The National Labor Relations Board (NLRB) has found that Chipotle Mexican Grill may have violated federal labor law at its only unionized store in Lansing, Michigan. The NLRB’s Detroit regional director determined there was merit to allegations made by the International Brotherhood of Teamsters, accusing Chipotle of unlawfully disciplining an employee for engaging in union activities and falsely claiming that unionized workers were ineligible for raises. However, the board dismissed a separate allegation that Chipotle withheld credit card tips from unionized employees, and another claim regarding the company's use of surveillance methods is still under investigation.
The NLRB stated that if a settlement is not reached between Chipotle and the Teamsters, its general counsel may file formal charges, which would be heard by the board's administrative law judge. This situation follows a broader trend of unionization efforts across the country, with the Lansing Chipotle being the first of the company's 3,500 locations to unionize two years ago.
Chipotle's Chief Corporate Affairs Officer, Laurie Schalow, responded by affirming the company's respect for workers' right to organize and insisted that Chipotle has been bargaining in good faith. She also blamed the union for delays in scheduling bargaining sessions. However, the Teamsters countered, accusing Chipotle of stalling and retaliating against workers to hinder the union from reaching a fair labor agreement.
This is not the first time Chipotle's labor practices have come under scrutiny. Last year, the company agreed to pay $240,000 to former employees in Augusta, Maine, after closing a restaurant there following a unionization effort—a move the NLRB ruled was illegal.
As Chipotle’s labor issues continue, they may face increased scrutiny, particularly with its chairman and CEO, Brian Niccol, set to join Starbucks on September 9. Niccol's new role comes as Starbucks also grapples with unionization challenges, with over 460 stores having voted to unionize since 2022
The NLRB stated that if a settlement is not reached between Chipotle and the Teamsters, its general counsel may file formal charges, which would be heard by the board's administrative law judge. This situation follows a broader trend of unionization efforts across the country, with the Lansing Chipotle being the first of the company's 3,500 locations to unionize two years ago.
Chipotle's Chief Corporate Affairs Officer, Laurie Schalow, responded by affirming the company's respect for workers' right to organize and insisted that Chipotle has been bargaining in good faith. She also blamed the union for delays in scheduling bargaining sessions. However, the Teamsters countered, accusing Chipotle of stalling and retaliating against workers to hinder the union from reaching a fair labor agreement.
This is not the first time Chipotle's labor practices have come under scrutiny. Last year, the company agreed to pay $240,000 to former employees in Augusta, Maine, after closing a restaurant there following a unionization effort—a move the NLRB ruled was illegal.
As Chipotle’s labor issues continue, they may face increased scrutiny, particularly with its chairman and CEO, Brian Niccol, set to join Starbucks on September 9. Niccol's new role comes as Starbucks also grapples with unionization challenges, with over 460 stores having voted to unionize since 2022