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News News Blog

Workers Call XPO’s Closing of Memphis Warehouse Retaliation

XPO

XPO Logistics is closing its Verizon warehouse here and some employees are calling it retaliation.

The employees were informed Wednesday via letters that they would be terminated as a result of the facility closing in June.

This is the same warehouse that’s recently gained national attention after allegations of pregnancy discrimination, sexual abuse, and poor working conditions were brought forth by employees.

About 400 employees currently work at the facility XPO plans to close.

In a letter to the warehouse’s employees, XPO said that it will be permanently closing the facility here because of “an overall business model change initiated and completed by our customer.”

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“Consistent with this change, we anticipate there will be a need to have employment separations at the facility, commencing on April 15, 2019,” the letter reads. “We believe that these plans, when finalized, will be permanent and the entire facility will be closed.”

Employees will be terminated during a 14-day period beginning April 15th. The letter also details that the terminated employees will not be able to “bump or displace” other employees working for the company.

The termination letter was handed to employees on the same day that XPO announced new free benefits for new and expecting parents.

Workers, including Lakeisha Nelson, believe the move is retaliation for exposing sexual harassment and pregnancy discrimination at the facility.

“My co-workers and I stood up and exposed the terrible conditions at the XPO-Verizon facility in Memphis, including sexual harassment, dangerous heat, pregnancy discrimination and worker abuses,” Nelson said. “In return, XPO and Verizon are shutting down our facility and cutting our jobs. I will not be intimidated by these corporate bullies.”

A former employee at the Verizon warehouse, Tasha Murrell, had a miscarriage on the job and now she questions XPO’s previously stated intentions to change its policies.

“XPO wants to talk about how much it cares about pregnant workers, and then it lays off all the workers from the facility that brought these pregnancy problems to light,” Murrell said. “This should tell you how serious XPO is about changing its ways.”

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President of the International Brotherhood of Teamsters General, James Hoffa agreed, calling the closing “disgraceful.”

We have stood by these workers since the beginning in their fight to improve their working conditions at this XPO Verizon warehouse,” Hofa said. “I have spoken to these women and seen the pain and suffering XPO has put them through.

“For XPO and Verizon to now close this facility is disgraceful. We will continue to help these workers in their fight to keep their jobs.”

However, a statement from XPO said the facility’s closure is a result of a “business decision” made by Verizon.

“Our presence in the Memphis community remains string, and we have jobs available for the majority of these employees in our 11 other local facilities,” the statement reads.


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News News Blog

Memphis to Train and Hire More Police Officers. Will It Affect Crime Rate?

In an effort to reduce violent crime in the city, the Memphis Police Department (MPD) is actively looking to hire more officers, with a goal of 2,300 commissioned officers by the end of 2020.

In his State of the City Address last month, Memphis Mayor Jim Strickland said MPD is on track to have 2,100 officers by the end of this year, after dropping to 1,900 in mid 2017.

The recent rise in the number of officers was aided by improved recruitment efforts and better pay for current officers, Strickland said.

“Our officers have received raises of as much as 7.75 percent since we took office, after almost seven years without any raise at all,” Strickland said in his address. “And as we assemble this year’s budget, pay for our public safety employees is at the top of our priority list.”

Anthony Rudolph, training commander at Memphis Police Training Academy attributes the increase in officers to the department’s enhanced recruiting efforts through attending job fairs and community events, both locally and in major cities as far away as Seattle.

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The academy has also added more training and testing dates to accommodate more interested applicants, Rudolph said.

In order to maintain the quality of the department as the quantity grows, Rudolph said MPD has “beefed up” the staff in the background unit, which is now at “full capacity.” The unit’s sole job is to screen applications, looking into the background of applicants to make sure they are suitable for the job.

When recruits leave the academy, Rudolph said they are “highly trained in what they do.”

In 2018, three police recruit classes were held, while five classes with 75 recruits in each are slated for this year, Rudolph said.

Why 2,300?

