This week in Santa Cruz County business: REI employees’ union push, salmon decision day and East Cliff Village plans

Each week, we’ll be taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Santa Cruz REI employees to vote on unionizing

Workers at the Santa Cruz REI store will vote later this month on whether to unionize. 

Jim Araby, director of strategy campaigns for United Food & Commercial Workers (UFCW) Union Local 5, said employees of the outdoor sports and camping retailer have filed their intent with the National Labor Relations Board. Next, the store’s 53 employees will vote April 18 on whether to proceed. If the majority of employees vote in favor of unionization, negotiations with REI management in California would start after that. 

REI’s Santa Cruz store, which opened in the former Toys ‘R’ Us location on Commercial Way in unincorporated Santa Cruz in late 2021, would be the second REI store in the Bay Area to unionize and the 10th store nationally. 

The move comes amid a growing national campaign calling on REI for better working conditions. And last fall, the retailer was accused of violating U.S. labor laws at eight stores that had unionized. New York City was the first REI store to unionize, back in 2022. There’s also been growing support for unionization locally in the past few years, with one Santa Cruz Starbucks store leading the way for the rest of California. The Starbucks store on Ocean and Water streets was quickly followed by two other area locations.

Araby said that a big motivation for unionizing at the Santa Cruz REI store is to establish guaranteed minimum hours for part-time employees. Only about 30% of the Santa Cruz store’s employees are full-time, and about a third of employees are students. They’re also seeking improved access to benefits and expanded parity in benefits for full-time and part-time employees. He says REI’s progressive reputation and mission have driven a lot of people to join the company, but its labor practices don’t always align with that reputation. 

“The biggest thing is to have a voice at the job,” said Araby.

Local 5 also represents workers at the REI store in Berkeley, and Araby said the union hopes the two stores can bargain together. 

A spokesperson for REI acknowledged that the company had been notified of the union’s intent by the National Labor Relations Board.

“We will fully support the petition process in Santa Cruz, including the right of every employee to vote for or against union representation,” the company said in an emailed statement. “It’s critical that every employee in Santa Cruz has the time and information they need to make an informed decision.”

Once employees vote to unionize, it can take a year or more to reach a first contract, depending on various factors, according to previous analysis by Bloomberg Law. 

Federal decision on 2024 California salmon season to be made Wednesday

The Pacific Fishery Management Council is expected to release its final decision for the upcoming California salmon season Wednesday afternoon.  Last month, the federal management agency introduced three proposed options for the recreational and commercial fishing seasons, one of which would cancel the season completely for a second year in a row. This week, the council is meeting to review the options and make a determination. 

Even if the council proceeds with allowing limited salmon fishing options this year, local fishermen say it still leaves them without viable options. 

In other fishing news, Monday marked the last day of commercial Dungeness crab fishing season. The season was closed more than a month ahead of schedule due to concerns over whale entanglements in light of humpback whale migration activity.

Koenig: No current plans for mixed-use development at East Cliff Village Shopping Center

The county supervisor whose jurisdiction includes the Live Oak farmers market said he’s submitted a petition for more than 200 constituents asking Swenson Builders to reconsider the market’s lease. Santa Cruz Community Farmers’ Markets leaders announced last month they were seeking a new spot after lease talks failed for the current location in the East Cliff Village Shopping Center. The market was granted a lease extension but must stop operating there at the end of April.

County Supervisor Manu Koenig said that while the county doesn’t have a direct role in the lease negotiations, he’s working on the sidelines to support talks and dispel misunderstandings. That includes looking into rumors that Swenson Builders planned to immediately develop the shopping plaza, as many community members speculated amid the news that the farmers market was losing its home. Koenig says there are currently no such proposals submitted to the county planning commission. Swenson had filed applications previously calling for an extensive renovation that would have included new seating areas and, potentially, apartments. The most recent such permit was withdrawn in September. The only current permits with the county are for work on the mall’s roof, Koenig wrote in a newsletter to constituents this week.

ICYMI: An 18-story building proposed downtown promises to be a project “Santa Cruz has never seen”

More details have been released about a proposed apartment building downtown that, if approved, would be the tallest building in the county. Local building and development company Workbench has proposed a new residential structure for North Pacific Avenue that would replace dive bar The Rush Inn and the old Santa Cruz County Bank building. Christopher Neeley got the scoop last week.

Ch-ch-changes: Openings, closings and other developments

• Feedback sought on downtown Santa Cruz farmers market: The downtown Santa Cruz farmers market will be moving from its current location at the corner of Cedar and Lincoln streets in 2025. As market and city leaders evaluate potential locations and concepts, they’re asking for community input in a survey open until April 24. Add your input here.

• Longtime Aptos restaurant gets new owners, new name: The owners of Palapas Restaurant Y Cantina have sold the Seascape Village restaurant after 34 years in business. The last day in service for Palapas will be May 18. New owners Brandon Smittcamp and Trent Lidgey, who operate restaurants in Fresno and Campbell, respectively, plan to reopen the restaurant as Dos Pescados. 
• Capitola seeks input for Capitola Wharf: Capitola city officials are asking the public to weigh in on preferences for temporary activities at the wharf while a long-term plan is being developed, in the wake of January 2023’s damaging storms. The city plans to reopen the wharf in the fall, but there will be no permanent structures then, following the demolition of the buildings housing the Wharf House Restaurant and Capitola Boat and Bait. 

Got hires, promotions or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Looking at the numbers

• 12: That’s where UC Santa Cruz ranked among the top 20 public colleges and universities for high-paying tech and finance jobs, according to findings from The Wall Street Journal and The Burning Glass Institute. In the first 10 years after graduation, UC Santa Cruz alumni who go into tech make an average of $136,978. That’s $14,000 above the median annual salary for graduates in this field. California schools accounted for more than half of the top 20, with UC Berkeley in the top slot.

Save the date

• Thursday, April 11: The Santa Cruz County Chamber of Commerce will host its annual event honoring individuals, businesses and organizations for their contributions to the community. “A Night of Stars” takes place from 5:30 to 9 p.m. at the Cocoanut Grove Ballroom at the Santa Cruz Beach Boardwalk. Register here.
• Thursday, April 25: The Pajaro Valley Chamber of Commerce will host an agricultural expo and job fair from 4 to 7 p.m. at the Santa Cruz County Fairgrounds. Details here.
• Friday, May 3: The 2024 Santa Cruz County Small Business Summit will bring together more than 200 local entrepreneurs and small business owners for a day of networking, presentations and educational sessions. The event will be held at Cabrillo College’s Samper Recital Hall. More details and registration here.
• Friday, May 3: The Monterey Bay Economic Partnership will host its 2024 Regional Economic Outlook from 8 a.m. to 1 p.m., bringing together a slate of speakers to discuss the economic landscape for Monterey, Santa Cruz and San Benito counties, including Santa Cruz County Administrative Officer Carlos Palacios. The event will be held at the Embassy Suites in Monterey. Register here.
• Friday, May 10: The Scotts Valley Chamber of Commerce will host its annual awards reception at Roaring Camp Railroads’ Bret Harte Hall from 5 to 10 p.m. More info here.
• Thursday, May 16: The Santa Cruz County Chamber of Commerce hosts a ribbon-cutting for the Santa Cruz Community Credit Union’s new branch at 55 River St. in Santa Cruz, from 5 to 7 p.m. More details here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

Business news worth reading

• A first look at Joby’s eVTOL future (Flying magazine)
• PG&E CEO, other utility execs land higher compensation (San Jose Mercury News)
• Small businesses have Now Hiring signs up – whether they need workers or not (Marketplace)

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