Merit fall 2007 by ABCofMichigan

Fall 2007 Publication of ASSOCIATED Builders and Contractors of Michigan

Triangle Associates “LEEDS” the way in Green Building

also: Prevailing wage: time for repeal Working to stop union-only plas

www.abcmi.com

Fall 2007

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is your ad missing from the maga zine? If so, you are missing an opportunity to showcase your company with the construction industry across the entire state. Your ad, in this one publication, will reach all the 1200 ABC of Michigan member companies, several nonmembers and key decision-makers and policy makers throughout the state – now that’s value! Advertising in Michigan Merit is the one-stop source for effectively marketing statewide to the merit shop construction industry in Michigan. Make sure you don’t miss this valuable opportunity again – your competitor won’t. Visit www.abcmi.com or contact Greg O’Neil at abc.org.ads@ sbcglobal.net or 1-800-288-4248.

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2 i Michigan Merit

Fall 2007

Contents Fall

2007

page 12

Vol.1, Issue 2 4

Executive Perspective

West Michigan based Triangle Associates has become a leader in green building projects, with 25% of their projects going green.

5 Triangle associates recognized for green building

Mackinac Center’s Paul Kersey explains that Michigan tax payers benefit by having competition among contractors.

working to stop union-only PLAs (project labor agreements)

ABC of Michigan unveils new web page to provide information and tools to fight PLAs in Michigan.

Current Employee Handbooks

Current Employee Handbooks keep employers up-to-date, employees informed and companies out of trouble.

spotlight on members

Members Making News Around The State

legislative update

ABC of Michigan fights to keep construction free from services tax; ABC of Michigan calls for repeal of prevailing wage.

page 5

Page 5

The Herman Miller Marketplace building exterior is constructed with pre-cast concrete, aluminum panels, and window glass and glazing.

Prevailing wage: time for repeal

12 ArounD the state

on the cover:

Chapter News

Saginaw Valley: 13 be a hero! Herman Miller’s Marketplace designed Congratulations to the ABC Saginaw Valley Chapter 2007 Scholarship Recipients by Triangle Associates maximizes are:Find Out How! x Joseph Schoof, Merrill High School x Geraldo Watkinson, Bay City Western High School energy efficiency. 15 advertisers index x Robert (Zack) Most, Breckenridge High School

Saginaw Valley Chapter Gives ABC National Its Craft Instructor of the Year

legislative update

SPOTLIGHT on MEMBERs

Each year, ABC presents the “Craft Instructor of the Year Award” to an instructor who possesses outstanding teaching credentials and demonstrates a commitment to preserving the high educational standards of the merit shop and the construction industry. This year’s award was presented to Saginaw Valley member, Gerry Kenyon, who was selected from a field of five finalists.

Page 10

Kenyon has been a millwright instructor at ABC’s Saginaw Valley chapter since 1999 and has taught all five levels of the National Center for Construction Education and Research (NCCER) millwright program.

ABC Fights Services Tax on Construction Projects

Page 11

"Gerry Kenyon brings more than 24 years of craft excellence to the classroom," said Dave Meyer, 2007 ABC national chairman. "Gerry’s superior teaching skills and commitment to his students and the merit shop philosophy strengthen the foundation of our workforce. It is an honor to recognize his dedication to effectively training the next generation of construction craft professionals."

around the state Chapter News

Page 12 www.abcmi.com

Fall 2007

EXECUTIVE PERSPECTIVE Education is and will always be critical to the success of the construction industry and is something that Associated Builders and Contractors has made a commitment to fostering and growing. We believe in education because we believe in the future of Merit Shop construction in Michigan.

BOARD OF DIRECTORS Jim Struble - President RCI Electric - Southeastern MI Chapter

Dan Kozakiewicz - Vice President Three Rivers Corporation - Saginaw Valley Chapter

David Sheffield - Secretary/Treasurer Onslow-Sheffield, Inc. - Southeastern MI Chapter

When you consider that United States Department of Labor statistics indicate that nearly eighty percent of the Michigan construction workforce chooses not to belong to a labor union, the need, as well as the demand, for ABC to offer cutting edge skilled craft training becomes evident.

Bill Buyak Capital Steel - Central MI Chapter

Richard Dvorak Answer Heating & Cooling - Saginaw Valley Chapter

Gary Hengesbach Westphalia Builders - Central MI Chapter

Rod Kloha Circle “K” Service, Inc. - Saginaw Valley Chapter

Bill Molnar Wm. Molnar Roofing Co., - Southeastern MI Chapter

Todd Oosting CD Barnes Associates, Inc. - Western MI Chapter

John Parish Parish Corporation - Central MI Chapter

Curt Petersen The CSM Group - Western MI Chapter

Fred Pylman P & K Steel - Western MI Chapter Michigan Merit Contributors Publisher - Christopher Fisher Managing Editor - Mary Boardway, CAE Editing & Advertising: Public Relations Enterprises Printing: BRD Printing, Inc. Art Direction: Connection Graphics, LLC Michigan Merit (ISSN# 193-9051) is the official publication of Associated Builders and Contractors of Michigan (ABC) and is published quarterly at 120 N. Washington Sq, Suite 805, Lansing, MI 48933, (517) 853-2545. Please direct all inquiries to the previous address. Articles written by outside authors do not necessarily reflect the views of Associated Builders and Contractors of Michigan. ABC of Michigan reserves the right to reject or edit all material submitted for publication. The appearance of an advertisement in Michigan Merit does not constitute endorsement of the advertiser, its products or services, nor do Michigan Merit or Associated Builders and Contractors of Michigan guarantee or warrant any claims or offers made by the advertisers.

