A Message to our Customers:
We would like to inform our community of changes Artifact is implementing as the result of the 3rd party DEI internal investigation results, while taking into consideration the demands and experiences that our employees have brought forward.
For a more detailed account of happenings, as well a timeline of events and communication, please visit the links below. As we make progress towards the goals and objectives we have set forth, we will update this page and its links to provide accountability and transparency on our growth. Now is the time for Artifact to implement the changes we have set forth.
We sincerely thank our community of customers and consignors for standing by as we've been navigating this internal issue. All comments or questions can be sent to community@artifactpdx.com.
Sincerely,
Leah Meijer
Founder of Artifact
To learn more, please visit the links below:
FAQ
Q: Were employees fired when you closed the store?
A: No. All employees are still fully employed by Artifact.
Q: Did you lock out employees during the closure?
A: No. Employees were invited to the store to work or to meet with us at the store. No one was locked out.
Q: The protesting employees filed a claim with the NLRB claiming that you locked employees out, what was the ruling?
A: We never locked out any employees. We submitted our proof to the NLRB and their official ruling on the case can be found (here).
Q: Did you pay employees during your closure?
A: We paid any employees who chose to work during our closure. Employees were able to work as many hours as they chose. A few employees did end up working their full time schedule.
Q: Did you continue to cover health insurance coverage for all employees regardless of the number of hours worked?
A: Yes. We paid for everyone’s health insurance coverage through March 31st regardless of the number of hours worked.
Q: You were accused of using PPP funds to purchase motorcycles, is that true?
A: No. All PPP money was used to cover payroll, rent, utilities, and healthcare costs. The owners do own motorcycles that were purchased in 2018 from Craigslist.
About Artifact employment
About Artifact
We work with our employees and hundreds of consignors to provide contemporary and vintage clothing, accessories, furniture, and home décor to our community at a reasonable price.
Since our founding, Artifact has been a proud and active member of our Southeast Division Street community, investing and giving back to the community in a variety of ways, including helping to raise thousands of dollars for community non-profits through our popular Funday Flea markets, where all items are sold for just $1.
While we are a small business with a staff size of less than a dozen people, our goal has been to provide good wages; performance-based incentives; a safe, productive, and enjoyable workplace; and healthcare benefits for employees and even their pets.
We also serve as a resource for hundreds of consignors wanting to make their goods available to the public, earn extra income and support their design/creative lifestyle.
How we support employees now and into the future:
Our current benefit package included:
Employer sponsored medical and dental
Employer sponsored pet insurance
Up to 2 weeks of PTO
5 hours per month of volunteered paid time off
Matched 401K retirement plan
Performance based bonuses (no longer, see below)
Employee perks
Further action items we will be taking as we move forward:
Pay equity analysis and increase of our starting wage
End all discretionary bonuses and focus on more competitive wages instead
Staff roles defined surrounding window displays and “creative project work”
Reviewing our pay standards and continuing to ensure that they are inline with the Oregon Equal Pay Act Compliance Guide
Continue our DEI training
Reviewing our handbook and systems to ensure understanding of our policies by employees
Creating an official protocol around culturally sensitive objects
2022 Labor Dispute Details
In late February of 2022, Artifact terminated a Black employee. We cannot discuss the termination details of any employee in accordance with our policies and because that is a confidential human resources matter. Upon letting this employee go, our employees raised issues of microaggressions and bias. Some of our staff disagreed with our decision to let this employee go and another employee resigned accusing Artifact of being a racist organization without citing any specifics.
Even though our termination decision had nothing to do with race, Artifact takes claims of racism and bias very seriously and is committed to equality and equity. We have strong Non-Discrimination, Harassment and Discrimination, and Harassment and Discrimination Reporting Policies in our company handbook. With the seriousness of the accusations at hand, being short staffed, and anticipating an extensive investigation process, Artifact decided to close its doors for two weeks, Feb. 26th - Mar. 13th, to conduct an official internal audit and investigation so that employees could have a neutral 3rd party to share their experiences with, as well as undergo storewide DEI training.
During our 2-week store closure, no employees were fired or let go. All employees were, and still are, employed at Artifact. During the store closure, we offered all employees full hours for projects in-store or at home. The majority of employees chose not to accept any hours.
While closing the store was the best action for Artifact, we recognize that an employee staff meeting prior to closing would have been helpful. We understand that regardless of work hours, this move was abrupt and disappointing for some employees.
Three days after reopening the store some employees presented us with a list of demands in person. We were told to meet all of the demands immediately or else they would begin striking. Since the beginning of the strike Artifact has continued to offer hours to all employees and has been very willing to talk with employees about the concerns they have brought forward.
What now?
Recently, we attempted to have a facilitated dialogue with our employees regarding issues and concerns they have raised. Artifact paid for and provided the time and space for a professionally facilitated meeting with Hyland Solutions, who was mutually agreed upon by both parties. Hyland Solutions’ professional decision was to first have a facilitated meeting to then determine if legally binding mediation was necessary. Less than 24hrs prior to the meeting, Artifact employees decided that they would not show up to the meeting without being allowed to invite a ‘witness/observer’ of their choosing to attend the meeting. None of the staff with grievances attended the meeting. The decision of Artifact leadership to not agree to any 3rd parties -from either side- is that this meeting and dialogue is between its staff and the leadership team, and no one else, specifically 3rd parties whose motives and intentions are unknown. It was the role of the agreed upon professional mediator to create the safe space that both parties requested.
