want for only $200 a year. We think this is a real value, and we’re confident that members will think so, too. Check out the jobs portal today: http://mimanufacturingjobs.com. Bolder Tackling the image problem that manufacturing has battled for years is also a top priority for moving Michigan manufacturing, and MMA as an organization, forward. I believe that one of the most important responsibilities that I have taken on as president and CEO is to increase the visibility of the organization and to improve the image of manufacturing by carrying a new message to editorial boards, policymakers and the general public that manufacturing is not “dying.” It is transforming. It is our state’s future, not just its past and a strong manufacturing sector is vital to our state’s economic well-being. Manufacturing has changed. We’ve gone through a difficult period of transformation, but the important part of the story that needs to be told is that the companies that have survived have grown stronger than they were before. They have become more flexible, they’re global in nature, they can change on a dime and they’re diversified. That’s the type of manufacturers we have in Michigan, and that’s the image we need to portray. I’m committed to replacing the all too common belief that “manufacturing is dying” with a renewed optimism about the future of Michigan as a global manufacturing leader that will emerge even stronger for all of the challenges that we have encountered. It’s time to do whatever we can to make Michigan the manufacturing center of the world and the envy of all other states and countries. Building MMA for the 21st Century — And Beyond Manufacturing has changed; it’s time for MMA to change, too…and we need your help. We need your input. What services would you like MMA to offer? How can we improve the services we already offer? How can MMA make doing what you do easier, faster, cheaper, and/or better? Please feel free to give me a call or send me an e-mail to let me know how we are doing or to share your ideas or concerns. You can contact me via e-mail at mma_executiveoffice@mma-net.org or at 517-487-8541. Better At MMA, the success of our members is our business. That means offering first-rate service and providing Insight NOV | DEC 2008 5 Protecting Manufacturing’s Future By Mike Johnston Few legislative actions impacting the manufacturing sector rise to the level of fundamental policy reform. Like last year’s passage of the new Michigan Business Tax, the recently adopted energy package meets that definition. While there are many components to the comprehensive package, MMA achieved two important policy changes for the betterment of Michigan’s business climate and the industrial sector in particular. The first reforms the electric rate structure for manufacturers relative to other rate classes. Secondly, to ensure an adequate supply of reliable power, MMA supported returning electric utilities to a regulated system and away from the electric choice model implemented in 1997. Michigan's New Energy Plan Impact of Deskewing For decades Michigan’s electric rate structure differed from most other states in that the business sector subsidized residential rate payers, keeping their rates artificially low. This policy was a clear competitive disadvantage for Michigan business customers as other states could produce goods more cheaply with lower electric rates. The actual cost of delivering power to manufacturers on a per kilowatt basis is lower than for residential customers, which requires an expensive distribution system to deliver steppeddown power to each individual home. However, manufacturers were forced to pay more for the power they used, so residents could pay less. Mike Johnston is vice president of government affairs for the Michigan Manufacturers Association. He may be reached at johnston@mma-net.org or 517-487-8554. The new policy reverses this subsidization with more competitive cost-of-service-based electric rates for manufacturers. Removing this competitive barrier to success will improve Michigan’s overall business climate. This is a significant success for manufacturers and the citizens of Michigan who continue to face the highest unemployment rate in the nation. Citizens have a much more difficult time paying their electric bill if they don’t have a job. This much-needed change will help attract job-creating manufacturing investment to our state. Annual Impact of Deskewing $300 $250 $200 $150 $100 Cost (in millions) $50 $0 -$50 -$100 -$150 -$200 Residential Commercial and Industrial Manufacturing Note: PSC Staff rate realignment calculations for Detroit Edison Company. 6 Insight NOV | DEC 2008 Return to a Regulated System The second fundamental policy change is the return to a regulated incumbent electric utility system. A decade ago, like much of the rest of the nation, Michigan pursued a competitionbased electric system. Some states went so far as to divest their generation assets. Since then, however, some important lessons have been learned. total demand for electricity increased. Michigan currently has one of the oldest base-load generation fleets in the nation, averaging around 50 years old. Retrofitting an aging fleet to meet increasing environmental regulation has become increasingly uneconomical. In the absence of a predictable customer base, utilities were unwilling to invest huge sums to build new base-load generation. “MMA led the charge to remove the uncertainties that prevented investment in new power generation.” Competition brought lower costs to some in the short term, but the system did not create an incentive for new base-load generation plants; plants to provide the minimum amount of power required to meet customer demand. Several natural gas-based “peaker plants” were built but, as the price of natural gas rose significantly, the availability of lower cost power disappeared. And as Michigan’s aging base-load fleet continued to get older, Securing Energy for the Future Recognizing the future need for reliable sources of power, Michigan needed new generation capacity. MMA led the charge to remove the uncertainties that prevented investment in new power generation and to enable new power construction in Michigan. If these fundamental policy challenges were not solved, manufacturers would have increasingly suffered significant price swings as utilities bought more power on the unpredictable open market. These are important lessons learned in other states. When the availability of power drops, the price will rise on the open market. Michigan’s new energy plan ensures new base-load plants will be built, but MMA also advocated for the need to provide competitive choice options — particularly for manufacturers that currently exercise choice from an alternative electric supplier. The new law ensures that 10 percent of electric sales is available for choice and allows those accessing choice to expand that usage into the future. Ensuring access to choice not only provides manufacturers with competitive options, it also helps keep the majority utilities running lean. “As one of Mich igan’s largest energy consum ers, United States S teel Corpor atio to our le n looks gislative leaders to supp ort poli provide cies tha for relia t ble and priced p competi ower an tively d energ Michiga y fo n steel o peration r our the effo s. We su rts of th pport e Michig and the an Legis Adminis lature tration energy to secure plan th at will e an supplie nsure a s of reli dequate able po future d wer to m emand eet in Mich Jill Ritc igan.” hie Manage r, Public Policy a Govern nd mental Affairs United States S teel Corp oration ciate e appre n “W work o MMA’s of the behalf cturing manufa MA unity. M ery step of the comm ith aged ev ng ently w stayed e d frequ rs interacte r manufacture e way and r memb othe us and rocess.” ut the p rougho th Geer er Garrett irs Lead ent Affa ons overnm G perati y higan O Compan for Mic hemical Dow C The Renewable Energy The plan also establishes a renewable portfolio standard (RPS) that mimics efforts in many other states to diversify power generation sources. The RPS includes requirements for utilities to establish energy efficiency programs designed to reduce the need for construction of new power generation. Other policy gains include limiting costs of the new RPS to per meter charges for manufacturers to limit the costs to industrial class customers. MMA also successfully fought for inclusion of an opt-out provision in the energy efficiency programs. This exemption lets manufacturers escape the fee required under the program. The self directed plans allow manufacturers to achieve the 5.5 percent demand reductions at the lowest cost possible. MMA also successfully streamlined the opt-out process by limiting reporting to every two years and eliminating the heavy-handed audits advocated by some. Resolving rate structure issues for manufacturers by moving to cost-ofservice-based rates removes a longstanding competitive barrier to success in Michigan. And providing a mechanism for the construction of new base-load generation will ensure an adequate supply of reliable power in Michigan. We believe that these two policy reforms in our state’s new energy plan will carry Michigan forward at a critical time in our economic history and will benefit the industrial sector for many years to come. MMA would like to thank the members of both political parties in both chambers of the Legislature, as well as the Granholm Administration, for working together to achieve these important fundamental policy changes to secure Michigan’s energy future. Insight NOV | DEC 2008 7 Advocacy Update Sign Up The MMA Capitol Report delivers concise legislative, regulatory