Around our state, each ABC chapter offers craft training and education programs that are among the best in the industry. Our educational programs are accredited by the National Center for Construction Education and Research (NCCER), which provides world-class craft training materials and opportunities for leadership and growth. NCCER also provides skills assessments, construction management academics, and safety programs. Moreover our training programs are approved with the United States Department of Labor. ABC’s commitment to education does not stem from a government mandate or regulation (although new regulations are always lurking). The reason for ABC’s commitment to education and training is because we believe in quality and safety. We operate on the premise of our construction workforce being a well trained, well paid class of craft professionals who take pride in building our state and the places where we live and work. The result of our commitment to education and training speaks for itself. Earlier this year the skills and knowledge of ABC trained craft professionals and instructors from Michigan were truly put to the test to see how they stand up not simply among their peers in Michigan, but amongst competitors from around the country at the National Craft Championships. A Saginaw Valley Chapter member was named the best millwright in the country. From the Southeastern Michigan Chapter came the third best plumber in the country. From the Western Michigan Chapter was one of the finalists for “Craft Professional of the Year.” In addition, the Saginaw Valley Chapter produced the 2007 “Craft Instructor of the Year.” Part of what we believe at ABC is that “the merit shop movement is a movement for the betterment of the individual… the construction industry… and the nation.” Our commitment to educational excellence is always going to be one of the cornerstones of this belief. H Yours for the Merit Shop,

Permission to reprint in whole or in part is hereby granted, provided the following credit line is used: “Reprinted by permission from Michigan Merit, a publication of Associated Builders and Contractors of Michigan.”

MichiganMerit Merit 4 i iMichigan

FallFall 20072007

Chris Fisher Executive Director

FEATURE Article W e s t Michig a n ’ s T ri a ngl e A s soci at e s Recogni z ed f or E xcel l ence in Green Buil ding Michigan has become a hotbed of green building design and Grand Rapids based Triangle Associates Inc. is right in the thick of it. Approximately 25 percent of Triangle’s projects involve LEED (Leadership in Energy and Environmental Design), a green building certification program that operates under the auspices of the US Green Building Council (USGBC). Grand Rapids has been recognized by the USGBC as a city at the vanguard of the green and sustainable building movement in North America. Triangle is the construction company having the most sustainable projects either completed or in process. “Our first LEED client was Herman Miller, who wanted us to design a sustainable building under program guidelines,” notes Jim Huyser, VP in charge of operations and a principal of the company who has been with Triangle for 40 years. At first glance, The Herman Miller Marketplace looks like any other contemporary office building yet it was designed and constructed using green building techniques. The design and open atmosphere of the Herman Miller complex takes advantage of daylight views from all work stations. It has state-of-the art systems that maximize energy efficiency. The building exterior is constructed with pre-cast concrete, aluminum panels, and window glass and glazing. The building incorporates a center court yard with a water fall which assists with humidity levels in the building. Triangle has since completed or is currently working on 19 projects in various stages of LEED certification. For Craig S. Datema, AIA, president/CEO one project in particular that stands out is St. Mary’s Richard J. Lacks Cancer Center in Grand Rapids. The 175,000 square foot facility required careful planning. “Construction began with the demolition of an existing building. Due to the tight sight and close proximity to the hospital, careful construction execution was required to complete the demolition while maintaining operations in the adjacent buildings,” Datema said. The Lacks Cancer Center includes four operating rooms with support areas which feature Corian walls by Dupont, which

United States. However the Grand Rapids facility will be the first one in Michigan to be constructed using LEED certification guidelines. Other environmentally friendly projects built by Triangle include the recently constructed Kingsbury Place, a residential community for low-income challenged individuals, and a project that earned itself the first “Green Communities” certification in the state of Michigan from the Enterprise Foundation as well as LEED silver certification. The buildings are wood framed, shingle roof, vinyl siding and masonry exterior. Datema said the project had specific criteria which included a unique solution using a cistern to collect rainwater to be used for site irrigation. Exterior construction of the Hope Lodge which holds the American Cancer Society’s regional offices and suites for visiting patients.

Datema said is an easy to maintain solid surface material. “The material offers easy maintenance, effective sterilization and eliminates down-time associated with painted walls. The surgery rooms support cancer treatment and general outpatient surgery for non-cancer related procedures,” he said. “It was the first hospital in Michigan to be LEED certified and only the second hospital in the country.” In 2005, Lacks Cancer Center won an Award of Excellence for Institution Construction from Associated Builders and Contractors, and in 2006 it won the Award of Excellence in Green Building.

A Long and Impressive Business History Triangle Associates, which was formed in 1918 as George Datema & Sons, will soon celebrate its 90th year in business. It’s been one of Western Michigan’s 101 Best and Brightest Companies to work for four consecutive years; so named by the Michigan Business & Professional Association.

The Hope Lodge Goes Green One of Triangle’s latest green building projects is the American Cancer Society’s Hope Lodge facility in Grand Rapids. The $6.8 million, 38,000 square foot project is a free housing facility for cancer patients and their families. It offers them a place to live while they are away from home. In addition to a comfortable and resourceful environment, the Hope Lodge provides convenient accommodations such as private rooms and bathrooms, with space for a family member or caregiver. “Lodges offer kitchen facilities and rooms for gathering to watch TV or to share encouragement. Transportation to nearby treatment is also provided through Hope.” According to Datema, the first floor is home to the American Cancer Society’s regional offices. The second floor will house 20 suites for visiting patients, leaving the top two floors for kitchens, a grand dining room, meditation rooms and several common areas. There are approximately 27 Hope Lodges scattered throughout the

Installation of the cross atop the Saint Mary’s Lacks Cancer Center.

The company is under management of the fourth generation of the founding family. Triangle’s 180 employees are divided into project teams consisting of three principals, project managers, engineers, coordinators, superintendents, marketing, accounting, office support staff, and an estimating team that is one of the largest in-house estimating teams for a company this size. Triangle has taken the best from the past – a solid work Continued on page 8

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Fall 2007

FEATURE Article Prevailing Wage: Time for Repeal

Paul Kersey gan’sByForprevailing years Michiwage

law has been a thorn in the side of merit shop contractors. Aside from forcing contractors to pay union wages on all state-financed construction – including public schools that make use of state guaranteed bonds – the law has been enforced in a way that appears to be designed to create problems. While the law calls for the use of union contracts to set rates, the Department of Labor and Economic Growth gives little guidance on what work classifications apply, often leaving contractors to guess at what wage must be paid. The state compounds matters by publishing a list of prevailing wage “violators” that provides no details or context, creating an appearance of bad faith where the truth is just as likely to be confusion or honest error. If there is a silver lining to the current economic and fiscal crisis that has befallen Michigan, it is that the prevailing wage has come under sharp criticism, possibly opening up opportunities for substantial reform or even repeal. The Mackinac Center recently released a report estimating that prevailing wage adds 10 to 15 percent to the cost of construction, costing Michigan taxpayers $250 million annually without improving the quality of construction. The law appears to reduce jobs in construction, and the law mostly protects the incomes of above-average wage workers; hourly wages for construction workers as a whole (both union and merit shop) are on average 28.1 percent higher than the average for workers in Michigan overall. In 1965, when the prevailing wage law was passed, unions were much more influential,

