Home » US business news • US Employment News » Chipotle to pay $240,000 to ex-employees in Maine who tried to unionize
Chipotle to pay $240,000 to ex-employees in Maine who tried to unionize
https://www.whatjobs.com/news/usa/us-business-news/chipotle-to-pay-240000-to-ex-employees-in-maine-who-tried-to-unionize
By Nithya Bose in US business news, posted March 28, 2023
Chipotle Mexican Grill is to pay $240,000 to former employees in Maine after it closed a store where workers were trying to unionize.
In late June last year, employees at the Chipotle restaurant in Augusta, Maine, submitted a petition to unionize under Chipotle United, the first-ever movement at the chain.
But within a month, Chipotle shuttered the outlet, claiming staffing concerns.
But in November, the National Labor Relations Board ruled that the chain broke labor law by closing the restaurant and not recruiting organizers at its other locations.
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Before the filing, employees had previously walked out in protest of working conditions and understaffing.
In June, employees at the Chipotle restaurant submitted a petition to unionize under Chipotle United, the first-ever movement at the chain.
Now, the company has been forced to pay out to its former staff, but still denies any wrongdoing.
Chief Corporate Affairs Officer Laurie Schalow said: “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.”
Read More: Starbucks illegally fired union staff in a “reign of coercion”
While Chipotle United deemed the settlement announced on Monday, March 27, a victory, it did not reopen the shuttered restaurant.
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Former employees at the Augusta outlet will now earn between $5,800 and $21,000 from Chipotle, based on their average hours, pay rate, and length of service.
Chipotle will also offer to place all those employees on a one-year priority hiring list for other Maine sites.
Over 40 restaurants in Maine, New Hampshire, and Massachusetts will post notices stating they would not shut stores or discriminate based on union backing.
Source: CNBC
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