The mayor said employing more officers is an effort to continue to lower the violent crime rate here. The violent crime rate was down 4.2 percent in Memphis and 3.6 percent in all of Shelby County last year, according to an analysis released in January by the Memphis and Shelby County Crime Commission (MSCC).

Ursula Madden, the city’s chief communications officer said at the height of MPD’s staffing in 2011, there were roughly 2,400 commissioned officers. During that time, the violent crime rate was at its lowest since the MSCC started measuring the rate in 2006.

“Mayor Strickland has made it a priority to rebuild the police department,” Madden said. “To that end, our human resources team used our headcount from 2013 to set a goal to recruit and retain 2,300 officers by the end of 2020, while our consultants conduct a workforce analysis.”

Madden adds that the number could change based on the analysis of the consultant, which the city hasn’t received yet.

Will it Work?

Josh Spickler, executive director of Just City, a group that works to minimize the impact of the criminal justice system on people here, said “there is absolutely nothing wrong” with MPD wanting to hire more officers. But, not when done with the intention of reducing crime rates.

Josh Spickler

When the city says crime is up, so more officers need to be hired, Spickler said the city is “very overtly” saying that more police officers will impact the violent crime rate. But Spickler argues there is “no magic number” of officers at which violent crime decreases.

“Is there empirical evidence to suggest that hiring more officers will actually achieve that purpose?” Spickler said. “There’s no empirical evidence that I’m aware of that shows the number of officers has an effect on crime rates. If it’s there, show us. But it’s not there.”

Spickler said it’s “disingenuous” for the city to use violent crime as the reasoning for hiring more officers, saying he would rather hear the department say they have a personnel or staffing problem.

“That’s a totally different conversation and a very worthwhile one to have,” he said. “It leads to conversations about community policing and best ways to use our resources — the men and women in uniform. That’s the conversation I wish we would have.”

Spickler adds that in his opinion, parts of the community here are over-policed, saying that Memphis already has a high number of officers per capita.

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“I don’t think more officers on the streets is necessarily a good thing for the community,” Spickler said. “A big, big percentage of this community already experiences too much interaction with the police department.”

A Different Approach

Spickler said violent crime is typically the result of a lack of opportunities and hope for individuals, and that the community has to work to create that.

“I think that means engagement with those most susceptible to violent crime,” Spickler said. “How can we engage them in a way that gives them hope and opportunity. And you see some of that stuff from many different parts of city government.”

Spickler cites expanded community center and library hours, summer job programs, youth recreation, and gang intervention programs as some of the most valuable anti-crime measures the city has taken.

The country has passed the threshold in which more police presence, enhanced punishments, tougher prosecution could have an impact on crime, Spickler said.

“Yet, the community is very, very bad about that still,” Spickler said. “Those are the things that don’t work. We’re way past that, and yet that’s what we fall back on.”

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News News Blog

XPO Adds More Benefits For New, Expecting Parents

XPO


XPO Logistics announced new, free benefits for new and expecting parents Wednesday in the wake of national attention to allegations from workers that the company practiced pregnancy discrimination.

The global company runs a Verizon warehouse in Memphis. The company has been under fire after employees reported pregnancy policies that some said led to miscarriages.


Employees have also said XPO allows them to work in unsafe working conditions, such as extreme heat.


Now, the company is implementing a free, comprehensive supplemental care for new parents and expectant mothers, “expanding XPO’s commitment to providing high-quality care for women and working families.”

Through a partnership with Maven Clinic, a mobile app and virtual network of healthcare professionals, workers enrolled in XPO’s medical plan will be able to gain additional support services that complement their regular medical care.

“XPO is setting the standard in its industry by offering this comprehensive supplemental health care coverage for employees,” a Wednesday release from the company reads.

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Through video chats, messaging, and phone calls, the app allows employees and their families to access a network of more than 1,400 practitioners with specialities including fertility, lactation, infant sleep, nutrition, and mental health.

