Press Release: New Bill Would Ensure Washington Co-Ops Are True to Their Democratic Principles, Include Employees On Board

Contact: Kristin Hyde, 206-491-0773, kristin@powerhouse-strategic.com

Washington’s Largest Co-Op, REI, Currently Bans Employees From Its Board

Olympia, WA – Today Washington State Representative Cindy Ryu introduced HB 1635 requiring large Washington businesses designated as consumer cooperatives, also known as co-ops, to include employees on their boards of directors. State Senator Javier Valdez is expected to introduce a companion bill later this week.

Washington is home to many cooperative businesses including the largest consumer co-op in the country, REI, with 24 million members. True co-ops are democratically governed by all of their member-owners. 

HB 1635 will give worker-members a voice in the future of the co-operatives they make possible.

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“Corporations that do business in our state and benefit financially from being seen as ‘consumer owned’ co-ops should live up to co-op ideals of democracy and participation, and that means ensuring employees have a voice in company operations,” said Representative Cindy Ryu, primary sponsor of the measure.

Added Senator Javier Valdez “I am proud to sponsor legislation to give workers a voice and a seat at the table to ensure that retail cooperatives live up to the values they espouse.”

According to the National Cooperative Business Association, true co-ops abide by core principles, the most important being democratic member control over co-op decisions and policies and equal treatment of all members.

Co-op members - which include customers and employees who have paid the co-op membership fee - have an ownership stake in the company and all should have the right to be board candidates. 

But REI does not treat all owner-members equally. REI’s Board changed its rules to ban members who also work at REI from serving on the Board of Directors. In sharp comparison, PCC Markets, Washington’s largest food co-op, allows up to two employees to serve on its board. In 2021, members elected two grocery employees to the PCC board and they were re-elected in 2024. 

Tini Alexander, who works at REI’s Bellingham store as a shop supervisor and is a member of the REI employees’ union, UFCW 3000, said: “The REI Board sets their own compensation, hand-picks who gets to be on our ballots, and bans employees from running for the Board. It’s the people in green vests who have the on-the-ground knowledge, expertise about products and our customers that are important to making smart business decisions. We should have a voice.”

Shemona Moreno, executive director of climate justice organization 350 Seattle, is an REI member and frequent shopper, as well as a nominee for the 2025 REI Board.  “Co-op members have a stake in the wellbeing of the business and in our communities. REI and other co-ops should want the voices of workers who are responsible for making the company successful represented on the board.” 

Because employees are barred from running for the board, Moreno applied to be a candidate for the board of directors and has received more than 3,000 pledges of support from thousands of REI members but has not received confirmation from REI that her name will appear on members’ ballots this Spring.

The Revised Code of Washington (RCW) 23.86 and 24.06 governs the incorporation of cooperative associations and consumer cooperatives, commonly known as “co-ops.” Current law allows co-ops to market themselves as “cooperative” enterprises and reap the goodwill and other financial benefits of doing so. 

Unfortunately, Recreational Equipment Inc. (REI), which is headquartered in Washington state, is not living up to the democratic ideals that are integral to being a cooperative. 

HB 1635 ensures corporate responsibility for cooperative associations and consumer cooperatives by protecting the right of workers to participate in the management of the co-ops by which they are employed. The bill amends RCW 23.86 and 24.06 to require cooperative associations and consumer cooperatives with 2,500 or more employees worldwide to allow up to two workers to serve on the board of directors. 

To avoid conflict of interest and federal (National Labor Relations Act) preemption concerns, the legislation specifically precludes board members who are employees from influencing labor management relations pertaining to non-supervisory, non-managerial employees. 

Learn more at TrueCo-Ops.org, a campaign launched by UFCW 3000, which represents REI Co-Op union members at the Bellingham REI store as well as all PCC Co-Op grocery employees.

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