6 i Michigan Merit

Fall 2007

especially in the construction industry. While exact numbers for union members do not go back that far, the evidence indicates that if unions did not represent a majority of construction workers at the time, they came pretty close. One could plausibly say that union wages “prevailed” in construction at the time, and that the law cost taxpayers relatively little at the time. But today unions represent less than a quarter of the construction workforce, 22.1 percent to be precise. Union wages are anywhere from 40 to 60 percent higher than the average for the construction industry as a whole, meaning that what Michigan calls a “prevailing wage” is actually a premium wage paid to a shrinking minority of workers. What Michigan voters may not fully recognize is that many non-unionized construction workers receive wages that are well above average: For instance, in 2005 merit shop carpenters in the Detroit area received an average wage of $20.88 per hour, well above the average wage of $17.72 for all workers (not just limited to construction) in the Detroit metropolitan area. Electricians earned $25.50, bricklayers earned $27.43. None of these workers, earning better than average salaries compared to the workforce as a whole, is in need of a state-mandated wage boost. “Union wages are anywhere from 40 to 60 percent higher than the average for the construction industry as a whole, meaning that what Michigan calls a “prevailing wage” is actually a premium wage paid to a shrinking minority of workers.” The Mackinac Center for Public Policy certainly has no objections to workers receiving good wages - many of our policy recommendations are made with an eye toward attracting employers to Michigan, improving working conditions and compensation by increasing job opportunities. But it is a foolish policy for the state to mandate sizeable pay increases for workers who earn well above average wages on their own and expect the state’s taxpayers to pay for it. Michigan’s taxpayers also benefit by having competition among contractors for statefinanced construction; merit shop contractors should be encouraged to put in bids, and the prevailing wage law ought to be administered in such

a way that compliance should be reasonably easy for all firms. But in my conversations with contractors it is clear that the prevailing wage law is enforced in a way that makes it much more a trap for merit shop contractors than it needs to be. Those contractors that choose to pursue state-funded construction contracts know that even if they seriously intend to follow the law, it’s only a matter of time before they will be tripped up. One need only look at a prevailing wage list for any Michigan county to see potential problems. The prevailing wage listings include over a hundred work classifications, each with its own schedule of wages. The classifications can be quite detailed; crane operators fall under as many as five wage rates depending on the length of the boom and job, while laborers pay can vary depending on how far outside of the building they are working. Aside from the sheer multitude of job titles, the descriptions themselves can be quite confusing. For instance, in 2005 the listings for Washtenaw County gave two separate listings and wage schedules for “Cement Masons,” with no differentiation or explanation of which schedule applied when or where. Categories can change between counties, adding further to the confusion if a contractor has projects in different parts of the state. For example, in Bay County “Sound and Communication Installer Technician” had a separate wage listing to distinguish these workers from other electricians. Monroe County did not have a listing for “Sound and Communication Installer Technician,” but did have separate listings for “Teledata Journeyman Installer Technician” and “Teledata Cable Puller,” while Wayne County had only one listing for Electricians (“Electrician, Inside Wireman”). Finally, there are the occasional geographic subdivisions (In Ingham County’s 2005 determinations, electricians in Onondaga, Leslie, Stockbridge and Bunker Hill had a separate wage schedule from electricians in Lansing) that add yet another wrinkle to figuring out the right wage. With all the layers of complexity, even the most diligent contractor, with no intention of shortchanging his workers, is liable to commit an accidental “violation” at some point. None of this is necessary. Construction wages at merit shop contractors, hold up quite well when compared to Michigan’s workforce as a whole; by and large construction workers in Michigan are not in need of a government-mandated wage boost. The hassle that the prevailing wage Continued on page 15

FEATURE Article W ork ing t o St op Union - Only P LA s As an independent contractor, an advocate of the free enterprise system and a taxpayer, you have good reason to oppose union-only project labor agreements (PLAs). Now ABC of Michigan is giving you an effective way to report union-only PLAs awarded by public institutions and local and state governments. The new tool in this effort is PLA Watch Michigan and it is now available on the Web at www.plawatchmichigan.com. PLA Watch Michigan offers ABC members a quick and easy reporting mechanism. Chris Fisher, executive director of ABC of Michigan, urged ABC members to report uniononly PLA agreements in their communities because: • They circumvent the public bidding structure. • They increase the cost of public projects to taxpayers. • They artificially disrupt the free enterprise system. • They are discriminatory in nature. • They are taking your job opportunities away. He called the PLA card played by unions a desperate attempt to shore up their deteriorating numbers. “As union membership declines throughout the construction industry union leaders are looking at ways to recoup their dwindling membership and market share,” he said. “Union-only PLAs have become an increasingly favorite tool of the unions to gain work without competition.” Union leaders meet with their city councils, or state officials urging them to sign an agreement requiring that all successful bidders use union-only labor and all employees join or pay union dues. In return, the union claims it won’t organize picket lines, slow work, or even fund their political opponents. “If the outcomes from these efforts go unchallenged then, merit shop contractors end up isolated and out of work, even though non-union employees cover three-quarters of the construction workforce. Your opportunities to fairly get a shot at getting the work are gone, and we cannot let that happen” Fisher emphasized. Union-only project labor agreements clearly have an exclusive, anti-competitive effect. Restrictions on the competitive bidding process increase the cost of construction by

