OAKLAND, Calif. (BRAIN) — The National Labor Relations Board filed a complaint against REI Co-op on Thursday, finding it broke the law by withholding raises and annual bonuses from workers at the chain's 11 unionized stores.
In its 15-page complaint, the NLRB said withholding raises and bonuses is retaliation against union stores and that REI hasn't bargained in good faith. The NLRB seeks to have REI retroactively provide wage increases and bonuses that match those in non-union stores.
REI must answer the complaint on or before April 2. A hearing is set for Dec. 9 at the NLRB Oakland regional office before an administrative law judge.
"Federal law requires us to bargain in good faith on all aspects of the employment agreement, including pay and benefits, rather than making unilateral changes," according to an REI statement provided to BRAIN. "We're actively negotiating these topics with the union, so no pay changes have been implemented — there's nothing to 'withhold.' REI has always negotiated — and will continue to negotiate — in good faith with stores that have chosen union representation."
The union said the benefits have been part of REI's employee package for more than a decade and have been declined since stores began bargaining. For the REI SoHo location in New York, that's been in excess of three years.
"After working for REI for about nine years now, I still make less than people who were just hired," said Ace Hainley, SoHo store sales specialist. "I also just had major surgery and had to scrounge for money while REI illegally withheld my Summit Pay (annual bonus), which would have covered many of my medical expenses. I'm so happy that the NLRB agrees with the union and hope that this can be resolved quickly and with full cooperation on REI's part."
"REI has illegally withheld thousands of dollars from me and my unionized co-workers since we won our union election in 2022," said Sam Wirt, a unionized Berkeley, California, store sales specialist.
Since 2022, in addition to SoHo and Berkeley, REI locations that have voted to unionize include Cleveland; Chicago; Boston; Durham, North Carolina; Maple Grove, Minnesota; Bellingham, Washington; Castleton, Indiana; Santa Cruz, California; and Greensboro, North Carolina. None has reached first union contracts with REI. Currently, there are 34 unfair labor practice charges documenting 175 violations of labor law still pending with the NLRB.
In January, REI President Eric Artz announced that he will retire at the end of March and will be succeeded by former co-op board director Mary Beth Laughton.
