Chipotle Mexican Grill is under scrutiny by the National Labor Relations Board (NLRB) for potentially violating federal labor laws at its only unionized store, according to a recent announcement. The NLRB’s Detroit regional director found merit in allegations from the International Brotherhood of Teamsters, which claimed that the company unlawfully disciplined a worker in Lansing, Michigan, for union activities and communicated that raises could not be given due to the store’s union status. The regional director also dismissed claims related to the withholding of credit card tips from unionized employees. An investigation into allegations of illegal surveillance of employees is still ongoing.
If Chipotle and the Teamsters do not reach a settlement, the NLRB’s general counsel may file formal charges that will be reviewed by an administrative law judge.
The Lansing Chipotle became the company’s first unionized location two years ago amid a broader wave of unionization efforts across the U.S. Despite this, Chief Corporate Affairs Officer Laurie Schalow stated that Chipotle respects workers’ right to organize and has been negotiating in good faith with the Lansing store. Schalow attributed delays in bargaining sessions to the union’s scheduling issues. In contrast, the Teamsters have accused Chipotle of delaying negotiations and retaliating against workers to stymie the union’s progress.
In a related development, Chipotle’s labor practices are drawing increased attention as the company’s chairman and CEO, Brian Niccol, is set to join Starbucks in September. Niccol’s new role at Starbucks could further highlight Chipotle’s labor issues, particularly since Starbucks has also faced significant scrutiny over its handling of unionization efforts. Starbucks and its union, Workers United, have recently resumed negotiations in an attempt to finalize a labor agreement following a surge in store unionizations.
This scrutiny follows a previous incident where Chipotle was found to have violated labor laws last year. The company paid $240,000 to former employees in Augusta, Maine, after illegally closing a restaurant in response to a union election petition
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