“This virtual clinic gives our employees 24/7, on-demand access to an array of the services that women and their families seek most during and after pregnancy,” Josephine Berisha, XPO’s senior vice president of compensation and benefits, said. “These services complement our existing suite of US medical plans and are free to all employees. Expert digital healthcare is an important additional convenience for new parents, especially working mothers who are balancing the demands of home and work.”

The introduction of these new benefits comes after XPO announced in December it would take “proactive steps to enhance our policies” with more accommodations for expecting mothers.

New policies were launched earlier this year to provide increased support for pregnant employees, paid family leave, and 30 new types of wellness benefits for women and families. XPO said at the time its new pregnancy care policy is “among the most progressive in the industry,” and exceeds requirements set by federal, state, and local laws.

XPO also announced in December that Tina Tchen of Buckley Sandler’s, a Chicago-based firm that specializes in unique litigation, counseling, and crisis management skills, would be leading an independent investigation into the allegations made by workers.

Tchen, an expert in gender equity and workplace cultural compliance, will investigate the workplace conditions of the warehouse and make recommendations for improvement. An XPO official said Wednesday they could not provide an update on that investigation at this time.

XPO’s enhanced policy and investigation came shortly after 97 House members sent a letter to the House Committee on Education and the Workforce urging an investigation of the many allegations of “disturbing treatment” at XPO’s warehouses around the country.

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Music Music Blog

This Year’s Beale Street Music Festival Lineup Announced

RoLexx

Khalid

The lineup of the 2019 Beale Street Music Festival, scheduled for May 3rd-5th at Tom Lee Park, has been announced, featuring headliners from the worlds of rock, alternative, R&B, hip hop, indie, pop, and blues.That includes some old favorites like the Dave Matthews Band, The Killers, G-Eazy, Charlie Wilson, Shinedown, and Gary Clark Jr. But some relatively new names also top the bill, including Khalid (nominated for five Grammys, but shut out of a win) and OneRepublic. And if you know Cardi B mostly from viral videos, now’s your chance to see her prove her mettle as a performer, as she did at Sunday night’s Grammy performance (where she was the first female to receive Best Rap Album).

“The Beale Street Music Festival saw more than 102,000 in Tom Lee Park last year…We wanted to offer an even bigger lineup in 2019 as our city celebrates its bicentennial,” said Memphis in May President and CEO James L. Holt.

Other artists featured this year include India.Arie, Rainbow Kitten Surprise, Lord Huron, Flogging Molly, 6lack, Trippie Redd, Chvrches, Lil Dicky, Good Charlotte, Big Boi, Dirty Heads, In This Moment, Simple Plan, Rodrigo y Gabriella, Moon Taxi, Lukas Nelson and Promise of the Real, Coin and more. St. Paul and the Broken Bones, with local City Champ Al Gamble on keys, will be a highlight for many.

Travis Whiteside

Moneybagg Yo

As always, one standout feature of the festival is its commitment to local talent, with a full forty percent of the performers coming from Memphis and the surrounding area. Rappers MoneyBagg Yo, Blocboy JB and NLE Choppa will make an appearance, as will Healy, Saving Abel, and Muck Sticky. Local talent will range from rising star Liz Brasher to veteran songwriter John Kilzer and the Scars

Liz Brasher

Yet some fans may just want to stay planted in the Coca-Cola Blues Tent. Any appearance from Stax legend William Bell is a must-see, but the unique takes on local roots brought by acts as diverse as Southern Avenue, Super Chikan, and Barbara Blue are also a delight. Ghost Town Blues Band, Will Tucker, Christone “Kingfish” Ingram, Terry “Harmonica” BeanBrandon Santini, Gracie Curran and the High Falutin’ Band, Fuzzy Jeffries, Deak Harp & Quicksand, Sam Joyner, and Linear Smith will further round out the blues tent, and the greatest may be the soul-jarring delta vibes of Blind Mississippi Morris

Blind Mississippi Morris

Tickets can be purchased through eventbrite.com and are sold now through April 19 as three-day passes for just $135, or single-day tickets for $55. A limited number of VIP passes are also available at eventbrite.com for $649, providing access to exclusive viewing platforms, private “comfort station” restrooms, and light snacks and drinks (including limited alcoholic beverages) for all three days.

