2006 Stewardship Report: People - Healthcare Benefits to Workers

REI has long been recognized for having one of the most accessible medical benefit packages in the retail industry.

In 2006 we extended healthcare benefits to all of our part-time employees and their families regardless of the number of hours they worked. This move was recognized as leading edge among employers in the country. Other U.S. companies offer benefits to part-time employees, but none have extended programs with an employer subsidy to staff that work less than 20 hours.

Known internally as the PaTH (Part-Time Healthcare) plan, employees are eligible to enroll in the program 30 days from their hire date. The plan offers medical, dental and life coverage, which can be purchased in combination or separately. REI employees who voluntarily enroll in the plan pay a subsidized medical/dental monthly premium of approximately $40 with an annual $150 deductible. The plan includes annual coverage for routine health services such as doctor's office visits and annual exams, as well as hospital care up to $10,000 and a prescription drug benefit. They receive access to the same network of healthcare professionals as their full-time REI colleagues.

REI's part-time staff receives a medical benefit package if they work a rolling average of 20 hours per week over a six-month period. PaTH is an added benefit for our part-time workforce, including employees who work for the company seasonally or on a temporary basis.

In 2006 the average age of employees participating in the PaTH program was 32 years. Of the 4,500+ part-time employees that were eligible for the healthcare program, nearly 1,200 had enrolled in the program by year-end.

2006 REI Stewardship Report