Latest / Omni Talk Retail / REI vs Employees | Fast Five Shorts

Transcript

REI vs Employees | Fast Five Shorts · Omni Talk Retail

• 0:00
  The
• 0:00
  REI
• 0:00
  union
• 0:01
  has
• 0:01
  voted
• 0:01
  to
• 0:01
  authorize
• 0:02
  a
• 0:02
  boycott
• 0:02
  of
• 0:02
  REI's
• 0:03
  annual
• 0:03
  anniversary
• 0:04
  sale,
• 0:04
  the
• 0:05
  co
• 0:05
  op's
• 0:05
  biggest
• 0:05
  revenue
• 0:06
  event
• 0:06
  of
• 0:06
  the
• 0:06
  year,
• 0:06
  with
• 0:07
  the
• 0:07
  final
• 0:07
  decision
• 0:08
  expected
• 0:08
  by
• 0:08
  May
• 0:08
  1.
• 0:09
  Following
• 0:09
  REI's
• 0:10
  decision
• 0:10
  to
• 0:11
  declare
• 0:11
  an
• 0:11
  impasse
• 0:12
  in
• 0:12
  contract
• 0:13
  negotiations
• 0:13
  and
• 0:14
  begin
• 0:14
  unilaterally
• 0:15
  cutting
• 0:16
  benefits
• 0:16
  and
• 0:16
  wages.
• 0:17
  It's
• 0:17
  never
• 0:17
  good
• 0:18
  when
• 0:18
  you
• 0:18
  have
• 0:18
  to
• 0:18
  read
• 0:18
  a
• 0:18
  headline
• 0:19
  like
• 0:19
  that.
• 0:19
  According
• 0:20
  to
• 0:20
  Retail
• 0:20
  dive,
• 0:21
  workers
• 0:21
  at
• 0:21
  11
• 0:21
  of
• 0:22
  REI's
• 0:22
  roughly
• 0:23
  190
• 0:23
  stores
• 0:24
  voted
• 0:25
  by
• 0:25
  an
• 0:25
  overwhelming
• 0:26
  majority
• 0:26
  to
• 0:27
  authorize
• 0:27
  the
• 0:27
  boycott
• 0:28
  after
• 0:28
  REI
• 0:28
  declared
• 0:29
  an
• 0:29
  impasse
• 0:29
  in
• 0:30
  February
• 0:30
  and
• 0:30
  began
• 0:31
  implementing
• 0:31
  to
• 0:32
  benefits,
• 0:32
  starting
• 0:32
  wages
• 0:33
  and
• 0:33
  raises,
• 0:34
  moves
• 0:34
  the
• 0:35
  union
• 0:35
  has
• 0:35
  called
• 0:36
  unilateral
• 0:37
  and
• 0:37
  illegal.
• 0:38
  The
• 0:38
  breakdown
• 0:39
  followed
• 0:39
  a
• 0:39
  January
• 0:40
  last
• 0:40
  best
• 0:41
  and
• 0:41
  final
• 0:41
  offer
• 0:42
  from
• 0:42
  REI
• 0:43
  that
• 0:43
  the
• 0:43
  union
• 0:43
  rejected
• 0:44
  unanimously.
• 0:45
  REI
• 0:46
  says
• 0:46
  the
• 0:46
  union
• 0:46
  has
• 0:46
  yet
• 0:46
  to
• 0:47
  make
• 0:47
  a
• 0:47
  counterproposal
• 0:48
  that
• 0:48
  would
• 0:48
  restart
• 0:49
  talks.
• 0:49
  REI's
• 0:50
  anniversary
• 0:51
  sale,
• 0:51
  for
• 0:51
  those
• 0:52
  that
• 0:52
  may
• 0:52
  be
• 0:52
  not
• 0:53
  as
• 0:53
  familiar
• 0:53
  with
• 0:53
  it,
• 0:54
  runs
• 0:54
  for
• 0:54
  about
• 0:55
  10
• 0:55
  days
• 0:55
  leading
• 0:55
  up
• 0:55
  to
• 0:56
  Memorial
• 0:56
  Day
• 0:56
  and
• 0:56
  represents
• 0:57
  the
• 0:57
  retailer's
• 0:57
  highest
• 0:58
  traffic
• 0:58
  highest
• 0:58
  sales
• 0:59
  event
• 0:59
  of
• 0:59
  the
• 0:59
  year.
• 1:00
  The
• 1:00
  boycott
• 1:01
  would
• 1:01
  apply
• 1:01
  to
• 1:01
  both
• 1:01
  in
• 1:02
  store
• 1:02
  and
• 1:02
  online
• 1:02
  shopping
• 1:03
  across
• 1:03
  all
• 1:03
  REI
• 1:04
  locations,
• 1:05
  not
• 1:05
  just
• 1:05
  unionized
• 1:06
  stores.
