For the past six months, unionized REI workers have been under an agreement to avoid publicly disparaging the company as the two parties try to hammer out a first contract for the outdoor retailer’s 11 unionized stores.
Negotiations hit a wall in February. When the agreement to stay silent ended Wednesday, the union workers had a lot to say.
“REI has not been the wholesome, friendly co-op they market themselves as,” said Alex Pollitt, a worker at the unionized REI store in Bellingham. “At the table, they ripped off their mask and showed us who they are.”
At a rally outside the REI store in downtown Seattle on Wednesday, Pollitt and other unionized REI employees accused the Issaquah-based company of walking away from the table and bargaining in bad faith by cutting employees’ compensation in the middle of negotiations. The workers and labor organizers were joined by King County Executive Girmay Zahilay and King County Councilmember Teressa Mosquea, who echoed the REI Union’s criticisms.
“King County stands with you in a fight for a fair contract,” Zahilay told the gathered workers.
The union accused REI of illegally declaring “impasse” — a legal term for when both parties have exhausted all reasonable efforts to negotiate — which allows the company to implement changes without the union’s approval.
“We are absolutely not at impasse,” said UFCW 3000 Chief of Staff Sarah Cherin, who helped represent REI workers at the bargaining table. “There’s a lot of issues that they hadn’t responded to.”
In a statement to KNKX, REI said it “cares deeply about our employees” and strongly disagrees with the union’s characterization.
“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,” the statement said. “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.”
Benefit cuts
In February, REI told workers it would be reducing benefits for existing employees and cutting pay for new hires, according to an internal memo obtained by KNKX.
In the memo, REI said it planned to lower its vacation day accrual rate and switch from a guaranteed retirement contribution to a “more traditional company match model.” The company said it will replace its company-wide sick day policy with one that conforms to legal requirements in each state, and that when people leave their jobs unused vacation time will be paid out only in states that require it.
Many other employee benefits remain unchanged, the memo said, including gear and travel discounts and a paid “Opt Outside” day off.
Apparently anticipating employee pushback, the memo’s FAQ section included the question: “If REI needs to save money, why are they cutting employee benefits first instead of other areas of business?”
In response to its own question, the company said getting to a healthy financial position will require “discipline and close attention to all our expenses.”
In a separate internal memo to employees obtained by KNKX, REI CEO Mary Beth Laughton said the cuts are necessary because “we are facing a reality that our financial position remains challenging.”
“We’re still spending more than we bring in and expect continued economic pressures this year,” Laughton said. “While we’ve taken significant steps already to manage costs, we’re still on the climb towards a healthy financial position.”
REI has struggled with profitability in recent years. It reported $3.53 billion in revenue in 2024, a decrease of 6.2% from 2023.
REI declined to comment on the specifics of the cuts outlined in the memos, but said in a statement that it “regularly and carefully looked at what we offer and how we can evolve it so that we can continue to offer an industry-leading rewards package while ensuring that it is financially sustainable for the co-op long-term.”
“We were transparent with employees about this and provided resources for them to learn more,” REI’s statement said.
The surprise pay cuts “blindsighted” the union and showed the company was bargaining in bad faith, said Pollitt, the Bellingham REI worker. He said he understood the company’s difficult financial situation, but suggested other areas where REI could trim fat, such as executive salaries or REI’s recently announced artificial intelligence initiative.
Pollitt’s reference to the AI initiative was met with boos from the crowd of union workers.
“They’re going to basically turn us into an AI experience on the website, and, God knows, maybe in the stores one day,” Pollitt said. “So we would like to bargain about that in the future.”
Impasse
Eleven REI stores have unionized since 2022. Over years of protracted negotiations for a first contract, unionized employees have regularly accused REI of employing aggressive union-busting tactics and refusing to bargain in good faith.
Last spring, the REI Union successfully urged REI members to reject the slate of candidates put forward by the company in its annual board of directors election. The successful campaign gave the union a new bargaining chip, and helped spur the most recent round of negotiations.
The two parties met 24 times over the past six months. The union’s main demands included wage increases and language around arbitration, just cause and guaranteed work hours.
On Jan. 30, the company presented what it described as its “last, best, and final offer.”
The union members voted it down by an overwhelming 98.5%.
Cherin, with UFCW 3000, described REI’s offer as “regressive and archaic.”
In a statement, REI said its offer was “designed to support our employees while protecting the future strength of the co-op,” and that the lack of agreement was “not due to a lack of effort, care, or respect for the bargaining process or for our employees.”
In a Feb. 24 letter to the union’s bargaining director, REI’s lawyer argued that the two parties had reached a “stalemate,” and that the company would be moving forward with implementing the economic terms outlined in its final offer.
“There is no realistic possibility that continuation of discussions at this time would be fruitful,” REI’s letter said. “The only objective conclusion is that the parties are at an impasse.”
The union disagreed. In a response to REI’s letter, UFCW 3000 said the union was still willing to negotiate.
“REI’s [last, best, and final offer] was not the result of good faith negotiations, and the union did not state that it couldn’t reach a deal without all priorities being met,” the REI Union’s response said.
The union argues that REI broke the law by declaring impasse and moving forward with implementing compensation cuts.
“This is abandonment, pure and simple. It’s clear that this is the kind of company they want to be: anti-union and anti-democracy,” said Cherin, with UFCW 3000.
Cherin said she was initially optimistic that Laughton, a former Nike executive who took over as REI’s new CEO in spring last year, would be willing to “turn a new leaf” and bargain in good faith. But over the course of recent negotiations, it became “eminently clear that that’s not the case,” Cherin said.
On Wednesday, the King County elected officials called on REI co-op members to contact Laughton and ask the company to return to the bargaining table in good faith.
“They’re disrespecting the very workers that made them profitable,” Councilmember Mosqueda said in an interview. “We think it’s disgusting, the type of union-busting techniques they’re using.”
Mosqueda, a co-op member herself, believes REI is straying from its purported progressive values.
In its statement, REI said it remains open and willing to return to the bargaining table and believes “productive dialogue is the best path forward.”
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