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Food & Drink Hungry Memphis

Best Bets: Creamed spinach at 117 Prime

Michael Donahue

Creamed spinach at 117 Prime

Popeye had a lot to do with me liking greens.

As a child, I went through a period where I hated turnip greens, sweet potatoes, bananas, liver, buttermilk, beets, and Mexican food. Greens was at the head of the list — until my mother bought a can of spinach.

My brother and I got her to buy a can of spinach because we wanted to be like Popeye. It might have been “Popeye” brand. She had to open the can about three fourths of the way so it would look like the cans in the cartoons. Popeye squeezed the cans open and plopped the spinach into his mouth. Part of the lid always was attached to the can. My mother had to put heavy tape around the edge of the lid so we wouldn’t cut ourselves while trying to look like Popeye. This sort of lessened the effect we we were trying to achieve.

The outcome of all this was we discovered we loved spinach. It didn’t taste like canned turnip greens, which, I later discovered, my mother didn’t like, either. She served them because they’re good for you.

Well, if chef Ryan Trimm was cooking when I was a child, I might have bypassed Popeye and the empty spinach cans. I tasted Trimm’s creamed spinach during a recent trip to his 117 Prime restaurant. It’s one of the most delectable side dishes I’ve eaten. And, I’ll even say, it’s the best creamed spinach I’ve ever eaten.

I asked Trimm to tell me about it.

“I knew what was in creamed spinach and I made it,” he says. “I played with it. I knew the basic idea of what creamed spinach was and we played with it ‘till I got it.”

He wanted it to be “traditional creamed spinach – a combination of two different cheeses, shallots, garlic, spinach, cream, and salt and pepper.”

And, he says, “It’s always a white cheese.”

The taste is spectacular. “Ours is rich. We put more cheese in it than most people do. It costs a lot to make. It’s not cheaply made by any means.”

I ordered the creamed spinach with my steak at 117 Prime, but, I have to say, I could make a meal out of the spinach. “It’s about 12 ounces of creamed spinach,” Trimm says.

Creamed spinach is something Trimm just likes to eat. “It’s something I remember from steak houses. I love spinach, sauteed, Italian spinach. And creamed spinach is something I’ve always enjoyed. When I go to a steakhouse, I almost always order sauteed mushrooms and creamed spinach. They’re two favorites.”

Two of his favorite places to get creamed spinach are Peter Luger Steakhouse in New York and The Palm in New York City.

Now you can stay in Memphis and get a great one.

Note: I’ve added a video of chefs Trimm and head chef Alex Switzer making creamed spinach at 117 Prime. It’s going to make you hungry.

117 Prime is at 117 Union Avenue; 901-433-9851

Best Bets: Creamed spinach at 117 Prime

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News News Blog

‘The Clipper’ Planned Downtown on FedEx Move

Somera Road Inc.

The Clipper

Developers plan to build an eight-story office and hotel building called The Clipper adjacent to the Gibson Guitar factory building, the newly announced headquarters for FedEx Logistics.

The plan would build the 250,00-square-foot, modern office tower on a surface parking lot at just south of the Gibson plant across Doctor Martin Luther King.

Google Maps

The planned location of The Clipper.

Here’s how The Clipper website describes the building:

“The Clipper will contain 50,000 square feet of ground floor retail space for high-end restaurants, a grocer, and boutiques. The remaining 200,000 square feet will be modern, Class A office space composed of 29,500 square-foot open-floor plates and space to house 1,500 employees. Also available to tenants is a new multi-level parking garage that allows for plenty of parking for future tenants.”

The project also includes “a state-of-the-art approximate-250-key full-service hotel, flush with best-in-class food and beverage amenities, a rooftop deck, and conferencing center. The hotel will be built in partnership with Senate Hospitality, owners of the highly successful Westin Beale Street.”

