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> >Date: Thu, 08 Jul 2004 18:23:25 -0400
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> >From: UCW-CWA <[log in to unmask]>
> >Subject: UT Memphis Job Cuts/ Outsourcing at UTK
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> >Below are two articles and a column on UT job cuts and outsourcing found 
> >in Knoxville News Sentinel.  Like many things UT does, we find out about 
> >important decisions like the ones detailed below at the last minute and 
> >without any public input into the decision.
> >
> >URL: 
> >http://www.knoxnews.com/kns/local_news/article/0,1406,KNS_347_3019831,00.html
> >
> >UT cutting 120 positions at Health Science Center
> >July 8, 2004
> >
> >The University of Tennessee announced Wednesday afternoon it was cutting 
> >120 positions at the UT Health Science Center in Memphis because of budget 
> >constraints.
> >
> >According to a UT release, 81 of the positions are already vacant and the 
> >school is trying to find positions for the 39 employees who are losing 
> >their jobs.
> >
> >UTCHS, which has nearly 3,000 faculty and staff employees, is the home of 
> >UT's medical, dental and pharmaceutical schools among many other programs.
> >
> >"This work force reduction is necessary in order to balance the budget for 
> >the 2005 fiscal year that began on July 1, 2004," said UTHSC Chancellor 
> >Bill Rice. "The combination of a 9 percent reduction in state 
> >appropriations last year and increases in operating costs in the coming 
> >year are the primary causes of our budget difficulties."
> >
> >Rice said that tuition increases aren't enough to cover mandatory salary 
> >increases for faculty and staff.
> >
> >The release indicates that 20 of the affected 39 employees have been 
> >placed in other jobs with UT or made other arrangements. It also states 
> >the school is trying to help the remaining 19 employees.
> >
> >Their jobs end Oct. 6, it states.
> >
> >All 39 of the currently filled positions are nonfaculty jobs. Of the 81 
> >unfilled slots, 56 were nonfaculty positions.
> >
> >"At this time, we do not expect personnel reductions to affect the quality 
> >of academic programs," Rice said in the release, "however, we hope this is 
> >the last year we have to do this, because we cannot continue to operate at 
> >this level for a long period of time."
> >
> >The release doesn't detail how eliminating jobs that are already mostly 
> >unfilled and moving some of the employees to other positions will result 
> >in $3.4 million in savings.
> >
> >Copyright 2004, KnoxNews. All Rights Reserved.
> >_______________________________________________________________________________
> >UT to outsource souvenir sales
> >Esports Partners will take over operation of merchandising as of Aug. 1
> >
> >By BILL BREWER, [log in to unmask]
> >July 7, 2004
> >
> >The University of Tennessee will outsource sales of its Vols athletic 
> >merchandise beginning Aug. 1 after deciding that sports retailing is not 
> >part of its core business and should be handled by an outside company.
> >
> >A letter of intent to hand off the merchandising operation from UT's men's 
> >and women's athletics departments to_ eSports Partners is in place and a 
> >five-year contract is to be signed in the next 10 days, Mike Hamilton, 
> >men's athletics director, said Tuesday.
> >
> >In the agreement, UT will turn over marketing and sales of products that 
> >incorporate the Power T and Lady Vols logos — ranging from jerseys and 
> >hats to watches, auto flags and computer mice. In exchange, the athletics 
> >departments will get 20 percent of the gross sales.
> >
> >Dallas-based eSports Partners is guaranteeing UT a minimum return of 
> >$529,500 in the first year, up from about $375,000 last year, according to 
> >Hamilton, who said eSports sales are to escalate over the contract, with 
> >projections of about $4 million in revenue at the end of five years.
> >
> >"It guarantees us a revenue stream that is higher than what we've been 
> >netting," Hamilton said. "I think they'll bring an element of 
> >professionalism to our operation and the fans."
> >
> >As part of the agreement, eSports will be required to make a capital 
> >investment of $325,000 to the athletics departments' retail store, 
> >Tennessee Traditions.
> >
> >Plans are to relocate the store in Stokely Athletics Center closer to 
> >Neyland Stadium and Thompson-Boling Arena. More Tennessee Traditions 
> >stores could also open.
> >
> >The store will close in mid-July and reopen Aug. 1 under eSports 
> >management. Hamilton said four full-time employees and a half-dozen 
> >part-time workers will lose their jobs but can interview for employment 
> >with the new management. He said efforts are also being made to place 
> >affected workers in other jobs within the university.
> >
> >Also affected will be dozens of contract vendors who sell merchandise at 
> >Neyland Stadium, Thompson-Boling and other sports complexes on campus.
> >
> >Hamilton and Michael Mc-Kay, CEO of eSports, said the vendors are still 
> >needed but exactly how many and who hasn't been determined.
