Chipotle Mexican Grill (CMG) Accused of Illegally Denying Raises to Unionized Workers in Michigan
By Daniel Wiessner
(Reuters) – U.S. labor board prosecutors have found merit in the claims made by a union against Chipotle Mexican Grill, alleging that the fast-casual chain unlawfully withheld raises from workers at a Michigan restaurant who had unionized.
The National Labor Relations Board’s general counsel is expected to file a formal complaint against Chipotle unless the claims brought by the International Brotherhood of Teamsters are resolved, NLRB spokeswoman Kayla Blado stated on Monday.
Employees at the Lansing, Michigan, restaurant voted 11-3 in favor of joining the Teamsters in 2022, but have yet to reach a contract agreement with Chipotle. The union’s complaint, filed last year, accuses Chipotle of falsely claiming that the workers were ineligible for pay increases because of their unionization status.
Chipotle and legal representatives for the Teamsters have not responded to requests for comments at this time.
Last year, Chipotle agreed to pay $240,000 to settle a separate NLRB case involving the closure of a restaurant in Augusta, Maine, amidst a union campaign. While Chipotle denied any wrongdoing, the company agreed to display notices regarding workers’ legal rights at 40 stores across New England.
If the general counsel proceeds with a complaint in the Michigan case, it will be reviewed initially by an administrative judge and subsequently by the five-member board appointed by the president. Decisions made by the board can be appealed to federal appeals courts.
The NLRB is currently facing multiple lawsuits, including at least five filed this month, alleging that its internal enforcement procedures violate the U.S. Constitution.
Various companies, such as SpaceX and Energy Transfer, have taken legal action against the agency after being accused of engaging in illegal labor practices.
(Reporting by Daniel Wiessner in Albany, New York, Editing by Alexia Garamfalvi and Bill Berkrot)