Chipotle agrees to pay ex-employees after closing store that tried to unionize

Chipotle agreed to pay ex-employees after closing stores that try to unionize

Chipotle Mexican Grill will pay the former staff members of an Augusta, Maine restaurant that the business closed after the staff members attempted to organize $240,000 in salary and back pay. For each of the impacted employees, the settlement compensation, which is based on pay rates, typical hours worked, and seniority, will range from $5,800 to more than $21,000.

“This isn’t just a victory for Chipotle United. It’s a win for food service workers across the country,” said Brandi McNease, a former Augusta Chipotle employee and lead organizer of the Chipotle United union. “It sends a message to corporations that shutting down a store and blackballing workers didn’t work for Chipotle and it won’t work for them either.”

Chipotle has refuted the claim that union busting was a factor in its decision to close the Augusta site

Chipotle has refuted the claim that union-busting was a factor in its decision to close the Augusta site in July, despite the fact that the company did not admit wrongdoing as part of the settlement. The company claimed that difficulty hiring employees was the reason for the closure at the time. But, the National Labor Relations Board, which is responsible for managing labor relations at the majority of US companies, filed a complaint in November stating that the closing was an attempt to thwart the union organizing.

“We settled this case not because we did anything wrong, but because the time, energy, and cost to litigate would have far outweighed the settlement agreement,” the chain said in a statement Monday. “We respect our employees’ rights to organize under the National Labor Relations Act.”

McNease told CNN on Monday, however, that she believes “there was no good reason for them to shut down that store.”

The former Augusta employees will be given preference when hiring at other Chipotle restaurants in Maine as part of the settlement. Despite the fact that Augusta’s closest Chipotle is now more than 30 miles away, McNease said she and a few of her former coworkers intend to carpool to other restaurants.

“I know two or three workers have moved onto other jobs, but most of us just want to work with each other again,” she said.

In Lansing, Michigan, a second Chipotle establishment has chosen to become a unionized workplace. Although the New York City Chipotle has not yet requested a formal union ballot supervised by the NLRB, employees there have announced an organizing campaign and staged one-day strikes.

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