WA bill would require REI co-op to reserve board seats for workers
Some Democrats in Olympia think employees should have more representation on REI's board of directors.
House Bill 1635, sponsored by state Rep. Cindy Ryu, a Democrat from Shoreline, would require any Washington-based consumer cooperative with more than 2,500 employees to reserve two seats on its board of directors for people who work at the co-op.
The bill doesn't mention REI by name, but in an interview with Cascade PBS and KNKX last month, Ryu acknowledged that the bill is directed at the outdoor retail company. She wasn't aware of any other co-ops in Washington it would apply to. (PCC, a large local grocery co-op, has about 1,800 employees, according to a 2024 financial report.)
Unionized workers at the REI store in Bellingham requested the bill. The Bellingham store is one of 11 REI stores nationwide that have voted to unionize since 2022. None of the unions have reached a contract yet with the company.
REI members vote on board candidates in annual elections. Any REI member is able to nominate themselves to run for a board seat, but bylaw changes in the early 2000s gave the existing board final say over who appears on the ballot. The board's bylaws also prohibit employees from running for board seats. Unionized workers say the process has grown undemocratic and left them without a voice.
Several REI employees testified in favor of the bill at a public hearing on Wednesday.
'REI used to take workers' experiences into account when making business decisions and every day people used to serve on the board,' said Andrew Soderquist, an REI employee in Seattle. 'Now there are no meaningful avenues to share our perspectives or give feedback.'
Soderquist added that he was shocked to see the REI board recently sign onto a letter supporting U.S Secretary of the Interior Doug Burgum, a Trump-administration appointee and former governor of North Dakota, who has faced criticism from environmental activists and REI members over his close ties to the fossil fuel industry and a recent order paving the way for oil and natural gas drilling on public lands.
REI responded to members' criticisms about Burgum this week, saying the co-op had signed the letter 'in acknowledgement of his work to champion outdoor recreation, the link between health and nature, and establish the Office of Outdoor Recreation in North Dakota.' The company said it disagreed with his recent order regarding drilling on natural lands, and called on members to sign a petition in opposition.
An REI spokesperson told Cascade PBS and KNKX that the company did not have a comment on HB 1635.
Michael Hutchings, a Washington business lawyer who advises corporations and cooperatives on governance, testified against the bill on Wednesday.
'While this bill may have an admirable goal of elevating employee perspectives to the board, mandating through legislation employee board seats is fundamentally flawed and will create significant problems,' Hutchings said, speaking as an individual.
Hutchings said he's concerned that the bill will set a 'dangerous precedent' by targeting one specific company and sending a message to other businesses that lawmakers in Washington are willing to 'legislatively interfere' in a labor dispute. He also worried that employees who sit on the board would open themselves to conflict-of-interest concerns.
Unionized REI employees recruited two pro-labor candidates to run in this year's board of directors election: Shemona Moreno, a Seattle activist who leads the climate nonprofit 350 Seattle, and Tefere Gebre, the chief program officer at Greenpeace and former AFL-CIO executive vice president.
It's unclear if either of the union-backed candidates will appear on the ballots this spring. An REI spokesperson said the company never received an application from Moreno, even though Moreno shared a screenshot that appears to show her emailing the board her application material before the deadline.
The REI board met on Feb. 3 to decide which self-nominated candidates to allow on the ballot. The candidate slate won't be made public until March 3. In anticipation of Moreno and Gebre being left off the ballot, the REI union is urging members to vote No on whomever the board puts forward.
Moreno testified in favor of the proposed bill on Wednesday.
'I was shocked to learn that REI banned workers from the board and still hasn't reached a fair contract with employees,' Moreno said. 'I believe large co-ops should have workers on their boards to make sure they stay true to their founding values.'
A spokesperson for Rep. Ryu said in an email that if the co-op bill isn't voted out of executive session next week, it is likely dead for the session.
This story was produced as part of the Murrow Local News fellows program and can be republished by other organizations for free under a Creative Commons license. Image rights may vary. Contact editor@knkx.org for image use requests.
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