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Memphis City Council approves $18 million contract to outsource MLGW call center jobs to New York company

The utility has 85 full-time employees and 16 part-timers with 3 open positions currently in the call center.

MEMPHIS, Tenn. —

The next time you call utility Memphis Light Gas and Water (MLGW) after a damaging storm or power outages the person answering might not be in the 901. 

MLGW is outsourcing call center jobs to a company called DiRad Technologies out of New York. It’s a move that MLGW union leader Corey Hester, business manager of the union IBEW 1288 feels is unnecessary. 

“Those are the dollars our citizens can benefit from. That money can go to help the citizens of Memphis get these jobs,” Hester said. “This been going on for years. All of sudden you need a contractor, no.” “You got eighty-something, full-time employees, another 15 to twenty part-timers. You could’ve easily got rid of those part-timers and made them full-time.“. 

The current call center has 85 full-time employees and 16 part-timers with full-time workers being paid between about $26 to $32 dollars an hour. 

MLGW CEO Doug McGowen told the city council Tuesday that the utility wants to outsource call center jobs to only deal with calls during high-volume periods  

“It is only to match the uptick in calls that we have, and it will ramp back down when we no longer have the calls,” McGowen said.  

Though council members questioned the contract the council voted unanimously to approve a five-year, $18 million dollar contract.   

“Why is this necessary when the current staff you have right now has gotten you where you want to be from a customer service standpoint,” city council chairman Martavius Jones said.  

It’s a move owner of American Tuxedos, Jacqueline Caradine, in Bartlett says she doesn’t mind. 

“Especially being in the field that I'm in’; I’m using machinery to complete orders,” Caradine said. “Even when I’m having to use my credit card machine, I'm cash only...” 

Jacqueline says her business has been in the same space for three years and about every 90 days (about 3 months) she suffers power outages, stalling business and causing her to constantly call the utility.  

“There's a chance I get my service back on faster if I'm not sitting on hold, you know, for however long, waiting for someone to answer,‘ Caradine said. “So, I’m okay with them outsourcing it.” 

MLGW also dropped the residency requirement for employees last week — utility employees no longer have to live in Shelby County. 

The utility says they hope this will with efficiently during high call times. 

 

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