Chipotle Mexican Grill is facing allegations of violating federal labor law at its only unionized location, according to the National Labor Relations Board. The board’s Detroit regional director has found merit in complaints filed by the International Brotherhood of Teamsters against Chipotle. The union claims that Chipotle in Lansing, Michigan, unlawfully disciplined an employee for engaging in union activities and informed workers that they would not receive raises due to unionization.
One allegation regarding Chipotle withholding credit card tips from unionized workers was dismissed by the regional director. However, an investigation is ongoing regarding claims that Chipotle used surveillance on its employees without authorization.
If Chipotle fails to reach a settlement with the Teamsters, the NLRB’s general counsel could bring charges against the company that would be reviewed by an administrative law judge.
Employees at the Lansing Chipotle voted to unionize two years ago, marking the first unionization at any of Chipotle’s 3,500 locations as part of a growing unionization trend across the U.S.
Chipotle’s Chief Corporate Affairs Officer, Laurie Schalow, stated that the company respects workers’ rights to organize and has been negotiating in good faith with the Lansing store. However, the Teamsters have accused Chipotle of delaying negotiations and retaliating against workers to hinder a fair labor agreement.
The Teamsters praised the NLRB for acknowledging the validity of their claims against Chipotle. The fast-food chain has a history of labor law violations, including a case in Augusta, Maine, where it agreed to pay $240,000 to former employees after closing a restaurant following unionization efforts.
Chipotle’s labor practices may attract more attention now that its chairman and CEO, Brian Niccol, is moving to Starbucks. Niccol’s transition to Starbucks comes amid the coffee chain’s own recent encounters with unionization efforts, including a store in Buffalo, New York, that voted to unionize in 2022, with over 460 Starbucks locations following suit. Starbucks and its union, Workers United, have restarted discussions to reach a labor agreement earlier this year.