and judicial news on state and federal issues affecting Michigan’s industrial sector. It’s distributed weekly by e-mail and is free to MMA members. Is an Ergonomic Rule in Michigan’s Future? On 8/25/08 a joint commission meeting was held to formally accept the draft ergonomic rule that MMA has been fighting against for Shaw the past five years. The proposed rule would make Michigan the only state in the nation, aside from California, to impose ergonomic requirements on employers. While no vote was taken at the meeting of the General Industry Safety Standards and the Industrial Health Safety Standards Commissions, the rule is one step closer to becoming a reality despite a unified front by the business community, led by the MMA and NFIB, to get the Michigan Occupational Safety and Health Administration (MIOSHA) to turn away from a mandatory standard. According to Amy Shaw, MMA’s director of communications and education, “MMA will continue to urge MIOSHA to adopt voluntary guidelines rather than the proposed standard, an approach that even the U.S. Occupational Safety and Health Administration (OSHA) approves.” Shaw added, “We are not antiergonomics but we are adamantly opposed to saddling employers with a mandatory rule that would have significant time and cost implications; a rule that has been pursued without adequately addressing whether there is a need for a state-specific standard that would exceed federal requirements.” MMA will continue its efforts to block this costly and ill-advised standard. Members are encouraged to submit statements of opposition documenting the anticipated cost implications to their particular business of a mandatory ergonomic standard. Contact Shaw at 517-487-8513 or shaw@mma-net.org. SUTA Dumping Legislation Moves to Senate The Department of Labor has warned Michigan that its Anti-SUTA (State Unemployment Tax Act) Dumping legislation is not adequate and must be brought into compliance or the state’s employers will be facing stiff penalties including $124 million in annual federal funds as well as loss of the Federal Unemployment Tax Act credit that reduces employer obligations from 6.2 percent to 0.8 percent. On 9/24/08, the Michigan House passed MMA-supported legislation (HB 6386) to bring Michigan into compliance with federal law, and the Association will be urging the Senate to follow the House’s lead and move the bill through to the Governor, who is anxious to sign it. Sign up online: www.mma-net.org/publications/ pubsignup.asp or call 517-487-8551. In addition, MMA evaluated the Regulatory Impact Statement (RIS) developed by the DEQ and found it to be woefully inadequate. As an example, the DEQ estimated the cost to industry to range between $11.4 million per year and $498 million per year. “If you went to a restaurant and the menu said the steak costs between $11 and $498, but you won’t know the actual price until you get the steak, would you order the steak?” asked Mike Johnston, MMA vice president of government affairs, in his public testimony. “Would you even go to that restaurant?” MMA’s testimony and evaluation of the RIS can be viewed on the MMA Web site: www.mma-net.org. MMA Adamantly Opposes Proposed Mercury Rule MMA testified on 10/2/08 at the Department of Environmental Quality (DEQ) public hearing to argue against moving ahead with the clearly Johnston discretionary state mercury rule prior to the promulgation of a federal rule. The federal rule currently being developed by the Environmental Protection Agency (EPA) will likely be more stringent than the previous rule vacated in federal court, so the DEQ cannot predict the incremental benefits of the state rule relative to the impending federal rule. Moreover, moving forward with the state rule now would inevitably cause expensive regulatory conflicts and result in increased bureaucratic costs without providing clear environmental benefit. Business to DEQ: We Need More Certainty! The main topic of conversation at the DEQ’s Environmental Advisory Commission meeting on 9/18/08 was the issuance of notices of violation based on operational memoranda which the business community argued should only be based on rules and statute. MMA testimony indicated that memoranda should include a disclaimer that they are intended only to interpret law and are not, themselves, legally enforceable. Paul Collins of Miller, Canfield, Paddock and Stone, PLC and Mark Werthman, senior environmental specialist for Chrysler LLC, spoke on behalf of MMA. The two testified that there should be more public and industry input before the DEQ issues a memoranda and that they should all be available on the DEQ Web site. The commission is expected to present recommendations at its next meeting for changes to the process to address the concerns of the business community. 8 Insight NOV | DEC 2008 Advocacy Issues at a Glance MMA Agenda Issue MMA Recommendations Reform Business Taxes SB 1038 (Cassis-R) would fix the definition of gross receipts in the Michigan Business Tax (MBT) to ensure that it does not include sales and use taxes, bad debt, business treasury functions and other cash management practices. On 10/2/08 the Senate amended House changes and returned the bill to the House. We anticipate the bill will be considered during lame duck session. No action has been taken on the proposed Michigan-specific ergonomic standard since the joint hearing of the General Industry Safety Standards and the Occupational Health Standards Commissions was held on 8/25/08 to receive the draft standard. MMA was successful in warding off fee increases on the regulated community by getting the Legislature to put $13 million in General Fund (GF) support for the operation of environmental programs within the Michigan Department of Environmental Quality (DEQ) into the supplemental budget signed by the governor for the current fiscal year 2008-09. However, the DEQ has announced a meeting on 11/6/08 to discuss several fee increase proposals. MMA Action/Status The MMA continues to work toward passage of these necessary changes to the MBT prior to the end of session to avoid the uncompetitive tax polices that would be imposed, which would further damage Michigan’s already fragile business climate if not addressed by the end of the calendar year. Reduce and Streamline Regulation Testimony was heard at the joint hearing but no vote was taken. MMA testified in opposition to the draft standard and urged the commissioners to set aside the proposed standard until the question of whether there is a need for a standard that exceeds federal requirements is adequately addressed. MMA will attend the meeting on 11/6/08 and will remind the agency that the business community has gone far beyond its obligation in the Michigan Business Tax (MBT) by contributing an additional $700 million surcharge and will actively oppose any fee increases. Regulatory programs serve all citizens and should not be funded on the backs of job providers. MMA will continue to work with the Legislature to preserve the positive policy trend of having the GF take appropriate responsibility for the operation of environmental programs. MMA put considerable effort into getting this compact adopted and now with it being ratified by Congress, regards it as a major achievement that will benefit manufacturers for years to come. We will continue to monitor the progress of the groundwater withdrawal assessment tool included in the compact that implements a revolutionary, science-based online approval process that provides instantaneous response to water use withdrawal proposals. MMA will continue to work with the administration to ensure that the cost of service policies are implemented quickly and effectively to reduce the burden on manufacturing job providers. The Public Service Commission staff estimates rates for manufacturers will drop by $162 million and commercial and small industrial customers by $97 million as a result of the reforms. Encourage Economic Development and Trade On 10/3/08, President Bush signed a joint resolution of Congress providing consent to the Great Lakes St. Lawrence River Basin Water Resources Compact, providing federal authorization for the compact agreement among Great Lake states. This ensures control of the Great Lakes water by the Great Lakes states, allowing us to retain the economic value of the water for residents of the basin. The compact serves as much of the basis for the water withdrawal legislation passed this summer. On 10/6/08 the governor signed the energy package into law. The package includes the fundamental energy policy reforms advocated by MMA including: implementing cost-of-service electric rates; ending the long-standing Michigan policy of subsidizing residential electric rates through commercial and industrial rates; returning electric utilities to regulated service to help encourage construction of new base-load generation; retaining and allowing growth of choice options for those manufacturing facilities currently opting for choice; and allowing a self-directed plan to attain energy efficiency program goals. The package also includes a Renewable Portfolio Standard. Reduce Health Care Costs Legislation that would broaden the scope of practice for chiropractors and mandate autism insurance coverage was discussed in separate legislative work group meetings that took place during the summer but no further action has occurred. MMA participated in the workgroup process for both of these issues and opposes passage of these bills and any others that may be brought forward in the lame duck session to impose additional health care mandates on employers. Insight NOV | DEC 2008 9 Smart Compensation Strategies for Tough Times By Edmund B. Ura Four