reducing the number of potential bidders. Market Have union-only project labor agreements principles and economic (PLAs) kept you from being awarded a project? studies demonstrate that maximizing competition As an independent contractor and a taxpayer, you have and using open shop good reason to oppose union-only PLAs. construction can cost less to build than union only Now you can take action to help turn around the trend construction. toward PLAs here in Michigan. The new tool in this effort “Not only do PLA is PLA Watch Michigan and it is now available on the Web agreements inflate costs, at www.plawatchmichigan.com. they shut out most local ABC of Michigan has launched PLA Watch Michigan to construction workers reduce the number of union-only PLAs in Michigan by: from participating on • Educating and informing ABC membership and work — including almost interested non-members about PLAs and their 80 percent of the workers affect on the construction industry. in Michigan alone. These • Encouraging ABC members to act when they labor agreements also become aware of PLAs or potential PLAs. mean that most local • Giving ABC members the tools they need to workers with minority report PLAs and potential PLAs. and woman-owned firms are often discriminated Help ABC of Michigan stop union-only Project Labor against—barred from Agreements on construction projects in your area. Visit competing for these www.plawatchmichigan.com for information on what important local contracts,” you can do to ensure your company is not discriminated Fisher added and said against in bidding projects in Michigan. that all taxpayers should have the opportunity to Together we can make a difference! compete fairly on all tax dollar supported projects. Contracts should be assessed and awarded based on sound, credible criteria such as • Especially discriminates against quality of work, experience, and cost -- minority and women-owned not the company’s union affiliation. This businesses, which are traditionally issue is of such concern that most women not unionized and underrepresented and minority contracting associations are in trade unions. publicly aligning themselves with ABC to What You Can Do fight PLAs around the United States. Be alert and be vigilant. Fisher said ABC members can do something about What Happens When You Do Nothing When union-only PLAs go unchallenged union-only PLAs by first reporting them the result is detrimental to free enterprise to ABC Michigan through the Web site; speaking out to project owners and project and merit based contracting: decision-makers; and contacting your • It excludes the vast majority of the local councilmen, township trustees and Michigan construction workforce who state lawmakers to let them know your choose not to belong to a union. opposition. “Use the advocacy tools that we • It eliminates open shop are offering through PLA Watch Michigan to contractors from bidding on let them know your position on this issue,” construction projects. he stressed. • Drives up the cost of construction First off it is important to recognize what projects by reducing competition and you are up against and the workings of a implementing the inefficient PLA. Here’s what to look for: “union way” of doing business, • Requirements that unions are the sole boosting construction costs for project representatives of workers on the job owners and taxpayers, without a vote by the employees to • Discriminates against non-union accept the union organization. construction workers and • Use the union hiring hall referral businesses and reduces local system to obtain workers. employment opportunities for people • Pay union wages and benefits while in the construction industry. Continued on page 13

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Fall 2007

ABC of Michigan Named Grassroots Member of the Year

ABC of Michigan stood out for this yearâ&#x20AC;&#x2122;s award by being the first pro business association in the entire country to endorse a challenger, Tim Walberg, who defeated the incum ABC of Michiganâ&#x20AC;&#x2122;s efforts to probent, Congressman Joe Schwarz, in mote free enterprise and the merit last yearâ&#x20AC;&#x2122;s primary election. It was shop philosophy is getting attention ABC of Michigan who was one of the nationwide; receiving the Grassroots driving forces behind electing WalMember of the Year award from berg, a free-enterprise, fiscal conserABC National. The recognition is vative. presented each year during its an As in years past, ABC of Michinual legislative conference held in gan hosted a luncheon in which the Washington, D.C. Accepting this entire Michigan Republican Conprestigious recognition on behalf of gressional Delegation was invited. all ABC members in Michigan was In attendance were Representatives ABC of Michiganâ&#x20AC;&#x2122;s Executive DirecCamp, Knollenberg, and Walberg, tor, Chris Fisher. The Grassroots Member of the Year award recog- ABC Region 6 Vice President, Steve Russell and ABC MI along with the chiefs of staff for Repnizes an individual or organization Executive Director, Chris Fisher with Grassroots Member of the resentatives Ehlers, Hoekstra, Knollenberg, Rogers, and Walberg. that has demonstrated exemplary Year Award During the luncheon both Representatives Walberg and efforts to further the merit shop philosophy and issues critical to Knollenberg addressed the group of twenty-five ABC members and ABCâ&#x20AC;&#x2122;s members. â&#x20AC;&#x153;We honor ABC of Michigan for its activism on the their families. Walberg thanked ABC for its early support in the grassroots level,â&#x20AC;? said Dave Meyer, 2007 ABC national chairman. primary of 2006. He went on to note, that if not for ABC helping â&#x20AC;&#x153;This outstanding group of individuals worked diligently throughto oust former Rep. Joe Schwarz early, the outcome of the race out south central Michigan to educate voters and ABC members on would have ended much differently. Walberg continued to note the issues important to the construction industry,â&#x20AC;? that both he and Congressman Knollenberg have been branded â&#x20AC;&#x153;public enemy number oneâ&#x20AC;? and their seats have been targeted by the Democratic Party in the 2008 election. H Continued from page 5

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ethic, pride in craftsmanship, and an honest approach when dealing with people. Blend this formula with todayâ&#x20AC;&#x2122;s technologies and you have a successful company. Triangleâ&#x20AC;&#x2122;s sales figures are impressive too, at $105 million for 2006. The company expects to see these numbers increase by 10 percent this year. Triangle averages 80 projects a year, most of them falling into these five categories: education, medical, industrial, commercial, and residential development. Investing in employee training and keeping up with current regulations is a major component of the companyâ&#x20AC;&#x2122;s corporate culture. The organizationâ&#x20AC;&#x2122;s entire team of project superintendents has a good understanding of environmental regulations. They are certified by the Michigan DEQ (Department of Environmental Quality). Six project managers are LEED certified professionals. Triangleâ&#x20AC;&#x2122;s goal initially was to become a leader in sustainable, green building standards and methods. The companyâ&#x20AC;&#x2122;s goal now, is to sustain their leadership position. According to Datema the companyâ&#x20AC;&#x2122;s achievement is credited to its focus on its customers, employees, and community stewardship. â&#x20AC;&#x153;Most of Triangleâ&#x20AC;&#x2122;s work comes from referrals from existing and past clients â&#x20AC;&#x201C; and business has remained steady throughout the years,â&#x20AC;? Datema emphasized. â&#x20AC;&#x153;Being client centered, our clients are actually the ones who do the marketing for us. Over half of our work is from repeat clients,â&#x20AC;? he concluded. H