• 1:07
  It
• 1:07
  is
• 1:07
  also
• 1:08
  important
• 1:08
  to
• 1:08
  note,
• 1:09
  I
• 1:09
  should
• 1:09
  say,
• 1:10
  that
• 1:10
  the
• 1:10
  union
• 1:10
  showed
• 1:11
  a
• 1:11
  real
• 1:11
  muscle
• 1:11
  in
• 1:11
  2025
• 1:12
  when
• 1:12
  it
• 1:13
  directed
• 1:13
  115,000
• 1:14
  co
• 1:14
  op
• 1:15
  members
• 1:15
  to
• 1:15
  vote
• 1:16
  down
• 1:16
  all
• 1:16
  three
• 1:16
  of
• 1:17
  REI's
• 1:17
  board
• 1:18
  nominees.
• 1:18
  A
• 1:19
  sign
• 1:19
  that
• 1:19
  customers
• 1:20
  may
• 1:20
  be
• 1:20
  willing
• 1:20
  to
• 1:20
  follow
• 1:21
  the
• 1:21
  workers
• 1:22
  leads
• 1:22
  again.
• 1:23
  Jenna,
• 1:24
  REI
• 1:24
  built
• 1:24
  its
• 1:24
  brand
• 1:25
  on
• 1:25
  progressive
• 1:25
  values
• 1:26
  and
• 1:26
  community
• 1:26
  trust
• 1:27
  and
• 1:27
  now
• 1:27
  it's
• 1:28
  staring
• 1:28
  down
• 1:28
  a
• 1:28
  boycott
• 1:29
  at
• 1:29
  its
• 1:29
  most
• 1:29
  important
• 1:30
  sales
• 1:30
  event.
• 1:30
  Does
• 1:31
  this
• 1:31
  boycott
• 1:31
  have
• 1:32
  real
• 1:32
  teeth?
• 1:33
  And
• 1:33
  what
• 1:33
  does
• 1:33
  the
• 1:33
  situation
• 1:34
  tell
• 1:34
  you
• 1:34
  about
• 1:34
  the
• 1:35
  limits
• 1:35
  of
• 1:35
  values
• 1:36
  based
• 1:36
  retail
• 1:36
  when
• 1:37
  the
• 1:37
  financial
• 1:37
  pressures
• 1:38
  get
• 1:38
  real?
• 1:40
  Yeah,
• 1:41
  I
• 1:41
  think
• 1:41
  this
• 1:41
  one
• 1:41
  has
• 1:42
  real
• 1:42
  teeth
• 1:42
  more
• 1:42
  than
• 1:43
  most
• 1:43
  boycotts.
• 1:44
  Yeah,
• 1:45
  I
• 1:45
  think
• 1:45
  REI's
• 1:45
  customer
• 1:46
  base
• 1:46
  is
• 1:46
  so
• 1:46
  deeply
• 1:47
  values
• 1:47
  driven
• 1:48
  and
• 1:48
  probably
• 1:48
  more
• 1:49
  than
• 1:49
  almost
• 1:49
  any
• 1:49
  other
• 1:49
  retailer.
• 1:50
  And
• 1:50
  when
• 1:51
  you
• 1:51
  build
• 1:51
  a
• 1:51
  brand
• 1:52
  that's
• 1:52
  built
• 1:52
  on
• 1:52
  community
• 1:53
  and
• 1:53
  trust
• 1:53
  and,
• 1:54
  and
• 1:54
  doing
• 1:54
  the
• 1:54
  right
• 1:54
  thing,
• 1:55
  you
• 1:55
  don't
• 1:55
  get
• 1:55
  to
• 1:56
  play
• 1:56
  hardball
• 1:56
  with
• 1:56
  employees
• 1:57
  without
• 1:57
  consequences.
• 1:58
  So
• 1:59
  the
• 1:59
  fact
• 1:59
  that
• 1:59
  members
• 1:59
  are
• 2:00
  already
• 2:00
  rejecting
• 2:01
  board
• 2:01
  nominees
• 2:01
  last
• 2:02
  year
• 2:02
  is
• 2:02
  a
• 2:02
  huge
• 2:03
  signal.
• 2:04
  I
• 2:04
  don't
• 2:04
  think
• 2:04
  that's
• 2:04
  noise.
• 2:05
  That's
• 2:05
  organized,
• 2:06
  values
• 2:06
  aligned
• 2:06
  pushback
• 2:07
  and
• 2:08
  values
• 2:08
  branding
• 2:09
  works
• 2:09
  until
• 2:09
  it
• 2:09
  gets
• 2:10
  tested
• 2:10
  financially.