months ago, this article would simply have provided details concerning labor market changes from 2007 based on the results of the 2008 Compensation in Michigan Manufacturing Survey, sponsored by MMA and conducted by Management Resource Center, Inc. In the current environment, however, the focus rightly shifts from “what were the numbers?” to “what should we be doing with the numbers?” For the record, median market rates in Michigan manufacturing (as measured by changes in base pay by job for a core group of positions), increased 3.2 percent, compared to 3.5 percent from 2006 to 2007. Participants reported average increases for 2007 at just over 3.1 percent, meaning that most of the changes in the market came from planned increases rather than from outside market pressure. Participants expected to increase payroll budgets by about 3.1 percent in 2008. About a third of those companies planned across-the-board increases of 2.9 percent, with planned merit increases (used by most organizations, at least in part) averaging 3.5 percent. No particular factor (e.g., company size or location) appeared to drive the plans. Recent reports project 2009 budgets increasing to 3.5-4.0 percent in Michigan as well as nationwide. Many explanations have been proposed, given that this is higher than what would be expected with high unemployment and economic uncertainty. One explanation is a reaction to higher living costs, particularly related to transportation. Employers may feel it necessary to increase pay in order to make up for higher commuting costs. Another concern is that many employees are simply being asked to do more. Work must still be done, often by fewer people, and the remaining employees are asked to pick up the slack. Whatever the rationale, and whatever the number, many employers will make a serious mistake this year — they won’t allocate increases effectively. The current economic situation is the best excuse ever for doing what organizations should be doing all along — targeting employees’ pay to their contributions to the company. The process of “right-sizing” a compensation program involves a little bit of effort and a lot of discipline. It is not a quick way of saving money because cutting pay is rarely, if ever, an effective approach and leaves no pool of resources to fix those below where they should be. Instead, it is a long-term approach to hiring rates and making adjustments to ensure that the company has an effective program. In short, invest a little now and reap a great reward in the future. In a recent MRC assignment, for example, a client used its already planned 4.0 percent budget increase for those beyond their target pay, and gave a 10 percent increase to nearly a third of the workforce, bringing them into proper wage alignment with their contribution to the company. Net result — significant movement toward a system where compensation equals contribution. Why the General Increase Approach is the Wrong Approach, Especially Now The best argument for giving the same increase to all (or effectively the same given the range of many “merit” programs) is that it is “fair.” Actually, it isn’t fair from any perspective. The market rate for lower-paid positions generally moves faster than for higher-paid positions. If the company gives everyone the same increase, employees in lower-paid positions are eventually paid well above the market; those in higher-paid positions fall under the market, resulting in turnover or dissatisfaction or the inability to hire talent without upsetting existing compensation relationships. In addition, those who work hard get the same as those who barely get by. The fact is that the only thing good about a company-wide general increase approach is that it is easier on management. Restrictions resulting from collective bargaining agreements or a perceived inability to measure differences in performance should not provide an excuse for not dealing with the situations not bound by such restrictions. Employers implementing a structured compensation approach almost always find the same situation. After determining the appropriate rate of pay for each employee and comparing that to current compensation, they will find that total payroll is just about what it should be but that most employees are out of scale and need to be righted. What’s a Job Worth to You? A program won’t deliver appropriate compensation if it doesn’t incorporate a method for determining the ability of a job to contribute to the success of the organization. Some type of job evaluation is essential for dealing with the two major issues that labor market data can’t address: • what to do about jobs that aren’t benchmarks and, thus, don’t have readily available market data; and • how to adjust for jobs that aren’t quite like the jobs in the surveys. The key to job evaluation is accurate documentation. A description ensures that employees understand job expectations, and that management has a plan for where responsibilities are placed. Many certification programs now require accurate job descriptions but, even when not required, they should be used. Job content should be carefully reviewed to ensure that the expectations of 10 Insight NOV | DEC 2008 the organization match the qualifications required so the organization isn’t wasting compensation dollars year-round for duties performed only rarely. A structured evaluation plan measures job characteristics in a reasonably objective manner and produces a pay grade structure reflecting the organization’s hierarchy. A process that is too objective will result in a dysfunctional organization, while an approach that is too subjective can’t be effectively justified. The approach selected must also compare jobs against a standard — not against each other. Comparison systems don’t respond well to changing environments. Job evaluation keeps the focus on the job, not the person in it, and allows for a much more effective use of labor market data. Any effective system will be easy to administer and allow for new jobs and changes to jobs occurring periodically and provide an easy tool for quick assessments of the cost for organizational change. (appropriate for jobs hired locally), by industry (assuming industry experience is important), and by employer size (allowing you to assess competition with similar resources). What is an Individual Worth to You? An organization’s pay ranges should be built around the competitive market position the organization selects. The ranges should reflect the least and most that the organization is willing to pay to someone in that job and clearly identify the part of the range where “fully functioning” employees should be paid. Other parts of the ranges should be assigned to different levels of contribution, which is measured, not just by last year’s results, but by proven performance over enough time for the organization to be secure in knowing what the employee can do. The simplest method of assessing contribution involves a job description and a pencil to write in the margin. Rather than being lost in generic appraisals, focus on the actual expectations of the job itself and show the employee the clear way to reach those expectations. The current economy inspires anxiety, whether deservedly so or not. Organizations will respond to that anxiety, often pulling back from actions that are necessary for the long-term health of the company. This is the perfect time for you to take a step back and consider your next series of pay increases and make sure that the budget for your human assets accurately reflects the return from your investments. Edmund B. Ura is president of Management Resource Center, Inc. (MRC), in Plymouth. MRC is an independent consulting firm offering business and compensation strategy and planning and research and management consulting. Ura may be reached at 734-454-2500 or ebura@mrc-consulting.com. Benefit Survey Participants Receive Reports Half Off It’s time for the 2008 MMA Benefit Survey, conducted by Management Resource Center, Inc. (MRC). The questionnaire is available on the MMA Web site for members to download, complete and return to help track market trends and identify projected changes that manufacturers are expecting to make to their benefit packages in 2009. By surveying Michigan manufacturers of all sizes throughout the state, the report provides a comprehensive and reliable measure of current trends. The more participation we have, the more accurate the report will be — members are encouraged to take the time to participate each year. As an added incentive, companies that participate receive 50 percent off the cost of the published report. Contact MRC, at 734-454-2500, to add your company to the survey recipient list today! The deadline for participation and to receive the report half price is 12/12/08. Download the questionnaire today: www.mma-net.org. What’s a Job Worth in the Market? Organizations need up-to-date, reliable labor market data, if for no other reason than to avoid “umm” management. Umm management occurs when an employee walks into his manager’s office with the latest salary.com printout and asks why he isn’t making that much. The response to the employee is usually “umm” while the manager thinks of something to say or hurriedly picks up the phone to call the equally uninformed human resources department. Employers should use as many reputable sources of data as they can. The best surveys are those published regularly by organizations that have no inherent interest in the results. Trade associations and independent consulting firms can fit that requirement, as can some carefully used government reports. Data selected from surveys should be appropriate for the market for each job. In the MMA/MRC survey, data is broken out by geographic region Insight NOV | DEC 2008 11 HR Q&A Ask: mma@clarkhill.com The New ADA and Employer Concerns About the Employee Free Choice Act Q: By William A. Moore I have heard of the “ADA Amendments Act of 2008.” What is this? Democrats gain the White House and a majority of both houses of Congress. The Act has four substantive provisions: 1. It requires the National Labor Relations Board (NLRB) to certify any union as the exclusive bargaining agent for workers of a particular employer merely upon the presentation of authorization cards signed by a simple majority of the employees. Historically, the preferred method of selection of a collective bargaining agent (union) has been by secret ballot elections conducted by the NLRB. Under EFCA, there would no longer be any secret ballot elections; clearly the purest form of free choice. 