Chipotle agrees to pay after closing store in Maine that sought union


Enterprise

The corporate introduced it was completely closing its Augusta, Maine, location final yr after employees filed a Nationwide Labor Relations Board petition for a union election.

alt = A Chipotle Mexican Grill restaurant sign.
A Chipotle restaurant signal. AP Picture/Keith Srakocic, File

PORTLAND, Maine (AP) — Chipotle Mexican Grill has agreed to pay $240,000 to former staff as a part of a settlement stemming from a grievance that the corporate violated federal regulation by closing a restaurant the place employees wished to unionize.

Chipotle introduced it was completely closing its Augusta, Maine, location final yr after employees filed a Nationwide Labor Relations Board petition for a union election. The NLRB later mentioned the closure was unlawful.

The Maine location was the primary within the chain to file a union petition. The settlement, launched by union officers on Monday, states that two dozen staff will obtain funds from Chipotle and they are going to be positioned on a preferential hiring record for different Maine areas.

The corporate should additionally publish a discover in dozens of shops in New England that it gained’t shut shops or discriminate in opposition to staff because of union help, the settlement states.

“It sends a message to companies that shutting down a retailer and blackballing employees didn’t work for Chipotle and it gained’t work for them both,” mentioned Brandi McNease, a former worker of the Augusta retailer and the lead organizer of the union drive, in a press release supplied by the Maine AFL-CIO.

Chipotle mentioned in a press release that it settled the lawsuit as a result of combating it could have been burdensome and costly. The corporate respects “our staff’ rights to prepare underneath the Nationwide Labor Relations Act” and is “dedicated to making sure a good and simply work surroundings that gives alternatives to all,” mentioned Laurie Schalow, chief company affairs officer for the corporate, in a press release.

“We settled this case not as a result of we did something improper, however as a result of the time, power and value to litigate would have far outweighed the settlement settlement,” Schalow mentioned.

The Augusta location closed final summer season. Employees described the closure as retaliation for the union drive, however firm representatives mentioned the closure wasn’t associated to unionization.

The funds the employees are receiving range primarily based on their common variety of hours labored, pay price and longevity previous to retailer closing, union officers mentioned.