About two weeks after earning wide praise for his decision not to open his company's doors on Black Friday, Jerry Stritzke, REI's CEO, fielded questions via an "Ask Me Anything" event on Reddit. Unfortunately, largely negative comments came back.
The executive expected the discussion to focus the Black Friday closure, with the company encouraging people instead to get outdoors. However, after spending two hours on Nov. 10 answering questions, the freewheeling social media site was flooded overnight with complaints from current and former REI employees on company policies.
The complaints focused on pay, hours and benefits as well as the company's push to encourage membership sales to supports its co-op structure.
One employee complained, for example, that she wasn't promoted and had her hours cut due to subpar membership sales, despite superlative performance reviews in other areas. Mr. Stritzke the following day answered that he was surprised by the strong emphasis on membership sales when he joined REI two years ago. The company "may have lost sight of the bigger picture" and he stressed performance should be measured on "deep outdoor knowledge and customer service."
Jerry Stritzke, CEO, REI - Image: REI
The debate over compensation included one comment that the retailer should balance its donations to public parks and trails with room for higher pay standards. Mr. Stritzke said REI will pay employees $15 per hour in some markets, although pay is based on the local cost of living. Wrote Mr. Stritzke, "I think we will strike a good balance between our full time and part time employees but the reality is that it's not an easy problem to solve and you need to factor in healthcare and other benefits."
The CEO vowed to look into both membership and pay issues, although many forum respondents remained skeptical about any positive outcomes.
The thread drew over 4,500 comments and widespread media coverage.
Still, Mr. Stritzke appeared unfazed by the largely negative comments about labor relations with his company, which has regularly ranked as one of America's best companies to work for.
In an interview with The New York Times for its "Workspaces" section, Mr. Stritzke pointed to his Reddit Ask Me Anything participation as an example of how REI remains committed to an "open dialogue" with its employees and consumers. "I believe in stepping up, listening to all sides and taking action," said Mr. Stritzke. "Transparent leadership is the only way to go in a transparent age."
Editor's note: REI issued a press release today with news that it has received nearly one million endorsements for its #OptOutside campaign. More than 150 companies, non-profits and agencies that support state and national parks have joined with the company in encouraging people to spend Black Friday in the great outdoors.
- I am Jerry Stritzke, CEO of REI and we're closing all of our stores on Black Friday. Ask me anything! - Reddit
- REI's CEO faces employee revolt during Reddit question-and-answer session - The Oregonian
- Jerry Stritzke of REI: If You Can't Be Outside, Bring the Outside In - The New York Times (tiered sub.)
- Expecting Warm Embrace, REI Chief Is Harangued in Reddit Forum - The New York Times (tiered sub.)
- REI's CEO faces angry workers on Reddit - CNN