2. It would require the union and the company to reach an initial collective bargaining agreement within 90 days of presentation of authorization cards signed by the majority of employees. If that is not done, the collective bargaining process will be submitted to and decided by binding arbitration. Obviously, the first contract may be written by people who know little about your business. 3. It requires the NLRB to seek an injunction against the employer in cases where an employee has been discharged either during an organizational campaign or during the negotiations of the first collective bargaining agreement. If the employee wins, the penalty is not just back pay but three times the amount of back pay. 4. It provides for a civil penalty not to exceed $20,000 against an employer for each violation where the employer willfully or repeatedly commits unfair labor practices during the period when employees were seeking representation by a union or while negotiating the first collective bargaining agreement. The provisions of EFCA, as described above, have remained remarkably unchanged even though the Act has been proposed in the House of Representatives at least three times and in the Senate at least once. Needless to say, EFCA would substantially alter the landscape with respect to union organizing. Non-union employers are advised to keep a close eye on this situation and make some plans in case EFCA is adopted in early 2009. A. This new law was passed in direct response to several U.S. Supreme Court cases that restricted the coverage of the Americans with Disabilities Act (ADA). The law is designed to broaden the definition of disability and expands the population that is eligible for protections under the ADA. The new law has three main features: (1) It expands the list of “major life activities” to include the operation of many major bodily functions, such as functions of the immune system, normal cell growth, digestive, bowel, bladder, circulatory, respiratory, neurological, endocrine and reproductive functions; (2) It expands the definition of disability to now include “an impairment that is episodic or in remission” if, when active, the impairment would substantially limit a major life activity. In other words, if an employee has epilepsy, takes medication for it and has not had a seizure or other symptoms for a number of years (presumably because of the medication), that person may be disabled and protected by the ADA; (3) It expands the language of the Act for individuals who were “perceived” or “regarded” as having a disability. The new law eliminates the need for the employee to show that he or she had a disability or that the employer viewed the disability as “substantially limiting.” Obviously, the impact of these new provisions will require a case-by-case analysis and may be different from employer to employer. We suggest you contact legal counsel if you have any further questions in this area. William A. Moore is part of Clark Hill PLC’s Labor and Employment Practice Group. If you have additional questions, please e-mail the firm at mma@clarkhill.com or call the toll free MMA H.R. Help Line at 800-676-9077. Sign Up The MMA HR Report includes answers to timely human resources-related questions, updates on laws and policy impacting the field and other pertinent information. It’s distributed by e-mail each month and is free to MMA members. Sign up online: www.mma-net.org/ publications/pubsignup.asp or call 517-487-8551. Q. I’ve heard a lot of talk about the Employee Free Choice Act. What is it and, as a non-union employer, do I really need to worry about it? A. The Employee Free Choice Act (EFCA) is an attempt to radically change the federal law as it relates to union organizing of United States employers. The Act has been proposed in Congress several times but, after those unsuccessful attempts, union representatives have allegedly and apparently received a commitment from Congress to enact the legislation after the 2008 elections if 12 Insight NOV | DEC 2008 MMA is not responsible for information or assistance provided. Information provided in the MMA HR Report and in response to H.R. Help Line inquiries are for general informational purposes only and expressly does not create an attorney-client relationship in any way. Legal counsel should be contacted for specific advice before taking action on the information presented. Protecting the Legal Interests of Manufacturers By David D. Grande-Cassell This was a challenging and productive year for the Michigan Manufacturers Association Lawyers Committee. The Committee was actively involved in many significant cases before the Michigan Court of Appeals and Supreme Court in furtherance of its efforts to ensure a fair and just legal climate for manufacturers. Manufacturers are constantly faced with the threat of astronomical tort verdicts and severe legal liability. A number of cases recently decided by (or still pending before) Michigan appellate courts demonstrate the risk of such liability faced by manufacturers and their insurers. These cases have established, or will establish, new precedents that will affect all Michigan manufacturers and, accordingly, every aspect of Michigan’s economy. The Committee has submitted amicus curiae (friend of the court) briefs supporting manufacturers or manufacturing interests in the cases described below. The Committee was also instrumental in convincing the Michigan Supreme Court to adopt less stringent restrictions on out-of-state counsel’s appearance in Michigan courts. WCAC decision and MMA joined others in an amicus brief to the Court of Appeals. The manufacturer’s argument on appeal was that the Bureau and the WCAC applied the improper standard for “disability.” Under the proper standard, the test is not whether a claimant can return to the work he was last performing but whether he is prevented from working at any job within his qualifications and training. The Michigan Court of Appeals affirmed the grant of benefits but vacated the holding of the WCAC as inconsistent with the standard for a finding of “disability.” The manufacturer appealed to the Michigan Supreme Court for a clarification of the standard and a ruling on the burden of proof for a finding of disability. MMA again filed an amicus brief in support of the manufacturer. On 6/12/08, the Michigan Supreme Court issued its long-awaited decision definitively holding that an injured worker has the responsibility to prove that he or she is “disabled,” which is defined as being disabled from any job within the claimant’s training and qualifications, not just jobs previously held. In reaching this decision, the Supreme Court noted that the lower court had been inconsistently and improperly applying the standards for proving disability, effectively lowering the claimant’s burden or shifting the burden to the employer. In clarifying the definition of “disability” and emphasizing that the burden of demonstrating a disability is squarely on the claimant, the Supreme Court’s decision is very favorable to Michigan manufacturers, as it will avoid further confusion regarding what employees seeking workers’ compensation must prove, guiding the Court of Appeals in reaching the correct decisions in the future. MMA Lawyers Committee Update: Consent Judgments: DEQ v Rexair, Inc. From 2001-2004, the Michigan Department of Environmental Quality (DEQ) invoked the Circuit Court’s jurisdiction four separate times to resolve a dispute under a 1991 Consent Judgment entered into between the DEQ and Rexair for alleged pollution. After DEQ attempted to unilaterally terminate the pending dispute resolution proceeding without prejudice to its right to re-file the litigation at any time in the future, and without compensating Rexair for the millions of dollars in expenses it had incurred in defending itself, the trial court dismissed the DEQ’s lawsuit, and sanctioned the department for abusing the litigation process by awarding Rexair its costs and attorneys’ fees. The DEQ appealed, claiming the trial court abused its authority. The Court of Appeals vacated the Circuit Court’s rulings, concluding that the record did not support the Circuit Court’s factual findings that the DEQ had engaged in misconduct. In reaching its conclusions, the Court of Appeals failed to respect the proper role of the trial court, concluding that a court administering a dispute resolution proceeding under a consent judgment has less power to control the proceedings (i.e., by requiring a litigant to seek court approval before terminating the proceeding) than a trial court resolving a common contract dispute. MMA members would have been affected by this erroneous decision, as manufacturers who enter into consent judgments with the DEQ or other governmental agencies to resolve alleged regulatory violations