BUSINESS DEVELOPMENT Current Employee Handbooks By Toni Talbot, SPHR

Effective human resource policies that are clearly outlined in your employee handbook allow an employer to communicate a host of important information and expectations to staff. It also sets and identifies potential ramifications for failure to comply. But, most importantly it saves time and improves productivity by providing guidelines to supervisors on how to deal with employee issues that can be so confusing, emotional, and may have tremendous ramifications if mishandled. So, when was the last time your company updated its employee handbook? 5 years ago? 10 years ago? 15 years ago? Do you even have an employee handbook? Employee handbooks are the set of policies and work rules (laws) your company abides by. If these policies are not in existence, or accurate, your organization may be operating at a disadvantage or be in danger of employee problems now or in the future. Compliance with Employee Handbooks: The Good, The Bad, And The Ugly A strong employee handbook is a wonderful device, when used correctly. It needs to be used as the guide post and the rule book for managing staff. When this occurs, you will find the handbook an excellent tool defending any type of claim, including an unemployment claim, workers compensation claim, discrimination accusation, etc. This is the good – maintaining a current employee handbook. When, however, a manager is inconsistent and does not require employees to comply

with policies, you have the bad, and the bad can get very ugly. Inconsistency and failure to follow your own policies when dealing with employees leaves you open to indefensible claims and puts you into a position where your handbook may actually be used against you. An employee handbook is merely paper and ink. Its power is in the application of it by supervisors and managers. For example we had an employee with excessive absenteeism. We spoke to her twice and then began writing her up. After two formal write ups, she was terminated. When she filed for unemployment we had the documentation to win our case: 1) the policy on punctuality, 2) the time records that showed her tardiness and 3) the disciplinary action that showed we informed her of both the problem and the potential consequences of her continued tardiness. We won the claim. But this can go the other way too. There are numerous examples where an employer had several employees with excessive tardiness problems, but the employer zeroes in on only one employee to dicipline for tardiness.

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In a situation like this an employee can make a claim that this policy was not being consistently administered and they can “Inconsistency and failure to follow your own policies leaves you open to indefensible claims.” claim discrimination. Having to defend such a case in front of a judge and jury is a problem. “Yes we did discipline her for tardiness.” “No, we did not discipline him for tardiness, even though he had the same amount of tardiness…you see judge, he has been with the company a long time, nothing is going to change him.” Inconsistency will guarantee that you lose the claim. Employee Handbooks are Vital Start by reviewing your present handbook. Does it address your current practices? Does it include provisions for employment laws such as Family Medical Leave, COBRA, or harassment? Is it understandable, so that when an employee reads it, he or she easily understands it? Are there policies included that are being ignored by your managers? Are there policies that no longer apply to your organization? Based upon how you answered these questions, you may need to update your handbook. Reflect on some of the past internal problems you have had with employees. At some point, the majority of the problems stem from some type of miscommunication. “I didn’t know this was a rule,” or “I was never told what you expected,” or “I didn’t understand.” Handbooks are a means of communicating with employees. It communicates the policies and laws of the company. It is important that you take the time to write and implement an employee handbook that will be effective. The time taken upfront is worth the effort when you have created a tool that improves the communication process and frees you and your managers’ time to concentrate on running the business.

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spotlight on members Western Michigan Members

Southeastern MichigaN Members

The Western Michigan Chapter remembers former Congressman Guy Vander Jagt who died June 22, 2007 after a courageous battle with pancreatic cancer. Guy spoke at several local and national ABC events during his Congressional career and was a favorite with members. Jing Zhang joined CSM Group as a project engineer; Nick Birmingham, Nathan Hubert and Kent Farley as project managers; Nathan Wittstock as document manager; Brandon Duprey as a project engineer and Henry Anakwa as an IT field engineer. CSM was recently honored by the American Humanics Student Association, Western Michigan University Chapter, as “Most Philanthropic Business” in the Southwest Michigan area. Owen-Ames-Kimball Co. has hired Architectural Technician Tera Kepler. Allen Vander Laan has been named CEO of Kent Companies, while Roger Vander Laan has been named president. The 50 year old company employs 350 in the Midwest and 75 at its Texas branch. Triangle Associates has hired April Bollenback as project engineer, Susan Priest as project coordinator and Janine Foster has joined Triangle as marketing coordinator.

Congratulations to the following Southeastern Michigan members who graduated with the highest grade point averages over four years: Rita O’Connel, carpentry; Michael Baran, plumbing; Ryan Wargal, electrical; and Matthew Tucker, HVAC. The following Southeastern Michigan graduates were competitors in the National Craft Championship: Daniel Black, Michael Brown, Robert Clark, Chris Edward, Chris Hocking, John Hocking, Gabriel Ivan, Michael Krause, Travis Liptzkey, Andrew Peace, Ryan Wargal and John Wnuk. Samual Pop of Long Mechanical placed 3rd in the nation (winning a Bronze Medal) in plumbing at the National Craft Championship at the 2007 ABC National Convention in Nashville. H

Tony Roussey, director of operations, has joined Elzinga & Volkers. The Rehmann Group has been named an Elite Award Winner for Community Initiative by the Michigan Business & Professional Association. Mary Bauman an attorney with Miller Johnson was appointed to Hope College’s Board of Trustees. Brian Pylman of Pylman Power, Inc. has been promoted to human resources manager and safety director. H

Central Michigan Members

SAginaw Valley MEMBERS

Congratulations to Central Michigan Chapter Executive Director, Chad Sluss and his wife, on the birth of their daughter, Gabrielle Christine, on September 7th. Gabrielle joins her two older brothers in the Sluss home. Eagle Eye Golf Club and Hawk Hollow Golf Course hosted the Michigan PGA Professional Championship, August 27-29, 2007. Both courses are owned and operated by Central Michigan Chapter member D.L. Kesler of D.L. Kesler Construction. Central Michigan member Wally Miars of Miars Electric has joined the ABC of Michigan Business Development Committee. He is representing the Central Michigan Chapter members along with Gary Hengesbach who serves as chairman of that committee. H

