Chipotle Settles over Restaurant Closure that Followed Unionization Efforts

Chipotle Mexican Grill will pay $240,000 to former workers of an Augusta, Maine, restaurant to resolve claims that it closed the site as part of alleged union busting. Chipotle has denied any wrongdoing. We've gathered articles on the news from SHRM Online and other media outlets.

Company's Stance on NLRB Complaint

The restaurant was closed last July after workers tried to organize. At the time, the company said the closure was due to difficulty finding staff. But the National Labor Relations Board (NLRB) filed a complaint alleging that the closing was intended to defeat 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 company said in a statement on March 27. "We respect our employees' rights to organize under the National Labor Relations Act."

(CNN)

Union's Position

The settlement "isn't just a victory for Chipotle United. It's a win for food service workers across the country. 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," said Brandi McNease, a former Augusta Chipotle worker and lead Chipotle United organizer, in a statement. "Now that we've won this battle, we'll keep fighting. Every service employee deserves the right to safe working conditions and fair wages to support our families, and this movement won't stop until we get them. We are going to put an end to the old way of doing business."

(Bangor Daily News)

Placement on Preferential Hiring List

The settlement states that two dozen employees will receive payments from Chipotle and will be placed on a preferential hiring list for other Maine locations. The company also must post a notice in New England stores that it won't close restaurants or discriminate against employees due to union support.

(Fox News)

Some Starbucks' Store Closures Have Been Challenged

Organizing campaigns at other companies have involved store closures that workers claimed were retaliation for their union efforts. Starbucks has closed several stores where workers had been organizing. Those closures are the subject of NLRB complaints.

A Starbucks spokesperson said in an e-mail that the company does not believe the allegations have merit, calling the complaints "the beginning of a litigation process that permits both sides to be heard."

(HuffPost and HuffPost)

NYC Trader Joe's Wine Shop Abruptly Closed

A Trader Joe's wine store in New York City reportedly closed abruptly Aug. 11, 2022, following monthslong unionization efforts. The United Food and Commercial Workers International Union (UFCW) said it was ready to pursue all legal action, including filing an unfair-labor-practice charge with the NLRB. The union subsequently filed such a charge. Trader Joe's did not respond to inquiries about the closure.

(HuffPost, UFCW and SHRM Online)