must be assured that the court will be permitted to enforce the consent judgments within the power granted to it under the Revised Judicature Act and the Michigan Court Rules. Insight NOV | DEC 2008 Workers’ Compensation: Stokes v DaimlerChrysler Corp. In this case, an employee of the defendant manufacturer filed a claim with the Bureau of Workers’ and Unemployment Compensation, claiming compensation for a disability from a neck and upper back injury. The Bureau decided that the employee had a “disability,” because he could not return to his former job or any previous jobs. On appeal, the Workers’ Compensation Appellate Commission (WCAC) agreed, finding that the employee had a “disability” that precludes returning to work in any job he had ever performed. The manufacturer appealed the 13 The Lawyers Committee is at your service! Michigan manufacturers are encouraged to contact the MMA Lawyers Committee for assistance on important appellate issues. While the Committee and its counsel strive to ensure that the MMA is involved in the most significant cases affecting Michigan manufacturers, we are always available to discuss any case. We encourage member in-house counsel to seek assistance and to join the Committee. For more information, contact David D. Grande-Cassell with Clark Hill PLC, at 517-318-3013 or dcassell@clarkhill.com, or Mike Johnston, MMA vice president of government affairs, at 517-487-8554 or johnston@mma-net.org. Rexair appealed to the Michigan Supreme Court for reversal of the Court of Appeals’ opinion. On 7/22/08, MMA filed an amicus brief, along with the Michigan Chamber of Commerce, in support of Rexair’s Application for Leave to Appeal. On 10/3/08, the Supreme Court, agreeing with Rexair, MMA and the Michigan Chamber of Commerce, reversed the Court of Appeals and reinstated the trial court’s decision dismissing the case and sanctioning the DEQ. Class Actions: Henry v Dow Chemical Company In this case, a group of homeowners sued Dow Chemical Company for allegedly polluting the Tittabawassee River, thus reducing the value of their real estate. Typically, class action lawsuits involve a large number of plaintiffs alleging the same injury or harm. In order to be “certified” as a class to proceed through the legal system, certain factors must be met. An important requirement is that there must be a common question of fact or law applicable to the entire class. Each class member need not have the exact same injury but the injury must generally be the same throughout the class, so that proof of one claim amounts to proof of all similar claims. Class actions can result in huge verdicts because damages may be awarded to “class” members with no involvement whatsoever in the lawsuit. Further, due to the high cost of defending class action lawsuits, many defendants feel pressured into settling to avoid legal fees and the risk of a large verdict. In this case, the certified class included all property owners within the 100-year floodplain of the Tittabawassee River who claimed that dioxin in the river had reduced the value of their property, despite the fact that the common allegation of the existence of dioxin was too broad. An analysis of each of the plaintiffs’ claims demonstrates a 14 Insight NOV | DEC 2008 wide variety of degrees of exposure — from high levels of dioxin down to none. Notably, many of the class properties had never been flooded by the river. Should the certification be upheld, it would set a dangerous precedent; virtually any industrial pollution claim would be eligible for treatment as a class action lawsuit — even if the alleged exposures and harms varied greatly from plaintiff to plaintiff. Michigan trial courts have been loosely interpreting the class action requirements to a dangerous degree, and Dow and MMA argued that the Supreme Court must step in to ensure Michigan keeps up with the national trend of strict interpretation of class action requirements. MMA submitted an amicus brief in favor of Dow Chemical in the Court of Appeals, and is now supporting Dow’s Application for Leave to Appeal to the Michigan Supreme Court, filing an amicus brief in July of 2008 detailing the myriad of problems inherent in inappropriate class action certification. A ruling from the Michigan Supreme Court on Dow’s Application for Leave to Appeal is pending. Contractual Remedies: Davis v Forest River, Inc. In this case, the Michigan Supreme Court is considering the contractual remedies, if any, available to a plaintiff against a manufacturer with which the plaintiff has no contract. The plaintiff purchased a recreational vehicle (RV) manufactured by Forest River, Inc. from a dealer. When the RV failed to operate as expected, the plaintiff sued the dealer and the manufacturer under a number of theories, including the Magnuson-Moss Warranty Act (MMWA) and breach of implied warranty. The jury found that the plaintiff had “proven that he is entitled to revoke his acceptance of the motor home.” The manufacturer appealed, arguing that the plaintiff could not revoke “acceptance” of the motor home because the plaintiff had no contract with the manufacturer, and revocation of acceptance is solely a contractual remedy under Michigan’s version of the Uniform Commercial Code. The Court of Appeals disagreed with the manufacturer, erroneously finding that the plaintiff ’s claims were based on the manufacturer’s alleged breach of implied warranty, not on breach of contract. Relying on a number of distinguishable cases, the Court reasoned that a contract is not required to bring a common law claim of breach of implied warranty and that privity was not a prerequisite for the plaintiff to sue the manufacturer, holding that the plaintiff was entitled to the verdict of rescission. In June of 2008 MMA, together with the Alliance of Automobile Manufacturers, filed an amici curiae brief in the Supreme Court, requesting leave to remedy the erroneous holding of the Court of Appeals. Shortly thereafter, the Supreme Court granted Leave to Appeal, and requested that the parties, including MMA, provide briefs on several of the specific issues raised by the manufacturer and MMA The Supreme Court’s granting of the Leave to Appeal is a first step toward a victory for manufacturers, as the erroneous Court of Appeals’ decision may result in an entirely new class of contract claims against manufacturers who do not contract directly with the consumer. The Committee looks forward to a favorable decision from the Supreme Court confirming that manufacturers should not be liable under contract theories to parties with whom the manufacturer has not expressly contracted. Statutes of Limitation: DEQ v Waterous Co. In 2003, the DEQ filed suit against Waterous for alleged pollution caused by Waterous’ corporate predecessor at its former foundry and manufacturing operation. The DEQ sought damages and an order requiring investigation and remediation of the contamination under Michigan environmental law. Notably, Waterous did not operate or make any changes to the property during its brief ownership and sold it to a developer who demolished the buildings and then sold the property to yet another developer for commercial and residential use. Fifteen years later, after the property was rezoned as residential/commercial, the DEQ provided a grant for remediation of the property so it could be redeveloped for commercial and residential use. In December of 2002, the DEQ formally notified Waterous that it was liable for the contamination at the property and responsible for the release of hazardous substances that exceeded the residential cleanup requirements of the National Resources and Environmental Protection Act (NREPA). Waterous argued that the DEQ’s claim for nuisance was time-barred and that the costs the DEQ sought reimbursement for were not environmental clean-up costs necessary under Part 201 of the NREPA but rather were costs incurred as a result of residential redevelopment of the property. The trial court rejected these arguments, finding the “continuing wrongs” doctrine tolled the statute of limitations for the DEQ’s nuisance claim, holding Waterous to be liable as a corporate successor and requiring the company to perform all cleanup on the property to residential standards. On appeal, the Court of Appeals affirmed this holding, rejecting Waterous’ arguments that it should not be responsible for response activity costs for residential use, as the property was industrial at the time of its ownership, affirming the trial court’s finding that the “continuing wrongs” doctrine tolled the statute of limitations. This decision was inconsistent with Michigan Supreme Court precedent and recent Court of Appeals’ opinions. The high court has held that the continuing wrongs doctrine is inconsistent with statute of limitations that governs actions to recover damages for injuries to persons or property. The Court of Appeals’ decision is in irreconcilable conflict with the previous holdings of the Supreme Court. If the lower court’s holding stands, a manufacturer could face liability for decades after it sells contaminated property, even if the property is cleaned up to the historical zoning criteria. The MMA filed an amicus brief in support of Waterous’ Application for Leave to Appeal to the Michigan Supreme Court, relating solely to the issue of the applicability of the continuing wrongs doctrine to the DEQ’s nuisance claim. A decision is pending. Freedom of Choice of Counsel: Amendments to Michigan Court Rules The Michigan Supreme Court proposed amendments to the current Michigan Court Rules regarding appearances of out-of-state counsel pro hac vice (just this once). The proposed Rule limited out-of-state attorneys to