The plan comes from New York-based real estate investment firm Somera Road Inc. and local partner Orgel Family LP. The FedEx Logistics move to the Gibson factory announced earlier today was a major factor for the companies’s decision to build.

“The FedEx tenancy at the former Gibson site, our market research of the supply and demand dynamic Downtown, and the continued support and commitment from our investment committee have affirmed that we truly can reimagine a block of Downtown Memphis by strategically activating and bridging this valuable corridor between Beale Street and South Main,” said Ian Ross, managing director of Somera Road Inc. “The project will be a dynamic mixed-use, transformational connector.”

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Intermission Impossible Theater

The Memphis Theater Community Says Goodbye to John Rone

John Rone. Promotional image from GCT.

John Rone sent me messages sometimes. Maybe just a “happy birthday,” greeting. Or maybe he’d tell me about a play he’d seen at some festival. Now and then he’d sign these notes, “Love, Dad,” or some variation on the theme. Now that he’s gone, I’d like to set the record straight: This man was not my father!  Sure, fathers are awesome and all, but in the strictest sense, everybody’s got one. Next to mothers and mystery novels they’re the most common things in the world. And, while John Rone certainly loved a good mystery, there wasn’t much else common about him, or the friendships he forged across the span of a life well- lived.

No doubt John will be remembered for his elegance, erudition, and wit. I especially appreciated the way he met and worked with people on their own terms. This was true whether he was working the day job at Rhodes College or putting on his director’s cap to coax his ensemble through a difficult scene. Or maybe he was just responding to a smart-assed alum who’d promised/threatened to liven up an artist’s wine and cheese reception with whoopee cushions. 

Too much? Maybe a little. But I’m so damn tired of writing obituaries — stuck in the anger stage of grieving, if you will — and something tells me Mr. John Howard Rone would rather we laugh or snort or blush and avert our eyes or feel anything at all other than sadness or madness that he’s left us so soon. Like I said up top, there’s no one else I can think of quite like this eager, loyal, loving, dapper and slightly devilish man of Memphis. My heart could drop an epic. The fingers may only manage to type a few, insufficient paragraphs.

The longer I sit, looking back over 34 years of acquaintance, trying to boil a rich, multi-faceted life down to pure essence, the more my mind is drawn to a moment in 2017 when John and I met in the Paul Barrett Jr. Library on the Rhodes campus for a wide-ranging talk about the history of Germantown Community Theatre wherein he compared the rapid succession of executive directors to ancient Rome. “There are all these Caesars that come in, and some of them don’t stay very long,” he said rattling off a list of names that went on and on like the closing scene in Shakespeare’s Cymbeline. That’s when he told me he was delighted to be able to identify himself as “a full-time theater director” now that he’d retired from his Rhodes position as director of the Meeman Center for Continuing Education. He was working for GCT at the time, staging Arsenic and Old Lace and looking forward to bigger and more demanding projects. I’m stuck on this image and the false promise of a best that wasn’t yet to come.

As an actor John could flit from classic to contemporary at the bat of an eye. Larry Shue’s perpetually relevant comedy The Foreigner was a signature show, but John moved fluidly from Shakespeare’s tragedies to Tom Stoppard’s oddities, and seemed most at home in the role of director. Tennessee Williams and I Am a Camera author John Van Druten were favored playwrights, but behind the scenes he showed a special flair for teasing out dense plots and finding the life in stories more literary than dramatic.

The Memphis Theater Community Says Goodbye to John Rone

I know I just referenced Cymbeline like it was a well known show that everybody’s familiar with, but I’m going to guess most readers haven’t seen or even studied Shakespeare’s Disney-ready tale of Imogen, a royal badass who sticks it to the patriarchy and marries for love. It isn’t done very often, in part, because the infamous last scene stretches out toward infinity in an unlikely cascade of confession and coincidence that ties every loose thread into a comic, practically post-modern tapestry of too much resolution. In an early 1990’s production for the McCoy Theatre at Rhodes, John treated that scene like the shaggy dog gag it is. His cast, a healthy mix of student and community actors, made the dreaded denouement sing. It’s still one of the best stuck endings I’ve had the pleasure to witness, and an exemplary sample of John doing what he did best.

