Key Takeaways:
- The boycott targets REI’s biggest sales event, running May 15–25.
- The union says four years of bargaining have failed to produce a contract.
- REI says it remains committed to negotiating in good faith.
This story was originally published on Shop Eat Surf Outdoor.
Workers and allies of the REI union say they will show up outside REI stores beginning Friday, urging customers to skip the outdoor co-op’s Anniversary Sale as a nationwide boycott runs May 15-25.
The dispute centers on four years of contract negotiations that have yet to produce a final collective bargaining agreement at any of REI’s 11 unionized stores. Both sides claim the other has bargained in bad faith.
New Claims from REI Union
The REI Union, backed by the United Food and Commercial Workers (UFCW) and the Retail, Wholesale and Department Store Union (RWDSU), announced the boycott on May 4. The union says 70,000 REI co-op members have already pledged to sit out the sale.
New details released today by the UFCW make claims about what happened during the most recent round of bargaining in Chicago, which ended April 30. According to the union, REI failed to submit a proposal until the final day of negotiations and did not send its vice president of labor relations or any key decision-maker to the table.
The union says REI’s proposals on that final day included a moratorium prohibiting the REI Union from supporting organizing efforts at other REI stores for the duration of the contract, a non-disparagement agreement that would prevent workers from speaking publicly about working conditions, a mandatory $1 million annual donation from the union to a charitable organization of REI’s choosing, and a six-year contract term, double the length previously discussed.
“My co-workers and I have spent the last four years showing up at the bargaining table for a fair contract, while REI has spent that time attempting to defeat us at every turn,” said Alex Pollitt, a worker at REI’s Bellingham, Wash., store and bargaining committee member, in the UFCW statement. “We’re calling for a nationwide boycott of REI’s Anniversary Sale because REI still refuses to take negotiations seriously and has left us with no other way to make our voices heard.”
Pollitt added: “Our singular goal for the past four years has been to negotiate in good faith with REI and agree on a contract that upholds the values and legacy of this co-op. We have continued to reach out after bargaining ended last month.”
REI’s Position
REI has not yet responded the union’s latest claims about the Chicago meeting. However, in a statement posted to its newsroom on May 2, REI called the boycott “a disappointing move” and said the union’s focus appears to be on undermining the business rather than reaching an agreement.
“It seems the union’s focus is on harming the financial wellbeing of the business, instead of advancing negotiations,” REI said. “The union’s dedication to undermining the business puts jobs, wages, benefits, and future opportunity at risk, and pulls everyone further from the progress our employees deserve.”
REI said it came to the April 28-30 bargaining sessions in Chicago prepared to negotiate in good faith but the parties were unable to reach agreement.
“REI remains ready to negotiate in good faith at the bargaining table — not on social media and not in response to public attacks or pressure campaigns,” the company said. “Every day spent escalating a public conflict is a day not spent at the bargaining table working to reach an agreement that supports our employees and protects the long-term health of the co-op.”
In an earlier statement responding to the union’s impasse allegations, which Shop Eat Surf Outdoor reported in March, REI said it had “approached collective bargaining with care, consistency, and respect for the process” over nearly four years, including working with the union to consolidate from 11 separate bargaining tables into a single national structure.
“At every step, our focus has been on reaching agreements that are fair, sustainable, and in the best interest of our employees and the co-op,” REI said. “REI did not act illegally, nor did we walk away from negotiations. We have shown up consistently, constructively, and in good faith.”
Four Years at the Table
The boycott is the latest escalation in a dispute that dates to 2022, when REI’s SoHo, N.Y., store became the first to unionize. Ten more stores have since followed, with locations in Berkeley, Calif.; Cleveland; Chicago; Boston; Durham, N.C.; Maple Grove, Minn.; Bellingham, Wash.; Castleton, Ind.; Santa Cruz, Calif.; and Greensboro, N.C. A 12th store, in San Diego, has filed for a union election with a vote scheduled for May 27-28, per the UFCW.
Despite reaching 25 tentative agreements over months of negotiations, none of the 11 stores has secured a final collective bargaining agreement, as SESO previously reported.
The situation deteriorated in late February when REI’s attorney notified the UFCW that the two sides were at an impasse. The company then announced it would unilaterally implement the terms of its final contract offer, including cuts to pay and benefits that had been a central sticking point in negotiations.
Those cuts, reported by Shop Eat Surf Outdoor in March, include a reduction in starting wages for new hires effective July 1, 2026, a slower accrual of vacation time, a shift from guaranteed retirement contributions to a company match model, and a realignment of sick days to state-by-state legal minimums. CEO Mary Beth Laughton informed staff of the changes in a February memo, citing ongoing financial pressure.
“We’re still spending more than we bring in and expect continued economic pressure this year,” Laughton said in the memo. “While we’ve taken significant steps already to manage costs, we’re still on the climb toward a healthy financial position.”
The union disputed REI’s impasse declaration as illegal, with UFCW representative Matthew Horn saying no impasse existed and that unilaterally imposing terms violated labor law.
REI Turnaround Backdrop
The labor dispute is playing out as REI works to turnaround its financial results. As reported on Shop Eat Surf Outdoor, the co-op improved its bottom line by $102 million in 2025 under the Peak 28 strategy. Net sales reached $3.54 billion, a slight increase over 2024, while the net loss narrowed to $54.3 million from $156.4 million in 2024 and $311 million in 2023. Gross profit rose 7% year-over-year to $1.52 billion, and the co-op delivered two profitable quarters to close out the year. REI also added one million new members in 2025, bringing total membership to 26 million.
“This past year showed what’s possible when we stay grounded in our Peak 28 strategy and true to who we are,” Laughton said in a statement. “We’re seeing clear signs that our plan is working, strengthening the business now and shaping a stronger future for the co-op.”
To execute the turnaround, Laughton has assembled a new executive team with deep roots in retail and digital commerce, including Chief Commercial Officer Kim Waldmann, who joined in 2026 from Foot Locker, and Chief Merchandising Officer Kristin Shane, hired in 2025.
REI Anniversary Sale – Largest Revenue Event of the Year
The Anniversary Sale runs May 15-25 and features 25% off REI Co-op brand gear and up to 25% off outside brands, per the company’s newsroom. It is REI’s largest revenue event of the year and the moment the union has chosen to apply maximum pressure.
REI has roughly 200 stores nationwide. The 11 unionized locations represent a small fraction of that total, but the boycott’s consumer component, with 70,000 co-op members allegedly pledged to participate, extends its potential reach well beyond those individual stores.