three appearances in Michigan cases per year. The proposed Rule also required out-of-state counsel to submit Certificates of Good Standing from each jurisdiction in which the attorney has been admitted to practice, providing an unnecessary administrative roadblock to practicing in Michigan, when an affidavit from the out-of-state attorney would achieve the same effect. The Committee determined that the proposed Rule as drafted did not effectively balance the need to regulate attorneys with the rights of individuals and companies to secure the legal representation of their choice. In today’s global economy, many MMA members’ business activities cross The MMA Lawyers Committee was expertly served in 2008 by Chair Rick A. Pacynski of Masco Corporation and Vice Chair Toby Threet of Dow Chemical Company. On behalf of all Michigan manufacturers, many thanks to them, and the other MMA members that have provided their time and resources to support the work of the Lawyers Committee: Amerisure, Inc., Chrysler LLC, The Dow Chemical Company, DTE Energy, Ford Motor Company, General Motors Corporation, Masco Corporation, and PVS Chemicals. state and international borders, and manufacturers can be embroiled in litigation in multiple jurisdictions. Thus, protection of manufacturers’ legal interests requires MMA members to deploy attorneys to those jurisdictions with both legal expertise and a familiarity with each member’s complex business practices and structure. Restrictions on multi-jurisdictional practice compromise manufacturers’ ability to protect their legal interests by increasing the costs (by requiring unnecessary and duplicative legal advisors) and, in many instances, impeding the effectiveness of legal services by eliminating manufacturers’ ability to leverage the knowledge base of their selected counsel. On 5/21/08, counsel for MMA provided comments to the Supreme Court during a hearing on the proposed Rule. The comments comprised a summary of national trends with respect to pro hac vice appearances and argued that, if Michigan adopted the proposed Rule, it would be among the most restrictive states for out-of-state attorneys to practice. MMA also argued that the Certificate of Good Standing requirement is inefficient and suggested that affidavits from the attorney would suffice. Subsequently, the Court adopted an amended version of the proposed Rule, incorporating many of MMA’s suggestions. Out-of-state attorneys may appear five times per year (as opposed to the three appearances urged by the State Bar of Michigan). Furthermore, the Michigan Supreme Court dropped the Certificates of Good Standing requirement, agreeing with MMA that affidavits would suffice. These amendments represent a clear victory on behalf of manufacturers who value expertise and efficiency in effectively managing their legal affairs. David D. Grande-Cassell is the managing member of the Lansing office of Clark Hill PLC. He can be reached at 517-318-3013 or dcassell@clarkhill.com. Insight NOV | DEC 2008 15 Tax Update Employer Alert: Solvency Tax on the Horizon for UI Payments Tax Rate By Richard A. Hooker If you are a contributing employer for purposes of Michigan’s Unemployment Insurance (UI) system, you need to be aware of a possible add-on to your UI tax rate in 2009. Since it appears Michigan will have outstanding loan repayment obligations to the federal government at the end of 2008, the Employment Security Act will likely call for assessment of a Solvency Tax on some employers to assist the State in repaying these obligations. All contributing employers in Michigan have a “rating account” on record with the Unemployment Insurance Agency (UIA). An individual employer’s balance in this rating account is a comparison between all benefits ever paid out to employees and former employees (that have been charged to the employer) and all contributions ever paid into the Unemployment Trust Fund by the employer, calculated as of June 30 each year. The account balance can be positive (contributions greater than benefits) or negative (contributions less than benefits). x The first $9,000 earned by each employee = Employer Contribution The Solvency Tax is calculated pursuant to a prescribed formula and can range as high as 2.0 percent. This percentage is then added to the sum of the other three tax rate components for any employer that has a negative account balance to establish that employer’s tax rate for the calendar year. The employer then pays contributions for the calendar year at that rate on all taxable earnings: If, for example, the Solvency Tax component of the rate were determined to be 1.0 percent, the annual incremental cost to affected employers would be $90 for each employee earning $9,000 or more in wages. A potentially affected employer does have one possible way to avoid this Solvency Tax: the “voluntary payment,” which can be made any time up to, and including, the 30th day from the mailing date of the employer’s Annual Rate Determination Notice. In other words, the employer can pay off the negative account balance and go forward with a tax rate that does not include this Solvency Tax component. Of course, a cost benefit analysis is necessary to determine if the savings (Solvency Tax percent x projected taxable earnings) are sufficient to justify the amount of the necessary voluntary payment. Either way, the lesson is clear: be watching for your Rate Determination Notice and whether it includes a Solvency Tax. If it does, you should perform the calculation to determine whether a voluntary payment makes sense. Richard A. Hooker is a partner with Varnum, Riddering, Schmidt & Howlett LLP. He can be reached at rahooker@varnumlaw.com or 248-567-7403. MMA Offers New Tax Institute This will be the first tax season under the new MBT and MMA has partnered with Varnum Law to create a program to walk manufacturers through the new forms to be released in November to ensure that they are prepared properly to avoid potential penalties and to maximize credits they are entitled to. Topics to be discussed include exclusion from gross receipts, calculating estimated payments and the impact of property classification on MBT credits. The program will also feature a post-election federal tax planning segment that will include estate plans, deferred compensation and IRS audit advice in response to the increase in both the number of audits conducted and the penalties assessed. For more information or to register for this program, contact LeAnn Hicks at 800-253-9039 (press 9 and ext. 557) or 517-487-8557 or visit the MMA Web site: www.mma-net.org/ education/seminars.asp. MMTC Headquarters, Plymouth 12/2/08 Tassel M-TEC, Grand Rapids 12/5/08 9:00 a.m. to noon Watch the MMA Web site for details: www.mma-net.org. 16 Insight NOV | DEC 2008 The Economy www.mma-net.org Michigan Business Activity Index Aug. 87 Jul. 89 Change -2 Year ago 94 Change -7 “The unequivocal message of our Index is that the Michigan economy is contracting at a faster pace this year compared to last. With some of the weakness in August due to utility output related to mild weather, the Index may rebound a bit in September. But I expect our Index to make new lows soon given the intensifying national recession and the implication of that for Michigan-based auto companies.” — Dana Johnson, chief economist at Comerica Bank Source: Comerica Bank (www.comerica.com). The MBAI represents 10 measures of economic activity. 1996 base year=100. Purchasing Managers Index Sep. PMI New orders Production Employment Supplier deliveries Inventories Customers’ inventories Prices Backlog of orders Exports Imports Aug. 49.9 48.3 52.1 49.7 50.3 49.3 54.5 77.0 43.5 57.0 48.5 % pt. change -6.4 -9.5 -11.3 -7.9 +2.2 -5.9 -1.0 -23.5 -8.5 -5.0 -4.5 43.5 38.8 40.8 41.8 52.5 43.4 53.5 53.5 35.0 52.0 44.0 “The PMI indicates a significantly faster rate of decline in manufacturing during September, marking a departure from the 2008 trend toward negligible growth or contraction each month. This is the lowest level for the PMI since October 2001. This month’s report is showing prices rising at a much slower rate, as the Prices Index fell to the lowest level in 21 months. Export orders continued to increase, but at a slower rate than in August.” — Norbert J. Ore, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee Second Quarter Productivity, Revised All Manufacturing Industries Durable Goods Industries Nondurable Goods Industries -2.2 -4.5 0.2 Source: U.S. Department of Labor Bureau of Labor Statistics (www.bls.gov/lpc/). Source: Institute for Supply Management (www.ism.ws). A PMI reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. Consumer Price Index Sep. CPI 218.8 Aug. 219.1 % change -0.1 Producer Price Index for the Net Output of Total Manufacturing Sep. Finished goods 116.6 Aug. 117.2 % change -0.5 Source: U.S. Department of Labor Bureau of Labor Statistics (www.bls.gov/cpi/home.htm). The CPI is a measure of the average change in prices over time of goods and services purchased by households. 1982-84 base years=100. Source: U.S. Department of Labor Bureau of Labor Statistics (www.bls.gov/ppi/). The PPI is a family of indexes that measure the average change over time in the prices received by domestic producers of goods and services. 