The Los Angeles Post
U.S. World Business Lifestyle
Today: March 24, 2025
Today: March 24, 2025

Chipotle may have violated workers' unionization rights, US labor board says

Chipotle Union
August 27, 2024

Chipotle Mexican Grill may have violated federal labor law in its treatment of employees at its only unionized store, according to the National Labor Relations Board.

The board said late Monday that its Detroit regional director found merit to allegations filed against Chipotle by the International Brotherhood of Teamsters. The union alleges that Chipotle unlawfully disciplined an employee in Lansing, Michigan, for engaging in union activity and told employees the fast-food chain couldnโ€™t give them raises because they were unionized.

The regional director dismissed an allegation that Chipotle unlawfully withheld credit card tips from unionized workers. An allegation that Chipotle unlawfully used surveillance methods on its employees is still under investigation.

The NLRB said if Chipotle and the Teamsters donโ€™t reach a settlement, its general counsel could file charges against the company that would be heard by the board's administrative law judge.

Workers at the Lansing Chipotle voted to unionize two years ago, becoming the first of the company's 3,500 locations to do so amid a broader unionization push across the country.

Chief Corporate Affairs Officer Laurie Schalow said in a statement that Chipotle respects workersโ€™ right to organize and has been bargaining in good faith with the Lansing store. Schalow blamed the union for long delays in scheduling bargaining sessions.

But the Teamsters accused Chipotle in a statement of dragging its feet and retaliating against workers to prevent the union from reaching a fair labor agreement.

โ€œThe NLRB made the right call by determining our claims have merit,โ€ the union said.

Chipotle has violated labor law before. Last year, the chain agreed to pay $240,000 to former employees in Augusta, Maine. Chipotle closed the Augusta restaurant after workers there filed a petition for a union election, an action the NLRB ruled was illegal.

Chipotle's labor record could come under increased scrutiny now that its chairman and CEO, Brian Niccol, has been hired by Starbucks. Niccol is set to start work at Starbucks on Sept. 9.

Starbucks also opposed unionization when its workers first voted to unionize at a Buffalo, New York, store in 2022. But since then, more than 460 Starbucks stores have voted to unionize. Starbucks and its union, Workers United, agreed earlier this year to restart talks and try to reach a labor agreement.

Related Articles

Chipotle is raising US prices after promising bigger portions Rivian gets $6.6 billion conditional loan approval to build Georgia EV plant Charlotte airport workers voting on whether to strike during busy Thanksgiving travel week The real reason Starbucks is bringing back self-serve milk and sugar
Share This

Popular

Americas|Asia|Business|Economy

South Korea's Hyundai to unveil $20 billion investment in US, CNBC report says

South Korea's Hyundai to unveil $20 billion investment in US, CNBC report says
Business|Economy|Finance|Political|US

US Treasury department prepares to streamline banking regulators, Semafor reports

US Treasury department prepares to streamline banking regulators, Semafor reports
Business|Economy|Europe|Finance

Air Lease gets $329 million in insurance payout for jets stranded in Russia

Air Lease gets $329 million in insurance payout for jets stranded in Russia
Business|Economy

Canada Feb factory sales most likely down 0.2% - Statscan flash estimate

Canada Feb factory sales most likely down 0.2% - Statscan flash estimate

Economy

Business|Economy|Europe|Political|World

Portuguese, Chinese foreign ministers to hold talks as Trump-EU trade tensions rise

Portuguese, Chinese foreign ministers to hold talks as Trump-EU trade tensions rise
Americas|Business|Economy|Finance

Mexico inflation slows, activity weakens ahead of rate decision

Mexico inflation slows, activity weakens ahead of rate decision
Economy|Europe|MidEast|Political|World

Putin speaks to UAE president on Ukraine and OPEC+

Putin speaks to UAE president on Ukraine and OPEC+
Business|Economy|Finance|Stock Markets

Gold rally attracts investors back to mining stocks after months of outflows

Gold rally attracts investors back to mining stocks after months of outflows