Chipotle has reportedly agreed to pay $240,000 to former employees of its shuttered Augusta, Maine location as part of a settlement for closing the restaurant in the middle of a union organizing drive, according to the Maine AFL-CIO union.
Maine AFL-CIO said the settlement follows a finding by the National Labor Relations Board that Chipotle violated the National Labor Relations Act when it closed the store and allegedly barred members of Chipotle United from being hired at its other locations in Maine.
According to the settlement:
Chipotle will pay total of $240,000 to employees on payroll on July 19, 2022, when it closed the Augusta store.
- Employees will receive between $5,800 to $21,000 depending on their average number of hours worked, pay rate, and longevity prior to store closing.
- Chipotle will offer preferential rehire to all Augusta employees at other Maine locations for period of one year.
- Chipotle will post a notice in about 40 stores in Maine, New Hampshire, and Massachusetts that it will not close stores or discriminate on the basis of union support. These stores are all under the leadership of Chipotle.
The Augusta location closed on July 19, 2022. A month before the store closed, the store became the first Chipotle in the U.S. to file a petition to unionize. Workers wanted safer working conditions and better staffing.
Since then, Maine AFL-CIO said Chipotle workers in Lansing, Michigan voted for union representation. Chipotle workers in Lawrence, Kansas also reportedly have been attempting to organize.
Last year, Chipotle claimed their decision to close the restaurant was because of staffing issues and not the ongoing unionization effort.
Chipotle released the following statement following the settlement:
"A settlement has been reached with the National Labor Relations Board and Chipotle Workers United for the events surrounding the closure of our Augusta, Maine restaurant last year. 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. We respect our employees' rights to organize under the National Labor Relations Act and are committed to ensuring a fair and just work environment that provides opportunities to all.
"Chipotle gives workers industry-leading benefits such as debt-free degrees, tuition reimbursement up to $5,250 per year, access to mental healthcare, financial planning tools, and the opportunity for quarterly bonuses for all employees, including hourly crew members, up to a month's worth of pay per year. We also provide transparent career progression showing how Chipotle crew members can advance to a Restaurateur, the highest General Manager position, in as little as three and a half years, with a total compensation package of approximately $100,000 while leading a multi-million-dollar growing business. In 2022, Chipotle had 22,000 internal promotions including 90% of our restaurant management roles including 100% of US Regional Vice President (RVP) roles, 81% of Team Directors, and 74% of Field Leader positions."