1982 base year=100. Average weekly hours and earnings in Michigan’s manufacturing industry Aug. Hours Jul. % change Year ago % change 41.6 41.0 $1025.00 1.5 0.7 41.7 $997.46 -0.2 3.5 See the MMA Web site for the most current economic news. Earnings $1032.10 Source: U.S. Department of Labor Bureau of Labor Statistics (www.bls.gov/sae). Insight NOV | DEC 2008 17 Case Study Demmer Corporation and Leap, Inc. Demmer Corporation: A National and Local Asset By Amy Shaw Demmer Corporation builds vehicles that help ensure the safety of the men and women that put themselves in harm’s way to protect and defend our nation. That’s truly something to be proud of. The commitment of company president and CEO Bill Demmer to the manufacturing industry and to the Lansing area is inspirational as well. The Demmer story is one of successful transformation. The company started in 1951 as a tool, die and specialty machinery manufacturer and diversified into military land components in the ’70s. By the 1990s, Demmer struggled, along with many other manufacturers, as the auto industry began contracting and the legacy military vehicle production that had served them well for two decades wound down. It wasn’t easy, but Demmer was determined to do what needed to be done to overcome the changes that threatened the long-term survival of the company. Demmer dug in and made continuous improvement a priority. A new focus on developing customer service, product development, and rapid prototyping expertise helped the company to, not only survive the market challenges they were up against, but actually grow the company from 350 employees in 2004 to more than 1,500 employees today, making the company one of the Lansing area’s largest employers. The story gets even better. Demmer didn’t stop with turning his company around. He has applied the same level of commitment that took the company from uncertainty to success to help support and advance manufacturing in his hometown. Demmer rolled up his sleeves and worked with Lansing Community College (LCC) to develop an apprenticeship program to help grow the number of skilled workers in the area. The company also worked with LCC to train more than 500 workers with new skill sets under the no worker left behind program — an effort that was recently recognized by Governor Granholm as being a “model partnership” for the program. Demmer is also actively involved with Leap, Inc., an economic development group that is aggressively working to strengthen the entire Mid-Michigan manufacturing sector by bringing industry and academia together to enhance business processes and opportunities. Demmer sits at the table with Michigan State University (MSU) president Lou Ann Simon and other key local business and education leaders to carry out the important economic development mission of this vibrant organization. While the effort is primarily local, the group is interested in helping the manufacturing community as whole through their efforts and has invited MMA to participate to identify opportunities for using Leap as a model that can be emulated in other areas of the state. Leap is “committed to transforming the greater Lansing region into a global economic powerhouse.” To achieve this goal, the group is focusing on six essential strategic initiatives: Leadership Initiative – Establishing Leap as the one-stop shop for regional economic development policy and solutions; Value-Added Enterprise Initiative – Expanding and attracting globally competitive businesses; New Enterprise Initiative – Developing resources and programs to encourage and assist in the development of sustainable businesses. MSU Integration Initiative – Integrating MSU and its world-class resources and people into all aspects of the community; Global Community Initiative – Highlighting strengths in the global marketplace to enhance the greater Lansing region’s growth as a progressive, global community; and Emerging Talent Initiative – Retaining, attracting and developing a world-class work force that meets the needs of globally competitive businesses. See the Leap Web site for more information: www.leapincorporated.com. Amy Shaw is editor of the Michigan Manufacturing Insight. She may be reached at 517-487-8513 or shaw@mma-net.org. Do you have a success story to share about your company? An inspirational local economic development effort that could serve as a model for other areas of the state? A program, initiative or project to advance the manufacturing sector? If you do, we’d love to feature your story in a future issue of Insight. Contact Amy Shaw, MMA director of communication and education at shaw@mma-net.org or 517-487-8513. 18 Insight NOV | DEC 2008 May 12, 2009 May 12, 2009 Mark Your Calendar May 12, 2009 for the 2009 MMA CEO Forum focusing on “the Changing Face of Manufacturing” May 12, 2009 Registration is now open. Seating is limited. 2008 Highlights TAKE ADVANTAGE OF MMA’S HR RESOURCES •Competitive-rate insurance and benefit programs • Access to experienced HR and law professionals at MMA-member rates • Compensation and benefit surveys for benchmarking • Comprehensive employment law handbook • Free required posters • Records retention guidelines • Quality, low-cost seminars and training Call 517-487-8551 or e-mail membership@mma-net.org. News Briefs Water Withdrawal Tool Being Tested The revolutionary online water withdrawal assessment tool that the MMA was successful in having included in the recently adopted Great Lakes Compact legislation is up and running. Businesses and residents can use the tool to determine the potential impact of requests for large volume wells or surface water pumps. The tool has been launched for testing and comments between now and 7/9/09 when it will become mandatory, rather than voluntary. The online tool can be accessed online: http://www.miwwat.org. Great Lakes Compact Ratified by Congress The long road to ratification was finally complete with the signing of the Great Lakes Compact (GLC) by Congress on 9/23/08. MMA was instrumental in getting Michigan to sign on to this landmark effort that will ensure control of the economic value of our water resources remains in the Great Lakes Basin. The measure passed Congress unanimously in the Senate in August and recently passed the House by a vote of 390 to 25. Michigan’s own U.S. Representative Bart Stupak (DMenominee), however, was in the “no” column on the issue. In explaining his vote, the congressman indicated that he voted against the measure because the provisions banning large-scale diversions weren’t strong enough. Stupak was the only vote against the GLC from the Michigan Delegation. shift over the next five years. By law, the increase to residential customers cannot be more than 2.5 percent per year. Bush Approves $25 Billion Loan to Auto Industry A spending bill approved by President Bush in October included $25 billion in government loans that are intended to help the auto industry retool to produce more fuel efficient vehicles. Taxpayer funds, totaling $7.5 billion, are being set aside under the bill to guarantee the low interest loans. General Motors Corporation, Ford Motor Company and Chrysler LLC joined forces to lobby for the loans to help overcome the cost increases associated with revamping product lines to meet consumer demand and to comply with the required 35-miles-per-gallon fuel efficiency standards that must be implemented by 2020. Auto suppliers are also eligible for the loans, which are to be administered by the U.S. Energy Department. The Cost of Natural Gas is Going Up The Public Service Commission released its annual report on 9/29/08 and had both good and bad news to share. The good news is that there is expected to be plenty of energy to keep homes and businesses warm this winter. The bad news is the cost of that heat will be higher than last year — especially for those who use natural gas. According to the report, the cost of natural gas (which is used to heat 79 percent of homes in Michigan) is expected to increase 21 percent, heating oil is expected to be up 13 percent and propane will cost 3 percent more than it did in 2007. MPSC Doesn’t Wait for Governor’s Signature to Move Ahead on Energy Plan Before the Governor signed Michigan’s new energy plan into law, the Michigan Public Service Commission (MPSC) was already setting it into motion. On 9/23/08 the MPSC ordered Detroit Edison and Consumers Energy to disclose their plans for implementing the deskewing requirements of the legislation. The MPSC orders required the two utilities to file briefs by 10/10/08 and replies by 10/31/08, revealing how they intend to phase in the rate Michigan to Create Centers of Energy Excellence Renewable energy research is expected to take a giant step forward through the creation of three Centers of Energy Excellence in Michigan. See the MMA Web site for more news: www.mma-net.org. 20 Insight NOV | DEC 2008 photo courtesy of Mariah Power The centers are to bring private companies, public funding and university entities together to accelerate renewable energy research. The public funding component totals $27 million from the 21st Century Jobs Fund. In Flint, the partnership will include Kettering University and Swedish Biogas International and will focus on converting waste water into biofuel. Sakti3 of Ann Arbor will be working with the University of Michigan on the next generation of lithium ion batteries. The third center will be located in the Upper Peninsula and will involve Mascoma Corporation of Cambridge, Mass., in partnership with Michigan State University and Michigan Technological University. This center will develop a cellulosic ethanol plant that is expected to produce 40 million gallons a year. Cutting Edge Wind Turbines to be Made in Manistee Mariah Power of Reno, Nev., will be partnering with Manisteebased MasTech Manufacturing, Inc. to produce “urban friendly” vertical wind turbines, a venture that is expected to bring hundreds of new jobs to the northern Michigan community. The Windspires® to be produced by the company can generate approximately 2,000 kilowatt hours per year with wind speeds of just 12 miles an hour. Each unit stands about 30 