FI S HER E LEC T R I C

Saginaw Valley Chapter Gives ABC National It’s Craft Instructor of the Year (Corrected version from Summer, 2007 issue; our apologies to the affected members.) Each year, ABC presents the “Craft Instructor of the Year Award” to an instructor who possesses outstanding teaching credentials and demonstrates Saginaw Valley: a commitment to preserving the high Congratulations to the ABC educational standards of the merit shopSaginaw and Valley Ch x Joseph Schoof, Merrill High S the construction industry. This year’sWatkinson, award Bay City x Geraldo Robertmember, (Zack) Most, Brecken was presented to Saginaw xValley Gerry Kenyon, who was selected from a field of five finalists.Saginaw Valley Chapter Gives ABC N Kenyon has Each year, an instructo been a millwright demonstrat instructor at standards o award was ABC’s Saginaw who was se Valley Chapter Kenyon ha since 1999 and chapter sin Center for has taught all millwright five levels of the Gerry Kenyon accepts Instructor of "Gerry bringsABC more than 24 years of cr National Center the YearKenyon award from National ABC Chariman national chairman. "Gerry’s superior teac Dave Meyer for Construction shop philosophy strengthen the foundation of o Education and effectively training the next generation of const Research (NCCER)"Ourmillwright program. entire organization is extremely proud of President of Bierlein Companies its “Gerry Kenyon brings more than 24 yearscelebrating of training Bierlein employees receive from our A craft excellence to the classroom,” Dave customers are regularlysaid amazed at the skill leve Meyer, 2007 ABC national chairman. “Gerry’s Saginaw Valley Member Wins Gold a superior teaching skills and commitment to year, the ABC National Craft Championsh his students and theEach merit shop philosophy craftspeople and highlights the important role th strengthen the foundation of our workforce. Two students from the Saginaw Valley Chapter It is an honor to recognize his dedication Academy, participated in the 2007to competition effectively training the next generation of Tom Davis, a level 4 student and an employee construction craft professionals.” competition. Greg Asakevich, a level 5 studen competed is in the millwright competition extremely proud where “Our entire organization of Gerry’s accomplishments”, Mike Competitors from thesaid 79 ABC chapters across t competition in order Bierlein, president of Bierlein Companies celebrating its fiftieth year in business. He went on to say “The craft training Bierlein employees receive from our ABC chapter continually proves to be second-to-none. Our customers are regularly amazed at the skill level of our craftsmen.” H

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LEGISLATIVE UPDATE Services Tax and Income Tax Passed to Balance Budget: ABC Michigan Fights to Keep Construction Free From Services Tax As the midnight deadline passed triggering a government shutdown after nearly nine months of negotiations, the state House, state Senate and Governor Granholm were able to avoid a shutdown in State Government services at roughly 4:20 a.m. Monday, October 1st through a combination of tax increases and government reforms. A major piece of this agreement is House Bill 5198, a conference committee report on expanding the Michigan sales tax to include select services. Of paramount concern to ABC was keeping construction services from being subject to the 6% tax. ABC of Michigan was on the scene for all 18 straight days and nights working the issue to oppose an expansion of the services tax to construction. ABC Executive Director Chris Fisher urged all 148 lawmakers and the Governor to oppose the tax and informed them of the problems such a tax would create for construction in Michigan. Fisher also met with Speaker Andy Dillon, Senate Majority Leader Mike Bishop and numerous legislators from both parties and in both the House and Senate. Early last month ABC helped form S.T.O.P. (Stop Taxing Ordinary People) to fight efforts to expand the sales tax to services. Additionally ABC members from around the state responded to the need to oppose a services tax because of the harmful effects a tax on services would have had on construction by sending hundreds of letters to elected officials to fight the services tax. “Although we opposed any tax on services, we are nonetheless pleased that we were successful in keeping construction services off the table,” said Fisher. The negative effects that a services tax would have had on the Michigan construction industry would have been devastating. According to the Michigan Department of Treasury’s own estimates, a new 6 percent services tax would have increased construction costs $372 million per year in Michigan. “Now that the door to a services tax has been opened, ABC will also be on guard to keep construction services from ever passing through that door in the future,” he added. Scheduled to become effective December 1, 2007, the services tax is estimated to bring in $613.8 million in the portion of fiscal year (FY) 2008 it will be collected, and balloons to $751 million for the full FY 2009 – clearly a significant portion of the revenue enhancements contained in the late-night/early morning deal. The measure received zero Republican votes in the House, passing with the minimum 56 “yes” votes as two Democrats voted “no” (Rep. Marc Corriveau of Northville and Rep. Kathy Elbi of Monroe). In the Senate the vote was a 19-19 tie

services to be taxed Scheduled to become effective December 1, 2007, the expansion of the state sales tax to services is estimated to cost taxpayers $613.8 million in the portion of fiscal year (FY) 2008 it will be collected, estimates balloon to $751 million for the full FY 2009. Services being covered under the bill (plus the amount of revenue expected to be raised) as of FY 2008 includes: • Business service centers ($9.5 million) • Carpet/upholstery ($5.2 million) • Couriers and messengers ($3.1 million) • Document prep services ($4.8 million) • Investigation guard/armored car ($27.0 million) • Janitorial ($43.8 million) • Investment advice ($16.8 million) • Landscaping ($40.5 million) • Mini-warehouse and self-storage ($3.9 million) • Transit and ground passenger, limo and cab ($10.5 million) • Office administration ($79.2 million) • Other personal services ($48.2 million) • Other travel and reservation ($6.7 million) • Personal care, not haircuts ($14.1 million) • Scenic transportation ($14.2 million) • Security system services ($14.2 million) • Service contracts ($23.5 million) • Skiing ($2.2 million) • Interior design ($27.8 million) • Tour operators ($2.6 million) • Consulting ($188.2 million) • Packaging and labeling services ($20.8 million) • Warehousing and storage ($21.0 million)

The measure faced equal difficulty getting votes in the State Senate. Lt. Governor John Cherry ultimately cast his vote to again break a 19-19 tie. Four Senate Republicans (Sen. Patty Birkholz - Saugatuck, Sen. Tom George - Kalamazoo, Sen. Ron Jelinek Three Oaks, and Sen. Jerry Van Woerkom Muskegon) joined all but two Senate Democrats to send the measure to the Governor’s desk. The dissenting Democrats were Sen. Glenn Anderson - Westland and Sen. Dennis Olshove -Warren. Prevailing Wage Costs Taxpayers Money, ABC of Michigan Pushes for Repeal Renewing its call to repeal Michigan’s prevailing wage law, ABC of Michigan pointed to a recent Mackinac Center for Public Policy finding clearly showing that the law costs Michigan taxpayers an extra $250 million each year.