Artifact has since evaluated its practices and committed to implement changes taking into consideration the demands and experiences of our employees and the results of the 3rd party DEI internal investigation. We refuse to yield to tactics of harassment, coercion, misinformation/defamation, and the spread of lies and half-truths. More than anything, we are hoping to find resolution in a serious, amicable and constructive manner that follows the due process.
DEI Investigation Report
As challenging as it is, we need to live by actions that are transformative and honest, to focus our energies on education, and when necessary, change. The report and recommendations from Seattle-based Diversity University https://diversity-u.com/ are now complete.
This notice then, is the basis for improvements and changes Artifact is making and our committed timeline for these changes.
Diversity University Methodology
In Depth interviews with employees was conducted by Diversity University founder Megan Lutes, March 2022. Simultaneously, she performed a comprehensive audit of Artifact employee records, and Artifacts policies. Ms. Lutes was free to define the scope and interviews required. She interviewed employees who made the initial complaints alleging discrimination, and who made the choice to speak with her. She did not feel that it was necessary to speak with other employees.
Diversity University Findings on concerns raised by employees (verbatim)
Disparate/inconsistent or discriminatory actions (discrepancies in pay, termination of employment, inconsistencies in discipline) due to race; no sufficient evidence was found to validate race as a determining factor in any decision. There is evidence that both POC and white employees were written up for similar behaviors.
With regard to pay disparities, there is no correlation with pay and race that Diversity University could find. It would benefit the store to do a full audit of their pay practices and make sure they are being consistent, including when minimum wage changes to make sure existing employees may proportionately get the right amount of pay.
With regard to working off the clock {i.e. dropping off receipts in a filing cabinet, turning off lights, locking the door, etc.}, I did find that some education should be had regarding non-exempt employee status.
With regard to cultural insensitivities, it seems that inherently in this type of business there will be cultural artifacts. It sounds like there is a solid system in place to attempt to vet these and that employees themselves have a large amount of control over what they buy.
Diversity University Recommendations
Artifact will act and implement all of Diversity University recommendations going forward. We are listing action items and our timelines for completion.
• Refresh on {company} objective standards for reviewing disciplinary or termination decisions.
To be updated in Artifact employee HR materials - To be completed on Q2
• Clarify policies on pay and training on non-exempt requirements.
To be updated in Artifact employee HR materials - To be completed on Q2
• Conduct full pay audit and draft and establish pay policies.
Artifact will bring an external auditor to perform a Pay Equity Analysis to ensure fair pay rates and compliance with Oregon and federal pay laws - To be completed, end of Q2
• Conduct microaggression training or unconscious bias training.
Managers will be required to further partake on DEI training and will meet periodically with a DEI specialist to review and audit practices and policies - To be completed on Q2 and ongoing
All new hires will be required to participate in DEI training - Ongoing
All employees will be required to participate in annual DEI refreshers - Annually
We will immediately create a “communication board” for employees on policies and organizational changes as they occur. This will be placed in the employee break room used by all workers.
Sincerely,
Leah
Communication History
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Employee demands & response
Employee Demands
Pay <Redacted> and <Redacted> severance pay or back pay for the months they were underpaid and overworked
Pay staff back pay for the two weeks closed
Display labor laws of Oregon and add to written store policy
Put anti-discrimination rules into written store policy
Raise the rate of pay for new hires to $17.50
Establish a clear pay scale with clear guidelines for raises
Standardize spot bonus amounts with clear guidelines for what performance indicators earn bonuses
Equal pay for equal work in terms of the conditions we are laying out
Artistic ownership of — and therefore credit for — all images captured for social media and curated window displays by employees
Obtain consent from all employees to be surveilled and any subsequent moving of cameras (especially back of house areas)
A “workers before customers” approach for store policy enforcement (ex: mask mandate, unsafe/threatening customers, etc.)
Clarify and expand guidelines for fireable offenses
Our Response to Staff
Artifact Staff,
First, we would like to acknowledge employee feelings caused by closing the store Friday February 26th through Saturday March 12th. While this was the best action for Artifact, we recognize that an employee staff meeting prior to closing would have been helpful. The management team at Artifact did offer work alternatives and full hours to ease financial stress. We understand that regardless of work hours, this move was abrupt and disappointing.
We would like to inform you of some changes we are implementing as the result of the 3rd party DEI internal investigation while taking into consideration the demands and experiences that some of you have brought forward. Please know that we are committed to moving forward with ongoing education and awareness training as recommended by the Diversity University report (results distributed April 7th). It is important that all of our employees, those who identify as BIPOC and other diverse and self-identified communities, feel safe while working at Artifact. We will continue to learn, grow, and implement changes to ensure equitable employee wellbeing.
The current steps that we will be taking include:
Managers will be required to further partake in DEI training and will meet periodically with a DEI specialist to review and audit practices and policies.