• 2:10
  And
• 2:11
  I
• 2:11
  think
• 2:11
  that's
• 2:11
  this
• 2:12
  is
• 2:12
  that
• 2:12
  test.
• 2:13
  So
• 2:13
  I
• 2:13
  think
• 2:14
  the
• 2:14
  biggest
• 2:14
  risk
• 2:14
  for
• 2:14
  REI
• 2:15
  is
• 2:15
  losing
• 2:15
  credibility,
• 2:16
  not
• 2:16
  just
• 2:16
  revenue.
• 2:17
  And
• 2:17
  credibility
• 2:17
  is
• 2:18
  way
• 2:18
  harder
• 2:18
  to
• 2:18
  win
• 2:19
  back.
• 2:19
  And
• 2:20
  it's
• 2:20
  not
• 2:20
  just
• 2:20
  a
• 2:20
  labor
• 2:20
  issue,
• 2:21
  it's
• 2:21
  a
• 2:21
  brand
• 2:21
  identity
• 2:22
  crisis
• 2:22
  and
• 2:22
  those
• 2:23
  are
• 2:23
  really
• 2:23
  the
• 2:23
  hardest
• 2:23
  to
• 2:24
  navigate.
• 2:24
  Do
• 2:25
  you
• 2:25
  think
• 2:25
  that
• 2:26
  that
• 2:26
  values
• 2:27
  based
• 2:27
  retailing
• 2:27
  can
• 2:28
  actually
• 2:28
  work
• 2:28
  in
• 2:28
  the
• 2:28
  long
• 2:29
  term
• 2:29
  or
• 2:29
  do
• 2:29
  you
• 2:29
  Think
• 2:29
  it
• 2:29
  always
• 2:30
  will
• 2:30
  come
• 2:30
  under
• 2:30
  financial
• 2:31
  pressure?
• 2:31
  That's
• 2:32
  a
• 2:32
  great
• 2:32
  question.
• 2:32
  I
• 2:33
  think
• 2:33
  it
• 2:33
  can
• 2:33
  work.
• 2:33
  I
• 2:34
  think
• 2:34
  there's
• 2:34
  going
• 2:34
  to
• 2:35
  be
• 2:35
  financial
• 2:35
  pressure
• 2:35
  at
• 2:36
  times.
• 2:36
  Sure.
• 2:37
  If
• 2:37
  you
• 2:37
  navigate
• 2:37
  it
• 2:38
  correctly
• 2:38
  and
• 2:39
  there's
• 2:39
  a
• 2:40
  way
• 2:40
  to
• 2:40
  do
• 2:40
  that.
• 2:40
  It's
• 2:40
  going
• 2:40
  to
• 2:41
  be
• 2:41
  hard
• 2:41
  to
• 2:41
  navigate
• 2:41
  this
• 2:42
  one,
• 2:42
  but
• 2:42
  I
• 2:42
  do
• 2:42
  think
• 2:42
  it
• 2:43
  can
• 2:43
  work.
• 2:43
  I
• 2:43
  think
• 2:43
  it's
• 2:44
  when
• 2:44
  you're
• 2:45
  very
• 2:45
  values
• 2:46
  based,
• 2:46
  you
• 2:46
  get
• 2:46
  such
• 2:46
  a
• 2:47
  loyal
• 2:47
  customer
• 2:47
  base,
• 2:49
  and
• 2:49
  I
• 2:49
  don't
• 2:49
  think
• 2:50
  it's
• 2:51
  always
• 2:51
  guaranteed
• 2:52
  to
• 2:52
  fall
• 2:52
  apart.
• 2:53
  In
• 2:53
  this
• 2:53
  case,
• 2:54
  they're
• 2:54
  just
• 2:54
  going
• 2:54
  to
• 2:54
  have
• 2:54
  to
• 2:54
  navigate
• 2:55
  from
• 2:55
  here.
• 2:56
  Yeah,
• 2:56
  I
• 2:56
  100
• 2:57
  agree.
• 2:57
  That's
• 2:57
  why
• 2:57
  I
• 2:58
  asked
• 2:58
  the
• 2:58
  question
• 2:58
  the
• 2:59
  way
• 2:59
  that
• 2:59
  I
• 2:59
  did,
• 2:59
  because
• 2:59
  I
• 3:00
  wanted
• 3:00
  to
• 3:00
  see
• 3:00
  the
• 3:00
  nuance
• 3:01
  to
• 3:01
  it.