The Memphis Theater Community Says Goodbye to John Rone (2)

A few more paragraphs might be generated listing honors and achievements. Instead I’ll link to other sources and only note that John and his equally remarkable and universally beloved partner Bill Short are both Eugart Yerian Lifetime Achievement Award honorees, marking decades of fierce, fully committed devotion to Memphis’s theater community. That represents a lot of collective service. 

To bring all of this full circle, John did play my father once, in a lewd and lovely romp through Oliver Goldsmith’s naughty 18th-Century comedy, She Stoops to Conquer. In that role he took wicked delight in spanking my Marlowe’s badly-behaved bottom with whatever object he happened to be holding in his hand. Sometimes he used a cane, but it might be a riding crop, hair brush, or what have you. He was quite skillful with the “what have you,” I seem to recall, and from that time forward, the sinister (but loving) threat of a surprise cuff, cudgel or swat lurked whenever “dad” was near. I don’t think I’m going to miss that, honestly. But I’ll miss damn near everything else.

A private service for family has been scheduled at Grace-St. Luke’s Episcopal Church,Thursday, February 14th. Although the date hasn’t been set, a more public celebration of Johns’ life will be held at Theatre Memphis sometime in the near future.

Donations in John’s memory can made to Rhodes College, St. Jude Children’s Research Hospital, or — of course — a favorite theater company.

John Rone, Claire Orman in ‘Lunch Hour.’

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News News Blog

FedEx Wants $2M Grant for Downtown Move

Google Maps

The now-vacant Gibson factory will be the new home for FedEx Logistics.

UPDATE: FedEx Logistics wants a $2 million grant from taxpayers to move its headquarters Downtown.  

Moments after the official email about the FedEx Logistics project went out, another email from the Memphis and Shelby County Economic Development Growth Engine (EDGE) went out calling for a special meeting on Wednesday.

The agenda for that meeting includes the grant request from FedEx Logistics for the $2 million in free money. That money would be used to “tenant improvements to the building which are permanent in nature.”

The application also reveals that the project will create 339 new jobs, not the 689 new jobs given in the state’s news release. The new headquarters would bring 332 existing jobs to the site for a total of 662, acceding to FedEx’s application to EDGE for the free money.

The multinational corporation made a profit of more than $1 billion in fiscal 2018. It said it needed taxpayer money to fix the building because of the “high costs for retrofitting the space for office use.”

ORIGINAL POST:
FedEx Logistics will move its headquarters Downtown to the Gibson Guitar Factory building in a move expected to cost $44 million and create 689 jobs.

Gibson announced in December that the company would move production from the Memphis location to its Nashville factory. The company said it would be out of the building by April.

FedEx announced the move Tuesday morning in an event that included a host of elected officials, including Tennessee Governor Bill Lee.

“With FedEx Logistics creating more than 680 jobs, and investing more than $44 million in Shelby County, they are once again showing that Tennessee is a great place to do business,” Lee said. “FedEx and its subsidiaries have been a true Tennessee success story, and we as a state are proud to see this company continue to grow and call Tennessee home.”

FedEx Logistics is now based in East Memphis. The FedEx subsidiary’s president and CEO is Richard W. Smith, who is also chairman of the Greater Memphis Chamber. The company has about 22,000 employees worldwide.

FedEx Logistics “provides worldwide freight forwarding services” that “integrates international freight forwarding, customs brokerage, trade and customs advisory services, and other cross-border service to create comprehensive solutions to international trade.”

“This campus will provide a collaborative environment for our team members and a true home for this growing FedEx company as we continue to attract top talent for the future,” Smith said. “I can’t imagine a better place to work and be a part of than the vibrant, thriving Downtown Memphis business community.”

Smith said “this is a moment of dynamic growth and transformation for Memphis and FedEx. Memphis Mayor Jim Strickland said the importance of FedEx to Memphis “cannot be overstated.”

