REI Co-op is pushing back on accusations from the REI Union Wednesday that it illegally backed away from collective bargaining and unilaterally instituted cuts to pay and benefits.
The labor collective — 11 unionized stores backed by various United Food and Commercial Workers and Retail, Wholesale and Department Store Union locals — had been negotiating with the outdoor retailer for months and in February nearly unanimously rebuffed REI’s most recent offer, the union said by email. After presenting its “last, best, and final offer,” REI said by email that it declared an impasse, a legal designation that allows a company to institute changes without the union’s blessing.
The union is challenging that, calling the impasse illegal and noting that the negotiations have produced 25 tentative agreements.
REI’s changes feature cuts rejected by the union and include adjustments to retirement contributions, vacation time and sick time. The changes will be effective July 1, according to a Feb. 2 memo to employees from CEO Mary Beth Laughton that REI shared with Retail Dive. Laughton said that base pay, leave and paid time off to be outdoors, a paid Opt Outside day off, paid sabbaticals, and gear and travel discounts, remain unchanged.
The retailer is also cutting its starting hourly wage for employees hired after July 1, a spokesperson confirmed by email.
Laughton’s memo went out during the negotiating process, a move the union characterized as “a key marker of bad-faith bargaining.”
“Among many others, they cut our retirement, our health care, our vacation days, holiday pay for part-time workers, plus the personal and unpaid time we’ve always set aside to go outside and return with real experience that we could pass on to our members,” REI Bellingham store worker Alex Pollitt said in a statement. “It’s like they think the outdoors are only for the people who can afford it.”
An REI spokesperson said the company “cares deeply about our employees” and rejected the union’s description of the breakdown.
“We strongly disagree with the union’s characterization of recent events,” the spokesperson said. “At every step, our focus has been on reaching agreements that are fair, sustainable, and in the best interest of our employees and the co-op. REI did not act illegally, nor did we walk away from negotiations. We have shown up consistently, constructively, and in good faith, putting forward proposals focused on competitive pay and benefits.”
In her memo to employees, Laughton stressed that the company is in difficult straits.
“We are facing a reality that our financial position remains challenging,” she said. “We’re still spending more than we bring in and expect continued economic pressure this year. While we’ve taken significant steps already to manage costs, we’re still on the climb toward a healthy financial position. Getting there will require continued discipline and close attention to our largest expense areas.”
But the retailer’s latest move may also help solidify the idea that it is antiunion and antiemployee, which reputational experts have said also comes with a cost.
Cara Salpini contributed to this story.