feet high and operates with three sets of airfoils that catch the wind and turn a 20-foot rotor to generate electricity for both commercial and residential use. According to MasTech operations manager John Holcomb, Michigan will be the only place in the world where this cutting edge, clean technology will be built. The partnership was made possible through a $400,000 Community Development Block Grant from the Manistee County Board on 9/16/08 that helped seal the deal in the site selection process. Member News Send your press releases to communications@mma-net.org or Insight, P.O. Box 14247, Lansing MI 48901-4247. Pfizer Gelfoam Team Receives State’s Highest Ergonomic Award The Pfizer Global Manufacturing Kalamazoo site’s Gelfoam Ergonomics Team received the Ergonomic Success Award from the Michigan Occupational Safety and Health Administration (MIOSHA). The MIOSHA program is part of the Michigan Department of Labor & Economic Growth (DLEG). The ergonomic improvements in the Gelfoam Area have significantly reduced the number of repetitive motion injuries for its employees from six in 2004 to none in 2006. Whirlpool Brand and Newman’s Own Reward Consumers Who Proclaim ‘Let’s Eat In’ Seeking to help consumers identify easy-to-prepare, high-quality dinnertime solutions, Whirlpool brand and Newman’s Own® joined forces to launch the “Let’s Eat In” recipe contest, hosted on FoodNetwork.com. After careful consideration, the Let’s Eat In judges selected five winners from among nearly 2,000 recipes submitted. Each recipe can be prepared in 30 minutes or less without sacrificing taste or quality. Herman Miller Recognized for Safety and Health Herman Miller Inc.’s Main Site Operations in Zeeland received the Michigan Voluntary Protection Program (MVPP) Star Award from the Michigan Occupational Safety and Health Administration (MIOSHA) for workplace safety and health excellence. The MIOSHA program is part of the Michigan Department of Labor & Economic Growth. This is the fourth Herman Miller facility in Michigan to achieve Star status. The GreenHouse Seating Operations received the award in 2005, the Spring Lake 171st Avenue facility received the award in 2006 and the Midwest Distribution Center received the award in 2007. Management Changes at American Axle American Axle & Manufacturing, Inc. (AAM), announced the following officer and executive appointments in early October: David A. Culton was appointed vice president, Unibody Vehicle Business Unit. Prior to his new assignment, Culton served as AAM’s Controller. Michael J. Lynch was named Controller. Previously Lynch served as AAM’s director, Commercial Analysis. Thomas O. Delanoy was appointed executive director, Launch & Manufacturing. Prior to this assignment, Delanoy served as executive director, Special Projects. Allan H. Rae has been appointed executive director, Human Resources & Business Systems. Previously he served as executive director, Business Systems. Crash Test Dummies Going Virtual The world of crash test dummies will soon expand into a virtual one. Traditional crash test dummies made of rubber and steel will soon be joined by computer-generated virtual reality Human Body Models (HBMs) designed with precise detail. The HBMs are intended to help simulate human responses in automobile crashes. The HBMs will help researchers better predict the effect of trauma on the body. The HBMs were created through the Global Human Body Models Consortium, LLC (GHBMC). Established in 2006, the GHBMC is composed of nine automotive manufacturers and two automotive system suppliers, including MMA members Chrysler LLC, Ford Motor Company, General Motors Corporation and TRW Automotive. Ground Broken for Michigan’s Largest Solar Power Array Governor Jennifer Granholm and Lansing Mayor Virg Bernero joined Lansing Board of Water & Light (BWL) General Manager J. Peter Lark for the groundbreaking ceremony of the largest solar cell array in Michigan. The Cedar Street Solar Array is expected to be operational by mid-December. There will be 432 solar panels in the array. Combined, they will furnish electricity sufficient to power about 50 homes. Ford Offers iPhone, iPod Users Software to Enhance Photos in Ford Flex Ford is offering iPhone and iPod touch users a unique and free software application from the Apple App Store that enables them to enhance existing or new photographs, courtesy of the all-new 2009 Ford Flex. Ford partnered with software developer, the Tao Agency, to develop the Flex Photo Lab application, which allows iPhone users to take new or archived photos and apply filters to improve image quality or add dynamic effects with the touch of a finger, or a tilt and a twist. “The application behaves essentially like the iPhone itself,” said Jeff Schamanek, vice president, Emerging Trends, Wunderman, which is the Ford agency that worked with Tao to develop the software. “You manipulate the photos the same way by scrolling, pinching and tilting using the unique iPhone features.” In addition to enhancing photos, the Flex Photo Lab application also allows users to “Discover Flex” through 360degree exterior and interior views, vehicle information and a photo gallery. There is also a “Locate the Flex” feature that uses the iPhone Mapping application to help users find their nearest Ford dealer. Jack Van Coevering, former Chairman of the Michigan Tax Tribunal Tax Issues? THINK VARNUM. Meet Jack Van Coevering, one of Varnum’s trusted tax advisors. Our group of experienced tax attorneys and professionals can guide you through your toughest tax challenges. www.varnumlaw.com 866-4VARNUM N Grand Haven N Grand Rapids N Kalamazoo N Lansing N Novi Upcoming Events | | SEMINARS, MEETINGS AND EVENTS OF INTEREST TO MANUFACTURERS SUNDAY MONDAY MMA Co-sponsored Seminar: Defending Price™, Auburn Hills | TUESDAY | WEDNESDAY | THURSDAY Organization of Women in International Trade: After the Election – Trade in 2009 www.owit.org | FRIDAY | SATURDAY MMA Air Quality Advisory Committee Meeting, Lansing 517-487-8552 or enright@mma-net.org 7 8 MMA Tax Advisory Committee Meeting, Lansing 517-487-8552 or enright@mma-net.org World Trade Center Detroit/Windsor: Basics of Exporting, Allen Park www.wtcdw.com 9 10 DEQ: Air Permit Application Workshop for First-Time Applicants www.michigan.gov/deq 11 12 13 14 15 16 17 December January MMA Tax Advisory Committee Meeting, Lansing 517-487-8552 or enright@mma-net.org MMA Air Quality Advisory Committee Meeting, Lansing 517-487-8552 or enright@mma-net.org 7 8 9 10 11 12 13 14 15 DEQ: SARA Title III Tier Two Workshop, Grand Rapids www.michigan.gov/deq 16 17 18 19 20 DEQ: SARA Title III Tier Two Workshop, Lansing www.michigan.gov/deq 21 DEQ: SARA Title III Tier Two Workshop, Livonia www.michigan.gov/deq 22 23 24 25 26 27 28 29 30 31 See MMA’s Web site, www.mma-net.org, for details on MMA seminars and the most up-to-date calendar of events or call 517-487-8557. 24 Insight NOV | DEC 2008 OUR WORKERS' COMPENSATION PROTECTS YOUR BOTTOM LINE. Amerisure Insurance has built a solid reputation for giving manufacturing and construction companies exactly what they need—high quality Workers’ Compensation programs that protect employees and save money. Our strength in Workers’ Compensation is largely due to a fully-integrated delivery system that includes exceptional Claims and Loss Control services, as well as cost-effective Managed Care and Return-To-Work programs. We also provide a Pharmacy Benefits Manager and Claim Bill Review for even greater assistance in controlling your Workers’ Compensation medical costs. For qualified claims, our exclusive Advocate ClaimsService includes calls every 90 days between dedicated Service Team members, the policyholder, and agent to share information for successful claim resolution and Return-To-Work strategies. This exceptional service, combined with superior coverage and competitive rates, has placed Amerisure consistently in the Ward's 50 Benchmark Group and made them a multiple year recipient of the Alfred P. Sloan Award. SM For more information on Amerisure coverages, contact Michigan Manufacturers Association at www.mma-net.org Having trouble finding skilled workers? That could be because you’re looking in the wrong place. Now there’s a jobs portal specifically for the manufacturing industry — MiManufacturingJobs.com. Sponsored by the MMA, in conjunction with NetXert, this site is an exclusive service for our members. As a member of MMA, we’re offering you unlimited access to the site without charge through the end of the year! You can post as many positions and view as many resumés as you’d like during that time. After that, unlimited access is yours for only $200 per year. With MiManufacturingJobs.com, you can also: • Track the interviewing process by job • Score applicants • Review the progress of all posted jobs • Pinpoint jobs by skill category • And much more This is an extremely powerful resource that you can’t afford not to try! Member information has already been added to the site, so members need only log on to MiManufacturingJobs.com using their MMA ID (If you do not know your MMA ID, contact MMA. See contact information below). When entering the system for the first time, type “password” to login and set your own security word. Job seekers are being driven to the site by career centers, learning institutions, social service organizations and other interested groups throughout the state. There are hundreds of resumés posted already. Don’t miss out on this incredible opportunity to attract top talent to your organization! For more information, contact Dane Cooke, MMA Membership Outreach Specialist, 800-253-9039 ext. 551 or 517-487-8551 or cooke@mma-net.org. www.mma-net.org Insight NOV | DEC 2008 19