Sen. Nancy Cassis speaks to the media in the Capitol rotunda. Cassis is the primary sponsor of prevailing wage reform legislation in the Michigan Senate. Standing with Cassis are Senate Majority Leader Mike Bishop (left) and Governor Granholm (behind).

that was broken with Lt. Governor John Cherry’s “yes” vote. Three Republican Senate members (Sen. Valde Garcia of How- “As lawmakers and the governor try to ell, Sen. Wayne Kuipers of Holland, and balance the state budget, they should take Sen. Ron Jelinek of Three Oaks) joined the a serious look at repealing Michigan’s preDemocrats on final passage of this measure. vailing wage law,” said Chris Fisher, ABC MI In addition to a tax on services, an income executive director. “This law is tantamount tax increase was narrowly passed as well. Af- to government-sanctioned wage fixing. It is ter weeks of working to pass House Bill (HB) Continued on page 13 5194 to increase the Michigan Individual Income Tax, the House, Senate and administration agreed to a rate and a roll-back structure. Two House Republicans (Rep. Ed Gaffney - Grosse Pointe and Rep. Chris Ward - Brighton) joined 55 Democrats in passing a measure increasing the rate from 3.9 to 4.35 percent. The rate will roll back to 3.95 percent on October 1, 2011 and to 3.9 percent on October 1, 2015. www.abcmi.com Fall 2007 i 11

AROUND THE STATE - Chapter news Central Michigan Fall Programs Highlight Central Michigan Chapter Events The Central Michigan Chapter announced a full seminar and meeting schedule this fall for its members. Programs include: • Annual Meeting & Awards Dinner on October 11, 2007 at Eagle Eye Banquet Center at 5:30 p.m. • Productivity=Profitability Class with Michael Brunner ABC Central Michigan Chapter Office, October 24th 8:00 a.m. – 4:30 p.m. Cost: $175.00 members / $375.00 non-members. 10 Scholarships are available upon request. For more information on these programs visit their Web site at www.abccmc.org. H

Saginaw Valley Saginaw Valley Construction Academy Offers Leadership Seminar The first of several planned workshops dedicated to job skills enhancement for front-line managers, field supervisors, foreman, project superintendents and project managers was offered by ABC/SVC this past winter. The course offering titled: “Front-Line Leadership I” was composed of five modules, each three hours in duration. Twenty six managers and project leaders from ABC/SVC member companies including: Bierlein Environmental Services, G.E. Insulation, Graham Construction Inc., Gulf States Inc., J.E. Johnson Inc., Three Rivers Corp. and Valley Electrical Contractors participated. One participant said, “I thought this course overall was really good. I find myself daily, referring to things that I learned in this course.” H

Southeastern Michigan New Training Facility for the Southeastern Michigan Chapter

New ABC Southeastern Michigan Headquarters and Construction Education Trust facility

Associated Builders and Contractors, Southeastern Michigan Chapter and the Construction Education Trust has announced its dream and the dreams of its dedicated members has become a reality,

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with the chapter’s purchase of a new building to house its apprentice training programs. The facility will offer space for classroom instruction and hands-on learning experiences, as well as housing the association’s offices. The new building is located in Madison Heights, on Sherman Drive, just a short four miles from their current location. Members will be invited to participate in the bidding process for the “build out” of the new ABCSEMI / CET apprenticeship training facility. When completed, the facility will be developed into 4,000 square feet of office area and 21,000 square feet of classroom and hands-on training areas. It’s been an exciting time for ABC in Southeastern Michigan. On June 4th, documents were signed as evidence that ABC in Southeastern Michigan is committed to growing and developing an innovative construction workforce for tomorrow. H

Western Michigan Larry Buist Addresses Recent Apprenticeship Grads Larry Buist, president of Buist Electric, a Western Michigan Chapter member, was the keynote speaker at the apprenticeship graduation ceremonies held on May 9th at GRCC’s Tassell M-TEC. Buist spoke of his career in the electrical con st r uct ion industry and how he went from learning the trade to running the area’s largest electrical contracting company. He identified the personal traits necessary for success and highlighted t h o s e characteristics that have e n a b l e d Buist Electric to attract

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and retain highly skilled field and office personnel. Buist encouraged graduates to continue their education and follow their dreams! Green Build Training Offered This fall, The Western Michigan Chapter, in partnership with Catalyst Partners, is offering an intensive, six session course to prepare individuals to take the LEED Accredited Professional examination. More and more, general contractor/CMs and subcontractors are seeing the advantages of Green Building and are desiring their project managers, foremen, project superintendents and others to be trained to understand the LEED goals, processes and objectives. The training will assist in the student’s exam preparation in an organized classroom setting with qualified instructors. Classes will run September through early November. For complete details contact the ABC/WMC Office at (616) 942-9960 or 1-800-222-2845. H

