SEATTLE (BRAIN) — REI Co-op announced in an email to employees that it will reduce starting pay for employees at retail stores, distribution centers, and its headquarters beginning July 1 and reduce benefits for all current employees.
Bloomberg was the first to report the news on Thursday after obtaining the email sent by CEO Mary Beth Laughton in February. An REI spokesperson forwarded the email to BRAIN on Thursday.
The pay cut percentage was not disclosed. A quick Google search shows the average starting pay for REI store employees is between $15-$20. For existing employees, the company's guaranteed retirement contribution will now be a more traditional company-match model; vacation time will accrue at a lower rate; and sick time moves from a standard store policy to one aligning with accrual requirements in each state.
After highlighting the success of the holiday shopping season and three-year Peak 28 strategic plan, Laughton wrote:
"... At the same time, we are facing a reality that our financial position remains challenging. 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. ... Benefits are personal, and we know changes like this matter. These types of decisions are not made lightly."
On Wednesday, the REI Union held a news conference in Seattle to discuss failed negotiations with the brand in the past six months and comment on the pay and benefits announcement.
"As part of their multi-years-long anti-union campaign and despite reaching 25 tentative agreements, REI made the decision to illegally declare impasse, walk away from negotiations, and unilaterally implement wage cuts for REI union workers," the union said in a news release, adding the workers' benefit package cuts are "a key marker of bad-faith bargaining."
The United Food and Commercial Workers International Union and the Retail, Wholesale, Department Store Union released statements condemning REI's actions.
"Like most businesses, we regularly and carefully look 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," the REI spokesperson told BRAIN in an email. "We were transparent with employees about this and provided additional resources for them to learn more."
Since 2022, 11 REI stores have unionized: SoHo, New York; Berkeley, California; Cleveland; Chicago; Boston; Durham, North Carolina; Maple Grove, Minnesota; Bellingham, Washington; Castleton, Indiana; Santa Cruz, California; and Greensboro, North Carolina.
