Chamber says threats not hurting membership

June 27--Backlash for supporting reduced benefits for city employees and retirees hasn't sidetracked the Greater Memphis Chamber.

The the 2,458-member business organization is standing pat, saying its newfound political advocacy is in members' best interests.

A chamber vice president said Friday that social media-fueled rumblings of a boycott by supporters of city employees have not had a significant impact on businesses that belong to the chamber.

"Business is not just a monolith, and we don't expect every chamber member to agree with every position we take, but overwhelmingly the businesses have said, 'Thank you for representing our interest,' " said Dexter Muller, senior vice president of community development.

The Memphis Police Association's Facebook page celebrates a proliferation of signs in windows of area small businesses, supporting public safety employees. The site touts a move by Lenny's Sub Shops to drop its chamber membership "in light of all the pension discussions."

Lenny's president Brent Alvord characterized the action this week as an effort to declare neutrality in the face of mounting pressure from customers who support city workers and retirees. Lenny's Memphis-based franchising office, which has 32 Memphis-area shops and 125 nationally, had joined the chamber in April, he said.

"We started getting all kinds of complaints and threats of boycotts at our local Memphis shops from all this stuff that's going on," Alvord said. "We didn't want to alienate any of our guests, so we withdrew our membership."

Muller, speaking for the chamber because president Phil Trenary was out of town, reiterated the position that restoring city government to sound financial footing is key to recruiting and retaining businesses and jobs.

Faced with large, underfunded pension and health care obligations, the City Council last week passed a budget that cuts benefits, raises health care premiums and spends the savings on the pension. The council will take up a measure July 15 to put newer employees under a 401(k) retirement savings plan rather than the pension.

There were comments by visitors to the police association's Facebook page about boycotting chamber members, but the association's communications focused on general calls to action, like this post on Thursday:

"Greater Memphis Chamber: You have picked a fight with people that run into burning buildings to save strangers. You have picked a fight with people that run toward the gunfire (to save strangers), as others are running away. What do you think these same people will do when you take away from their families? The fight is just getting started. Give us a call when you give!"

Police association president Mike Williams said, "I'm loving it" and added he believes the chamber is out of step with the population.

"The Chamber of Commerce represents really big businesses in this community," Williams said. "A lot of small businesses are in it for networking purposes and a lot of these small guys weren't explained what was going to happen. A lot of the small businesses are saying, 'Hold up. We didn't support this.' "

The association's Facebook page showed pictures of window signs at Wrapzody, a sandwich shop on Main that's listed in the chamber membership directory, and Brasfield's Service Center, at Quince and Ridgeway, that's not listed as a member. The owner of Wrapzody said she couldn't talk about it because she's a city employee.

Memphis firefighter Kevin Brasfield, whose family owns the auto repair shop, wasn't sure whether the grassroots protest will help the workers' cause.

"I don't know there's a lot we can do about it, but we can dang sure get the word out these guys are getting the short end of the stick. The men I work around and the women I work around will know I support them."

"There are 500 restaurants that are members of the chamber. Half of those guys have no idea the influence the chamber has against us," Brasfield said.

Muller said the chamber works on high-profile developments because they create opportunity for the 80 percent of chamber members that have 50 or fewer employees.

The chamber sent a mass email to members Thursday explaining its position and calling out the boycott threats.

"Yesterday, we were contacted by a small-business owner who shared with us threats made by public safety officers to boycott their business. We are extremely disappointed that the unions would try to turn their members against the small businesses that are the lifeblood of this city," the email said.

The city pension and health care reform efforts are exactly the kind of issue that chamber leaders had in mind when they decided within the last couple years that the organization should become more politically active. Previously, the chamber had primarily been a member service organization that hardly ever got involved in controversy. The Commercial Appeal is a chamber member.

"This is what the business community has wanted us to do," Muller said. "They have not had a voice of business on significant issues in the past. The chamber didn't weigh in on significant public policy issues. Our businesses have said to us very clearly, 'We don't have a voice unless you speak for us.' "

Issues motivating the dispute between municipal workers, the Greater Memphis Chamber and Memphis Mayor A C Wharton's administration revolve around these numbers:

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By the Numbers

6,000 -- Estimated number of city employees, whose health care premiums are increasing by 24 percent

1,100 -- Post-65 retirees without access to Medicare who will remain on the city's plan

1,500 -- Post-65 retirees with Medicare who lose their health premium subsidy

1,400 -- Pre-65 retirees who will lose their health premium subsidy

13 -- Surviving spouses and children of city employees killed in the line of duty who will remain on the city's health plan

$552 million -- The underfunded state of Memphis' pension program, according to two experts

$40 million -- The estimated amount Memphis must add to the pension fund each year to end the underfunded state

Source: City of Memphis, The Commercial Appeal

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