REI’s Response to a Store’s Unionization Effort Forces Tough Reconciliation With Progressive Image

The pandemic exposed bitter fissures between companies and their staffs. But for brands that have aligned themselves with progressive consumers, such as outdoor recreation retailer REI, dealing with labor strife cuts two ways. The 85-year-old Seattle sporting goods brand, which has 165 locations across the U.S., is being confronted by staffers at its New York SoHo location trying to form a union. The labor action is a direct blow against REI's stance as a "consumer's co-operative," which the company says is based on "shared values" between management, staff and its devoted shoppers. In the past, most consumers might have ignored a picket line. Not any more. At the time when more consumers connect their political interests to their brand choices, marketers that are perceived of hypocrisy in any action risks alienating their most loyal customers. And the blow-back on social media can be especially damaging. For the most part, brands can still survive labor actions against them. Starbucks, Amazon and Kellogg's were all targets of union building efforts that ultimately failed. But the antipathy, however temporary and small, was a marketing cost those companies still have to bear. How to Be a C-Suite Unifier For REI, accusations of "union busting" seems at odds with the projected image of a progressive brand that values employees. "The damage is at the core of what makes their brand unique, which is that you think they're authentic," said Allen Adamson, co-founder of branding strategy firm Metaforce. When its SoHo store's 116 employees filed for unionization on Jan. 21 under representation by the Retail, Wholesale and Department Store Union, president and CEO Eric Artz responded in a companywide email, which an REI spokesperson reiterated in a statement, saying, "We do not believe placing a union between the co-op and its employees is needed or beneficial." The brand is attempting to solve this challenge without compromising on its "one for all, all for one" philosophy. Initiatives such as its #OptOutside program, where REI stores close on Black Friday and employees and consumers are encouraged to instead enjoy the outdoors, have been celebrated as forward-thinking. Having a work-life balance became something the outdoor brand supported for its consumers, but when the opportunity for it to bring its values full circle presented itself, it opted to follow in others' footsteps instead of blazing its own trail. "All the good stuff that they're trying to do can be undermined by one item like this because it cuts at the core," Adamson said. "To be seen as doing the right thing, you have to do the right thing not only when you're trying to sell me, but when I'm not watching." https://twitter.com/UnionElections/status/1485334800483467274?s=20&t=v4VJOFobKxmlgVKKhOQ1tg And the timing couldn't be worse for the brand to deviate from its brand image as the "Great Resignation" continues with labor shortages hitting all sectors. According to a Bureau of Labor Statistics report, 4.5 million people left their jobs in November, another 4.3 million quit in December. "Well, it's not ideal, right? Bad press about what kind of place you are to work isn't what any employer wants right now," said Adam Kleinberg, CEO of interactive agency Traction. "They're looking to attract not only customers with progressive values but employees with progressive values, and a story that challenges your credibility hurts the brand on both the customer side and the prospective employee side." Values take a hike? In its statement, REI said, "It’s clear that some of the employees in our Soho store have concerns. We remain committed to our people first—and, as we always do, we will work closely with our Soho store team." REI sales lead and union organizing committee member Tyler Mulholland said employees pointed to a shift in values in how the hiking and camping goods retailer responded to employee concerns over the course of the pandemic. "Over time, the atmosphere shifted from one where everyone was concerned [and] everyone had open, free dialogue to one where questions weren't being answered quite so quickly or quite so transparently. And some issues were just never brought up again," Mulholland told Adweek. REI employees hope the brand will voluntarily recognize the union. If not, the union can leverage its co-op members and shareholders and take it to a vote in favor of unionizing. Alternatively, the battle could transition into a months-long federal procedure. "I do think [forming a union] is the most direct continuation of [REI's] legacy, with a bunch of people who are interested and passionate about the outdoors. We want to share that enthusiasm, but we would like to be able to work in conditions with dignity and safety," Mulholland added. The brand can take it According to Kleinberg, the effects for REI will be negative in the short term as some consumers opt to shop elsewhere or take up the workers' cause on social media. But it won't destroy the brand in the long term. However, Adamson believes this could be just the start of REI's bad press. "Most brands live or die by word of mouth and social media, and this is rocket fuel for negative social media because people love to say, 'Aha! Gotcha. I found out who you really are.'" Kleinberg said he expects more retailers will continue to face unionization bids in coming months. In fact, it's happening right now. A union spokesperson said other unspecified REI stores across the country approached RWDSU with interest in unionizing. As workplace expectations continue to sharpen, brands will need to dig deeper to ensure that management, stakeholders and customers accept the state of staff treatment. After all, every staffer is a frontline brand representative. "Every brand out there that is not thinking about the employee experience is missing out," Kleinberg said. "Employee branding, brand building and experience design is going to be a discipline that CMOs need to consider in the years to come."