Yo u c a n b e a he ro! ABC of Michigan has been redesigned to bring about more unity, more professionalism, and more member involvement. The goal and desire of the board of directors is to make ABC of Michigan transparent and open — to encourage more member participation. To accomplish this goal the board has introduced a new committee structure to help guide and define ABC of Michigan. Service on these committees involves a minimal time commitment and your participation makes a huge difference. In fact when you volunteer you become a hero. A hero is defined as someone who does something that benefits, helps or advances someone else. So here’s your chance. ABC’s volunteers are heroes – not just to us but for the entire Merit Shop construction industry in Michigan. ABC of Michigan needs your expertise and experience on our new committees. Each committee is responsible for one of the core areas of the new ABC: The Business Development Committee is responsible for helping you grow and expand your business. It will provide you with valuable marketing and networking opportunities while positively promoting ABC of Michigan and our members to the general public. It is doing this at the state level using the following tools: public relations campaigns, the new Michigan Merit magazine, the statewide membership directory, education on union only Project Labor Agreements and more. The Member Services Committee works to develop programs and services of value to you and to make your ABC of Michigan membership more useful to you. Its responsibilities include: affinity programs, the ABC of Michigan web site, ABC of Michigan membership events and ABC of Michigan member recognition and awards. The Government Affairs Committee carefully watches what is going on in and around the capitol building in Lansing and works to advance and defend the legislative and political priorities of ABC of Michigan through: lobbying, PAC fundraising, legislative advocacy, grassroots involvement and Legislative Days (State and National). Make your ABC of Michigan membership the most valuable tool in your toolbox. Make it work for you the most effectively by getting involved and making ABC of Michigan what you need it to be. To volunteer for any of these committees email boardway@abcmi.com. Merit shop construction in Michigan needs you.H

Continued from page 7

workers pay dues and fees to the union. • Obtain apprentices exclusively from union apprenticeship programs. • Obey restrictive and antiquated union work rules, job classifications and arbitration procedures. Fisher outlined ways that ABC members can respond and make a difference. “After reporting to PLA Watch Michigan, contact the project owners because many times they are intimidated by big union bosses who don’t even live in the area or pay the taxes to build the project. Since you live there, let the owner or owners know who you are and that you are a taxpayer who cares. The more light shed on this topic the more the public knows about these schemes and the better the chance of preventing them.H Continued from page 11

anything but ‘prevailing,’ and it comes at the expense of Michigan jobs and taxpayer dollars. We need to promote competitive wages that are neither artificially low nor high.” The study reached the same conclusions as previous studies on prevailing wage laws in Michigan and other states. Under the law, pay on all state-supported construction projects is determined by union scale wages even though union workers represent only 22 percent of Michigan’s construction work force. Eighteen states do not have state prevailing wage laws, which inflate construction costs, limit state budgets and siphon valuable funds that otherwise could be spent on other vital projects. These include growing states like Arizona, Florida, Georgia, North Carolina, South Carolina and Virginia. Legislation to repeal prevailing wages on school construction has been introduced in the Michigan House by Reps. Dave Hildebrandt (R-Lowell) and Arlan Meekhof (R-West Olive). In the state Senate, a bill to suspend prevailing wages whenever state unemployment is higher than the national average has been introduced by Sen. Nancy Cassis (R-Novi). ABC has lobbied key lawmakers, met with other business groups and will continue to make this a priority issue on behalf of our members and industry.H

3400 Centennial Drive Midland, MI

Phone (989) 496-2076 Fax (989) 496-3960

www.abcmi.com

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Determine your company needs There are policies that all companies must have such as equal employment opportunity or hazard communication. There are also policies that vary based upon the unique needs of your company. Does your company require a uniform? Should your handbook include DOT Driver Requirements? Do you need a policy on technology and communications such as email, radio use, and cell phones? When making the decision to establish a policy, do not create a new policy to react to a specific situation. Policies are laws -- laws that you and your company will have to live with for a long time. Do not write policies that will punish all of your staff because of the behavior of a few or because of a one time incident that occurred that you want to “nip in the bud.” Many times I’ve had to face a manager who was stuck with a “reactionary” policy that he or she did not want to apply to an employee, but had little choice in the matter. Make sure the policies you chose match your company’s mission and management philosophy. For example, if your mission encourages strong customer service and relationship building with customers, make sure your policies are written to reward and encourages employees for their professional behavior with customers. Different types of polices are used for different purposes. Following are examples of policies to be considered for your hand book and how they could be categorized: General Information or Communication • Company mission, vision, management philosophy • Company history • Expectations of employees • Description of products or services company provides • Company organizational structure • Equal Employment Opportunity Statement • At-will statement Company Work Rules and Policies • Attendance • Dress code • Safety • Smoking • Harassment • Discipline Guidelines • Hiring Practices • Promotion Process • Performance Appraisal System Benefits • Health and other insurances offered • Time-off with pay • Education reimbursement • Other company sponsored benefits H Toni Talbot, SPHR is president of Human Resources Management Services, LLC. For more information visit www.HRMServices. biz or call Toni at (517) 655-3959.

Advertiser’s index aIS Equipment

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answer heating & COOLING page 6 brandle roofing page 13 C.T. Electrical page 2 capital steel page 13 Cintas Corporation page 8 Fisher Electric

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human resource Mgt. Services page 2 J.E. Johnson, Inc. page 8 Meadowbrook

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Molnar Roofing page 8 P&K Steel Service page 15 parish corporation page 11 rci electric page 12 Regency group BACK COVER Ryan lykins im, plc page 2 skilled trades page 14 steel supply & engineering page 10 three rivers corporation page 13

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law creates for merit shop contractors only makes government-funded construction in Michigan more expensive, adding to the cost of government and draining money away from other job-creating businesses in the process. The time is ripe for merit shop contractors to make their voices heard because they have the direct experience of both the difficulties created by the state’s prevailing wage law and of the pointlessness of the entire effort. For years the prevailing wage law has gone largely unchallenged, but as Michigan’s economic difficulties continue lawmakers and taxpayers are likely to show more and more interest in ways to make government less expensive. Repeal or reform of the prevailing wage would be an ideal place to start. H Paul Kersey, J.D., is director of labor policy at the Mackinac Center for Public Policy in Midland For additional information contact Paul at kersey@mackinac.org.

www.abcmi.com

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ASSOCIATED BUILDERS & CONTRACTORS OF MICHIGAN 120 WASHINGTON SQUARE, SUITE 805 LANSING, MICHIGAN 48933

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PRESORTED STANDARD U.S. POSTAGE PAID LANSING, MI PERMIT NO. 689