• 3:01
  You
• 3:01
  know,
• 3:01
  I,
• 3:02
  Yeah,
• 3:02
  I
• 3:02
  don't,
• 3:02
  I
• 3:02
  don't
• 3:03
  think
• 3:03
  it's,
• 3:03
  it's,
• 3:03
  it's,
• 3:03
  it's,
• 3:04
  it's
• 3:04
  like
• 3:04
  a
• 3:04
  mutually
• 3:05
  exclusive
• 3:05
  thing.
• 3:05
  I
• 3:05
  think
• 3:05
  you
• 3:06
  can,
• 3:06
  you
• 3:06
  can
• 3:06
  be
• 3:07
  a
• 3:07
  values
• 3:07
  based
• 3:07
  retailer
• 3:08
  and
• 3:08
  not
• 3:08
  face
• 3:08
  the
• 3:08
  financial
• 3:09
  pressures,
• 3:09
  but
• 3:09
  the
• 3:10
  thing
• 3:10
  you
• 3:10
  have
• 3:10
  to
• 3:10
  keep
• 3:10
  in
• 3:10
  mind
• 3:11
  is
• 3:11
  why
• 3:11
  do
• 3:11
  you
• 3:11
  exist
• 3:11
  in
• 3:12
  the,
• 3:12
  in
• 3:12
  the
• 3:12
  first
• 3:13
  place?
• 3:13
  And
• 3:13
  that,
• 3:13
  to
• 3:13
  me,
• 3:14
  is
• 3:14
  where,
• 3:14
  you
• 3:15
  know,
• 3:15
  I
• 3:15
  look
• 3:15
  at
• 3:15
  Rei's
• 3:15
  leadership.
• 3:16
  I
• 3:16
  mean,
• 3:16
  they've
• 3:16
  just,
• 3:17
  I
• 3:17
  don't.
• 3:17
  I.
• 3:18
  To
• 3:18
  me,
• 3:18
  they
• 3:18
  just
• 3:19
  seem
• 3:19
  like
• 3:19
  they're
• 3:19
  screwing
• 3:19
  things
• 3:19
  up
• 3:20
  royally.
• 3:20
  And
• 3:20
  it
• 3:21
  doesn't
• 3:21
  surprise
• 3:21
  me
• 3:21
  one
• 3:22
  bit.
• 3:22
  You
• 3:22
  know,
• 3:23
  this
• 3:23
  is
• 3:23
  where
• 3:23
  I'm
• 3:23
  going
• 3:23
  to
• 3:23
  get
• 3:23
  really
• 3:24
  candid,
• 3:24
  because
• 3:25
  the
• 3:25
  c.
• 3:25
  The
• 3:25
  current
• 3:25
  CEO,
• 3:26
  she
• 3:27
  flamed
• 3:27
  out
• 3:27
  at
• 3:27
  Athleta
• 3:28
  really
• 3:28
  quick.
• 3:28
  Like
• 3:29
  it
• 3:29
  was,
• 3:29
  it
• 3:29
  was
• 3:29
  a
• 3:30
  quick
• 3:30
  tenure
• 3:31
  and
• 3:31
  not
• 3:32
  very
• 3:32
  successful
• 3:33
  tenure.
• 3:33
  And
• 3:34
  now,
• 3:34
  you
• 3:34
  know,
• 3:35
  I
• 3:35
  mean,
• 3:35
  she's
• 3:35
  the
• 3:35
  one
• 3:35
  in
• 3:35
  charge
• 3:36
  now,
• 3:36
  and
• 3:36
  now
• 3:36
  she's
• 3:37
  playing
• 3:37
  chicken,
• 3:37
  essentially
• 3:38
  with
• 3:38
  Rei's
• 3:39
  brand
• 3:39
  reputation.
• 3:40
  That's
• 3:40
  a
• 3:40
  big,
• 3:41
  bold
• 3:41
  move.
• 3:42
  And
• 3:42
  so
• 3:43
  I'm
• 3:44
  with
• 3:44
  you,
• 3:44
  Jenna.
• 3:44
  I
• 3:45
  just
• 3:45
  don't,
• 3:45
  I
• 3:45
  don't
• 3:45
  think
• 3:45
  playing
• 3:46
  hardball,
• 3:46
  which
• 3:47
  is
• 3:47
  what
• 3:47
  it
• 3:47
  seems
• 3:47
  like
• 3:48
  they're
• 3:48
  doing,
• 3:49
  is
• 3:49
  the
• 3:49
  right
• 3:50
  way
• 3:50
  to
• 3:50
  go
• 3:51
  for
• 3:51
  a
• 3:51
  company
• 3:51
  like
• 3:52
  REI
• 3:52
  in
• 3:52
  the
• 3:53
  long
• 3:53
  run.
• 3:53
  Yeah,
• 3:54
  agreed.