Outstanding revenue in 2022 for REI, yet financial deficit still seen
Outdoor retail giant REI has made significant strides in various areas over the past year, achieving record sales and expanding its environmental initiatives, while also addressing employee concerns through anti-bias training and wage increases. However, these efforts have not quelled unionization efforts among its workers.
REI introduced anti-bias training in hiring and saw an increase in BIPOC employee representation to 25.9% last year. The company also achieved climate neutrality in its operations for the third consecutive year and was powered by 100% renewable electricity for the tenth straight year. These environmental commitments, coupled with its focus on diversity and inclusion, have contributed to a positive work environment. More than 81% of REI employees report feeling like their leaders take a genuine interest in their humanity and well-being.
Despite these improvements, 11 REI stores have voted to unionize in locations including New York City, Berkeley, Chicago, and others, reflecting a growing interest in collective representation. Union organizers and members, represented by the United Food and Commercial Workers (UFCW) and the Retail, Wholesale and Department Store Union (RWDSU), have pursued formal collective bargaining agreements as a step beyond just company-initiated pay increases.
Recent agreements establish a new national bargaining structure to ensure store-level contracts can be negotiated collectively, which unions consider important for solidifying gains and preventing unfair labor practices. Unfair Labor Practice (ULP) charges filed with the National Labor Relations Board against REI were dropped as part of this progress, indicating prior tensions despite improvements in pay and bonuses.
REI has responded to these unionization efforts by beefing up its membership benefits for the first time in its 84-year history. The retailer is providing medical coverage regardless of how many hours an employee works, and has invested $50 million towards pay raises for hourly employees and another $92 million towards employee retirement and bonuses. REI is also seeking to maintain momentum by creating a network of more than 250 speakers, mentors, advisers, and investors through its REI Path Ahead Ventures incubator for founders of color in the outdoor industry.
In addition, REI made its #OptOutside policy permanent, which means closing on Black Friday and paying employees to enjoy the outdoors. The company remains focused on a path back to sustainable profitability for the co-op to ensure a healthy long-term future.
Despite facing union organizer concerns, REI's efforts to improve employee pay and conditions have not gone unnoticed. 78% of Black, Indigenous, and people of color at REI report feeling a sense of belonging, and the company added 1.3 million members in 2022, bringing its total count to 23 million. REI's benefits for members include exclusive gear collections, free shipping, the ability to buy and trade in used gear, discounts on shop services and rentals, access to member sales, and an ability to earn money back from its annual Co-op Member Reward.
In 2022, REI swung to a $164.7 million loss, but achieved a record $3.9 billion in sales. Operating expense for REI rose 22.6% to $1.8 million in 2022. The company made $6.9 million in contributions to 503 nonprofits working toward a more inclusive outdoor community.
As an outdoor retailer, REI benefited from pandemic-induced consumer behaviors a few years ago. The retailer continues to navigate the challenges of the current market while staying committed to its values and its employees.
[1] Unionization Efforts at REI Continue Despite Improved Employee Conditions [2] REI Workers Push for Unionization Amidst Improved Employee Conditions [3] Unionization at REI: The Pursuit of Formalized Labor Agreements [4] Unionization at REI: Beyond Wage Improvements [5] Understanding the Unionization Dynamics at REI
- Despite the improvements in employee conditions at REI, such as anti-bias training, climate neutrality, and increased representation of BIPOC employees, the company continues to face unionization efforts from its workers.
- As REI's efforts to improve employee wages and working conditions continue, the company's workers are pushing for formal collective bargaining agreements beyond just company-initiated pay increases.
- In the face of growing unionization efforts, REI has responded by beefing up its membership benefits, providing medical coverage for all employees, investing in pay raises, employee retirement, and bonuses, and creating initiatives to support founders of color in the outdoor industry.
- The unionization efforts at REI are not just about wage improvements, but also about establishing a formalized labor agreement to ensure store-level contracts can be negotiated collectively and prevent unfair labor practices.
- To understand the unionization dynamics at REI, one must consider the company's commitments to environmental sustainability, diversity, and inclusion, as well as its efforts to improve employee conditions and its response to unionization efforts through membership benefits and support for founders of color in the outdoor industry.