All new hires will be required to participate in DEI training.
All employees will be required to participate in annual DEI refreshers.
Artifact will bring an external auditor to perform a Pay Equity Analysis to ensure fair pay rates and compliance with Oregon and federal pay laws.
Compliance
We have relocated all posters required by State and Federal agencies and these materials are now located on the North wall of the break room.
Artifact has an Anti-Discrimination, Harassment and Discrimination, and Harassment and Discrimination Reporting policy in its handbook. The handbook and all store policies can be found in the common use hello drive accessible from all store computers.
We will now make the handbook more readily available by having a permanent physical copy in the break room.
Artifact will inform employees of future revisions. Notice of revisions will also be physically posted on the North wall of the break room.
Equitable pay - Artifact’s starting pay for entry level positions is currently $15/hour for the initial 3-month trial probationary period. Pay may be adjusted after successfully completing probation.
Artifact’s current average wage is $16.75. We will be increasing our starting wage to $17/hr and adjust up all current employees. We understand that this may not be a competitive wage for some and that other businesses may pay more, but our pay complies with the law, and everyone is free to choose where they apply to and what pay they accept upon starting a new job.
Artifact will be hiring a 3rd party to update our pay equity analysis and we will adhere to the advice of the pay equity analysis to ensure we are paying fairly across the organization and in accordance with the pay equity law of Oregon.
Artifact will no longer give discretionary bonuses. Instead, we will adhere to the competitive wage systems based on the recommendations of the pay equity analysis.
Creative credit for window displays and social media
We will display fixed signage in the shop window crediting employees for their creative work on their current featured window display. It is up to the employee if they would like to feature their Instagram handle or just their name on signage.
Artifact will also credit all creatives on Artifact’s Tiktok videos made by employees.
Please be advised that all Artifact’s current and future positions regarding employee creative and other work efforts complies with “Work for Hire” labor laws and regulations.
Security cameras - The security cameras in the store are for the safety of our staff and customers, and to protect everyone against theft and property destruction. Video surveillance signs are posted throughout the store. The only private spaces unrecorded in the store are in the bathroom and dressing rooms.
The security camera in the break room is there to monitor sensitive equipment and to monitor theft from employee lockers. Theft from employee lockers has occurred in the past.
We will provide notice if cameras require relocation or the mounting of additional cameras. All employees will now be required to sign a document acknowledging the use of security cameras.
Workers before customers, customers before workers policy - At Artifact, we have no such policy. If conflicts between customers and workers arise, we will address each situation individually and fairly. As we have done in the past, we will remove any customer who threatens the safety or wellbeing of our employees. Moving forward, management will immediately institute the following to reinforce our commitment to a safe and healthy environment for workers and customers:
If a situation with a customer arises, we will engage in a documented debriefing from the employee's experience of the situation.
If necessary, immediate time off the floor will be available for each employee to assess the situation. Please report your assessment to management.
If an employee's experience merits follow-up, counsel will be scheduled with a conflict resolution coach.
Disciplinary policy - Artifact is an at-will employer, as are most Oregon employers. We are currently working with a labor law expert to revise, improve and clarify the Artifact disciplinary policy. Our intent is that the revised policy is more defined, expanded, and comprehensive. This revision includes language that is specific to individuals with supervisory responsibilities. Revisions will include:
Further definition of the expectations and responsibility of supervisory employees;
Definition of the parameters and limitations of their authority as to ensure fair and unbiased treatment of junior teammates.
All workers will be notified when this revision is complete and added to our HR materials.
A permanent physical copy will be posted to the break room and all employees will be notified.
Cultural artifacts
We are in the process of writing and formalizing our current protocol around cultural artifacts. This will become official store policy.
Please remember, our current protocol is to always pull any items from the floor that are deemed culturally insensitive.
We invite feedback on these items and implement a process that includes primary research. Research findings on articles of significance are communicated to the buying team.
Moving forward we will provide all buyers with cultural sensitivity and awareness education from a qualified expert to heighten our current protocol/policy.
We await the ruling from the NLRB charge that some of you filed against Artifact. We will adhere to the results of the ruling. With regard to the request to have a facilitator and allow a “community witness,” Artifact will not be providing or paying for that request. Artifact paid for staff and leadership to meet with a mutually agreed upon professional facilitator, Hyland Solutions, on 3/30/22. Mariann Hyland of Hyland Solutions, is a “safe party.” Hyland Solutions’ professional decision was to first have a facilitated meeting to then determine if legally binding mediation was necessary. Less than 24hrs before the scheduled meeting on 3/30/22 the staff decided they would not participate.
We refuse to yield to tactics of harassment, coercion, misinformation/defamation, and the spread of lies and half truths. More than anything, we are hoping to find resolution in a serious, amicable and constructive manner that follows the due process.
This memo directly addresses your concerns, and the results of the investigation. It specifies our resolutions to the issues you have brought forward in the most realistic and constructive format available to Artifact.
If you'd like to schedule a 1:1 meeting with myself or Luis to talk about your experience or share any feedback on any of the changes above, please let us know as soon as possible.
Sincerely,
Leah