Restoring Democracy to the USHCC

By Alfred Placeres

July 14, 2011

  As President of the New York State Federation of Chambers of Commerce, I have called on the United States Hispanic Chamber of Commerce (USHCC) to restore Board elections at their annual membership meeting during its upcoming national convention. This 32nd annual national gathering will be held from September 18-21, 2011, in Miami, Florida. I have also insisted that they hold an annual membership meeting, which was done away with in 2007 by the group's NationalBoard without membership participation.

 This is outrageous! How can the USHCC claim to speak for over 200 Hispanic chambers when their chamber members have zero input in their decision-making process? The USHCC has not held an annual membership meeting or a Board election since 2007. My call for these reforms has caused quite a fuss. Chambers throughout the country have chimed in to express their opinions. I find this refreshing and long overdue. Our local chambers have been quiet for too long.

 The USHCC was established in 1979 as a national organization to represent the interests of the nation's almost 3 million Hispanic-owned businesses. I am a former elected USHCC Board Member. In fact, I voted to replace the elections of National Board members with an appointment process. The Board at that time desperately needed to attract prominent Hispanic business men and women who could help strengthen the USHCC. For years the USHCC Board had been caught up in gridlock, fueled by those ethnic and regional rivalries that often divide Latino national organizations. The problem with some elected Board members was that they felt beholden to the local constituencies who elected them. These members stifled the chamber's growth because they lacked the skill sets and vision to lead a national organization. The USHCC desperately needed an infusion of new leadership, and so I voted at the time to give this process a chance.

 It appears that the Board appointment process has produced much of what was hoped for. Today the Board has several members who serve as presidents of Hispanic 100 Firms. Corporate America is impressed and they have increased their financial support. As a result, the USHCC has been able to provide needed programs for its chamber members. There is, indeed, much to be proud of.

 However, something was lost in this transition, which is the basis of my current grievance with the USHCC. I believe that the National Chamber is, again, in need of reform. We need to see what has been sacrificed in moving from the membership holding regional elections to the Board making appointments. While the USHCC may have become more prominent and efficient, something vital to the future of this organization has been lost.

 What is the role of the Chamber membership in the USHCC today? It turns out that the baby got thrown out with the wash water. How can the USHCC be the spokesperson for over 200 Hispanic Chambers when the members have no say in the governance? Membership participation may not be efficient but it is essential to any democratic endeavor.

The USHCC cannot call this year's event a "National Convention" if the Chamber membership never gets to convene? "Convene" does not mean attending a National Board-controlled meeting with an agenda filled with reports of USHCC accomplishments. No way this will pass for a membership meeting this year.

The Chamber membership has to have an opportunity to raise their issues concerning USHCC Governance. We have waited four years for a membership meeting and we are not going down to the Miami Convention to sit through a synchronized swimming exercise.

 My request for USHCC governance change resulted in many responses from the Chamber membership.

 Henry Calderon, President of the East Harlem Chamber of Commerce, who was also a former UHSCC Board Member, stated: "In the 1990s, I chaired the USHCC Chamber Membership Credentials Committee. Back then, all USHCC Board members were elected by the chamber membership at elections held during our annual conventions. What happened? Today, USHCC Board Members can just re-elect themselves and, apparently they do!  As I recall, an annual membership meeting is required under the USHCC bylaws and New Mexico law, which governs the chamber." Louis Nuņez, President of the National Latino Restaurants Association, added that his association has refrained from joining the USHCC for precisely those two reasons: "Unless the USCHCC reinstates the annual chamber membership meeting and Board elections, our association wants no part of them."

 USHCC President and CEO, Javier Palomarez, is expected to be in New York City today. NYSFHCC and the eighteen New York Chambers that comprise their membership have requested that he respond to their two demands during his visit. Restoration of these two critical membership rights will determine whether these chambers will be renewing their USHCC chamber membership and whether they will participate in this September's national "convention."

 Finally, here is how George A. Zeppenfeldt-Cestero, President of the National Hispanic Chamber of Commerce on Health, sums up the problem:

 "Board transparency and the democratic principles of elections are core elements of association governance and bring both credibility to chambers of commerce and legitimacy in the eyes of regulatory agencies and corporate America. Without adherence to these processes, we are seen as fragmented and ineffective organizations and subject to ridicule by the communities we were established to serve."

 Thank you, George, I could not have said it any better than that. Our chambers have invested too many years and resources in the USHCC to throw in the towel now.

_____________________________________________________________ 

Alfred Placeres is a prominent New York attorney and serves as President of the New York State Federation of Chambers of Commerce. He is a graduate of the University of Pennsylvania Law School and the recipient of New York City's 2010 MWBE Advocate Award. Mr. Placeres can be contacted at nysfhcc@gmail.com.