“With this move, we’re bringing life back to the Gibson Guitar Factory with one of the strongest brands in the world and continuing to bring more jobs and people to our Downtown,” he said.
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News News Blog

MLGW Explains Need for Rate Increases, Infrastructure Improvements

As Memphis Light, Gas, and Water (MLGW) prepares to return to the Memphis City Council next week to again make its case for rate increases, the utility is beefing up its public engagement efforts.

MLGW’s president and CEO J.T. Young is scheduled to host a Facebook Live chat Tuesday (today) at 1 p.m. to answer questions and address concerns the public might have about rate increases or system upgrades.

Questions for Young can be submitted via Twitter, Facebook, and Nextdoor.

The utility is also holding a series of town hall meetings this week to inform customers about the rate changes, infrastructure, and the “truth about MLGW outages.”

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“Because of the nature of media reports, you may only get a 30-second sound bite about MLGW news,” reads a flyer about the meetings. “Quite frankly, that’s not enough time to talk about some complex issues surrounding how we deliver power to your home or why the infrastructure, most of which was installed in the 1950s, is in need of an overhaul.”

The first of four meetings was held Monday at the Bert Ferguson Community Center. There, customers were told that the increases for water, gas, and electric rates total 6.8 percent over five years, or about an additional $11.54 per month for customers. The additional funds would get MLGW infrastructure “where it needs to be,” Young said.

Attendees were also told that MLGW has aging infrastructure and “downward-trending electric reliability.” Therefore, the utility is looking to implement a five-year reliability improvement plan funded by rate increases. The plan includes increased tree trimming, as untrimmed trees are the primary cause of power outages. It would also make improvements to the utility’s distribution automation and water-pumping station, as well as replace substation equipment, poles, and cables.

Under the plan, the utility could also implement gas regulatory initiatives, build a new north community office, and construct new wells.

The remaining meetings are slated for:

• Tuesday, February 12th, 6 p.m. at the Glenview Community Center


• Wednesday February 13th, 6 p.m. at the Ed Rice Community Center


• Friday February 15th, 5 p.m. at the Whitehaven Community Center

MLGW Explains Need for Rate Increases, Infrastructure Improvements

This public outreach from the utility comes as the city council continues to delay approving the rate increases, which were first presented to them in December.

Last week the council voted 5-5 on the proposed gas rate increase before delaying the votes on hikes to the water and electric rates for another two weeks.

The numbers proposed to the council differ from those presented at Monday’s town hall meeting. Last week the council discussed a total increase of 10.5 percent over five years, rather than the 6.8 percent increase discussed at the public meeting. 

Against the increases were council members Gerre Currie, J Ford Canale, Frank Colvett Jr., Cheyenne Johnson, Jamita Swearengen, Berlin Boyd, and Sherman Greer.

Boyd said last week that MLGW has to find other ways to finance improvements to infrastructure. Boyd, echoed by Canale, pushed the idea of MLGW switching from TVA as a power source to a cheaper option or for TVA to lower its prices to become more competitive. This way the utility could use the money that would be saved to fund infrastructure improvements, Boyd said.

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Young explained that ending MLGW’s contract with TVA requires a five year notice and that the potential savings from switching aren’t a guarantee.

Meanwhile, Jones and Robinson contending that something has to be done to improve the infrastructure, pushed for their colleagues to support the hikes.

Jones said the council is in its current position because of past councils’ inability to pass rate increases.

“Deferred maintenance does not go away,” Jones said. “So all that we are doing is postponing this, pushing it down the road, and just requiring a greater rate increase on the same rate payers that we are concerned about now by not taking any action.”

The council will vote on electric and water rate hikes at its February-19th meeting next week. The council could also reconsider its vote on a gas rate increase then.

Tune in to MLGW’s Facebook Live session at 1 p.m. for more information about the utility’s proposals.