> >
> >In addition to Tennessee Traditions, fans will see changes in the way 
> >merchandise is sold at UT games. Hamilton said manned kiosks with more 
> >products will replace existing vendor set-ups, with cash registers at each 
> >location to handle more sales.
> >
> >The new operation will also use more hawkers in the stadium and arena to 
> >sell merchandise, Hamilton said.
> >
> >Other sales and marketing tools will be increased use of the VolMall Web 
> >site and an expanded Vols merchandise catalog. eSports plans to heavily 
> >promote Internet and catalog sales.
> >
> >Chris Fuller, assistant athletics director for sales and marketing, said 
> >the UT-eSports relationship should work because the Vols' and Lady Vols' 
> >brands have national appeal.
> >
> >"It's a good opportunity for eSports. This is a next step for them," 
> >Hamilton said, referring to the company's expansion from professional 
> >football to collegiate athletics.
> >
> >"Our focus has been to be everything to all people and I don't think you 
> >can do that in today's business environment and be successful," he added.
> >
> >Hamilton said customers should not see price increases with the new 
> >merchandise manager. While eSports will set prices, the company's leverage 
> >in buying wholesale products on a mass scale to serve all its clients will 
> >keep prices down, he noted.
> >
> >McKay said the company represents about 25 percent of teams in the 
> >National Football League.
> >
> >"We expect our prices to be the same or lower and they_ (eSports) haven't 
> >flinched at that. I can't have that (higher prices)," Hamilton said.
> >
> >The company responded to the athletics departments' request for proposals, 
> >according to Hamilton, who said UT also considered outsourcing its food 
> >and beverage concessions but decided to continue operating that in-house.
> >
> >By outsourcing merchandise sales and marketing, Hamilton said the 
> >athletics departments will save $1.3 million a year in expenses and shed 
> >the inventory risk, which amounts to about $700,000 in products the 
> >athletics departments must move.
> >
> >McKay said the change will put more money back into the athletics 
> >departments, reducing their effort and risk.
> >
> >"Joan Cronan, UT women's athletics director, said the arrangement will be 
> >good for both departments and their fans. Cronan said an immediate benefit 
> >will be an increased level of professional sales and marketing.
> >
> >"One of the things I'm proudest of is the value of the Lady Vols logo," 
> >she said. "e-Sports broadens our coverage to a national and international 
> >branding by way of the Internet and everything else."
> >
> >McKay shares that view. He said eSports is bullish on the Lady Vols brand.
> >
> >Cronan said the athletics departments haven't been doing anything wrong in 
> >selling its merchandise. "We just want to improve on what we're doing, and 
>from a financial standpoint it makes sense," she said.
> >
> >Assistant business editor Bill Brewer may be reached at 865-342-6319.
> >
> >Copyright 2004, KnoxNews. All Rights Reserved.
> >
> >_______________________________________________________________________________
> >(the following column I have left much of it out of it because it is not 
> >relavant to the final paragraph, where Cagle proposes privatization of UT 
> >concessions)
> >
> >Wamp, Hilleary, Bryant race likely for Senate; how hard is it to check 
> >address?
> >By FRANK CAGLE
> >July 3, 2004
> >
> >According to a recent business front story in the News Sentinel, experts 
> >say large-scale venues that do in-house concessions rather than contract 
> >it out lose $1.69 per customer in potential concession sales.
> >Does that mean the University of Tennessee Athletic Department loses 
> >$169,000 in sales at every home football game (100,000 fans at $1.69 
> >each)? Does that explain why they have had to gouge longtime ticket 
> >holders and take their seats if they don't contribute more money?
> >
> >Given the yummy nature of those Neyland Stadium hot dogs, it's hard to 
> >believe the genius in charge isn't maximizing revenue.
> >
> >Frank Cagle is a political analyst and the host of Sound Off on WIVK 
> >FM107.7 and WNOX AM990. His guest Sunday is Gary Sellers, who is heading 
> >up a petition drive to repeal the Knox County wheel tax. You may reach 
> >Cagle at [log in to unmask]
> >
> >
> >
> >
> >
> >__________________________________________________________________________________________________
> >UNITED CAMPUS WORKERS is a democratic, member-run union at the University 
> >of Tennessee, affiliated with the Communications Workers of America, 
> >AFL-CIO.  We're building a strong voice for all campus workers and public 
> >service employees in Tennessee. Join us!
> >
> >United Campus Workers- Communications Workers of America Local 3865
> >1721 West Cumberland
> >Knoxville, TN  37916
> >Toll Free:  1-877-CWA 3865
> >Office:(865) 329-0085
> >President Sandy Hicks:  (865) 405-2825
> >Organizer Cameron Brooks:  (865) 387-4408
> >E-mail:  [log in to unmask]
> >http://www.ucw-cwa.org
> >
> >
> >