Chipotle, the popular burrito chain, has reached a settlement with the National Labor Relations Board to pay $240,000 to 24 workers. The workers had filed a complaint accusing Chipotle of closing its Augusta, Maine store in an effort to prevent a union drive. As part of the settlement, Chipotle will also provide preferential treatment to the affected workers in rehiring for a year and will post notices about workers’ rights at 40 Chipotle stores in New England.
The settlement has been hailed as a “huge win” by Chipotle United, the group representing workers from the Augusta store. They emphasized that this settlement sends a clear message that union busting will not be tolerated. Chipotle’s chief corporate affairs officer, Laurie Schalow, stated that the store closure was due to staffing and other issues, not because of any union activities.
The closure of the Augusta store occurred last July after workers filed for a union election. The union contended that it was an act of retaliation, while Chipotle cited staffing issues as the reason. The labor board’s general counsel investigated the allegations and found merit in them.
Under U.S. labor law, an employer cannot legally close an individual worksite because of union activity, although it is permissible to shut down the entire business to avoid a union. However, several high-profile organizing campaigns in recent years have involved store closures that workers believe were retaliatory. Starbucks, for example, has faced NLRB complaints regarding store closures in response to union efforts.
While forcing a company to reopen a store is challenging, in practice, settlements like the one reached in the Chipotle case often involve compensating workers for their lost jobs. In this case, the $240,000 sum covers back pay and other financial harm suffered by the workers. The NLRB’s current general counsel, Jennifer Abruzzo, aims to ensure that workers are compensated not only for lost wages but also for other related expenses, such as medical costs or debt incurred due to job loss.
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