Categories
Opinion The Last Word

What’s the Matter With Memphis? Time to Reconsider PILOTS

Parts of Thomas Frank’s What’s the Matter with Kansas?, a cheeky exploration of voters’ tendency to undermine their own self-interests, hold up better than others. Especially in this political era, I’m not sure if latté liberals’ fancy vocabularies drove working-class “values voters” into the arms of tax-spurning billionaire deregulators as much as Frank believed. And by using Kansas, a state whose population is 5 percent African-American, to illustrate his “backlash” phenomenon, Frank was able to conveniently ignore the large and growing segment of working-class Americans who still vote blue.

Whether by intention or not, the book’s enduring message comes in a critique of neoliberal policies — deregulation, union-busting, and the practice of luring businesses with economic incentives in the name of “job creation” — that are largely tolerated, despite their toxicity. It’s as if people stop listening when they hear “job creation” — just don’t tell them how much they’ll pay or who’s footing the bill for this “investment.”

I’ve been thinking about that critique a lot since Electrolux announced it would be shuttering its plant, well before the expiration of its PILOT agreement. Why was such a risky deal pushed through so quickly? Where was the outrage over the lack of of a clawback provision? The sub-optimal salaries? The $40 million commitment from the city and county? Were we so drunk on job juice that no one spoke up?

I’m no economist, but it was one-sided from the start. It’s a deal bad enough to make even Chris Wallace cringe. Sure, there was skepticism in 2011, after the deal was done and the shovels-and-hard-hats photo op had already taken place. But the jobs were the lede. The ugly details weren’t in the press release.
When the deal was announced, the unemployment rate in Shelby County was about 10 percent. For context, it was 3.6 percent in December. The hope, no doubt, was that a well-known brand and 3,000 new jobs would accelerate recovery from the recession. If the city, county, and state didn’t make the commitment, someone else would. That was the cost of doing business. Incentives are a necessary evil.

If that’s so, how do we prevent this from happening again? And who else is preparing to weigh anchor before the tax bill comes due? How much of the momentum I keep hearing about is fueled by property taxes?

Back to Kansas for a moment: Kansas City, Missouri, and Kansas City, Kansas, were engaged for years in a race to the bottom for taxpayer-funded business investment. Companies would take short-term leases to leverage a sweeter incentive package across the river. Over a five-year period, according to a Hall Family Foundation study, Kansas and Missouri gave up $200 million in tax revenue for 400 jobs. Kansas had paid $340,000 per job. In 2011, an alliance of Kansas City businesses petitioned both states’ governors to figure out a better way.

Yes, this was happening as Memphis, Shelby County, and Tennessee were filling a vault with coins for Electrolux to dive into, Scrooge McDuck-style. Set that aside for a moment. It was the businesses who said, “This isn’t really helping us as much as you think.” The so-called border war became so costly, both states — Missouri in 2014, and Kansas in 2016 — have proposed truces.

It’s an extreme example, but Memphis, as a neighbor to Arkansas and Mississippi, is in a position similar to the Kansas Cities. Memphis is in a financial position that necessitates creativity and restraint, and with a lot of in-state competition in Nashville. I get it. But if incentives are necessary, so is transparency. So is equitable pay.

Basically, we’re told, we can’t get by on our charm and good looks alone; to get the big boys to notice us, we’ve got to put out. Fine. There’s a difference between flirting and begging for a date, though. It’s nice to see local and state officials working to recoup Electrolux’s tax backlog and prevent such a swindle from happening again, but it never should have happened the first time. Not without public input. Not without taxpayer protections in place, should the company decide to bail on Memphis the way it bailed on its facility in Canada (spoiler alert). There were signs.

We should be angry that Memphis is, yet again, starring in a cautionary tale. That money ain’t coming back. However, there may be a hidden opportunity to reshape the definition of “business-friendly.” Communities in every state are dealing with this. Maybe we can be the ones to say, “We make the rules now.” If there’s any positive takeaway from this debacle, it’s that more people are paying attention. I hope our leaders are prepared to start answering more questions.

Jen Clarke is a digital marketing specialist and an unabashed Memphian.