A decision to outsource the Fogelman Executive Conference Center has several FECC staff members and corporate clients, who frequently use the conference facility, concerned about the center's future.
Fogelman College of Business and Economics Dean John Pepin told staff members in December 2000 of his intentions to have the center outsourced -- a plan approved by the Tennessee Board of Regents. Since that time, several staff members and Fogelman clients have voiced their unhappiness with his decision.
"Fogelman has been losing money," Pepin said. "When the FECC is outsourced, the same company will manage the Wilson School of Hospitality and Resort Management, FedEx Emerging Technology Center and the FECC. We can't have competing hotel operations 200 feet away."
However, in a Jan. 4 letter to Charles Manning, TBR chancellor, staff members requested another look be taken at the status of the FECC after Pepin told them the center was losing money on a yearly basis. The letter also stated that the "upheaval" had caused some staff members to seek other employment on campus in order to remain state employees. Staff members also said a firm takeover would "have devastating results" for the center, including a drop-off in quality and image.
"No management firm will treat this facility like the staff does," the letter stated. "With all the interim positions on the campus we feel we have no one to turn to; therefore, we have chosen to go straight to the top, trusting this won't hurt us and are hoping you (Manning) will intervene for us. This staff that is so 'expendable' has actually been the heartbeat who has operated this facility all these years. There have been numerous directors and deans but the FECC staff just keeps doing their job no matter who is 'chief of the moment.'"
"The University is in the education business, not the hotel business," Pepin said. "The human and financial resources of The University do not have the time to operate and manage a hotel. We don't have the advance reservation systems that a hotel requires and we lack the experience.
"Outsourcing could be a positive situation. The organization could improve and employees could receive better job opportunities at the new corporation."
FECC Client Services Manager Donna Keel said if outsourced, the center would lose several regular clients -- such as FedEx, International Paper and the Shelby County Board of Education.
"The FECC is the only link between The University and some corporate companies," Keel said. "We offer a corporate training environment that lends itself to education."
"Outsourcing the FECC is a bad move," said Ed Champagne, former
manager of corporate education at International Paper and current director of learning and development for VP Buildings, Inc. "It is the wrong thing to do.
"I have used Fogelman since International Paper moved to Memphis in 1987. I have used every hotel and facility in the greater Memphis area and there is no better facility to conduct seminars than Fogelman. If Fogelman is outsourced, everything going for them will slowly disappear."
"The FECC offers a very professional atmosphere with a personal touch," said Debbie Burnette, conference coordinator with CREDO. "Depending on the quality of the new firm, we will not support The U of M if the FECC is outsourced to a management company."
According to Charles Shepherd, director of the FECC, three bids to outsource the center have been received from Wilson Hotel Management Co., Hilton and Aramark, the company currently holding the contract to provide food service for The U of M. Pepin said he will make a decision sometime in February.
"Due to various expenses the FECC has incurred over the past few years, Pepin does not want to subsidize the losses," Shepherd said.
Maurice Williams, staff senate president and crime prevention specialist, said although he has not reviewed all the information concerning the FECC outsourcing, he is unhappy with the prospect.
"I am deeply concerned about the many U of M staff that will be affected by job loss," Williams said. "I am very leery of the possible take-over of the center. I use the FECC strongly and it is a very unique center. Its uniqueness contributes to The University. The center is one of the best kept secrets of Memphis and it is right here on campus."
