Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Workers seek union at a Chipotle restaurant, a first for the chain

Published 06/23/2022, 12:09 PM
Updated 06/23/2022, 05:39 PM
© Reuters. FILE PHOTO: The logo of Chipotle is seen on one of their restaurants in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo

© Reuters. FILE PHOTO: The logo of Chipotle is seen on one of their restaurants in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo

By Hilary Russ

NEW YORK (Reuters) - Workers at a Chipotle Mexican Grill (NYSE:CMG) restaurant in Augusta, Maine, have petitioned a federal labor board for a union election, becoming the first U.S. Chipotle location to seek to unionize.

The move could be significant if it spreads to more Chipotle stores, as has happened at corporate-owned U.S. Starbucks Corp (NASDAQ:SBUX) locations, or even other large restaurant chains.

The Chipotle employees filed their petition on Wednesday with the National Labor Relations Board, Maine AFL-CIO spokesman Andy O'Brien said.

The workers have formed an independent union called Chipotle United and only asked the AFL-CIO for advice on how to file the paperwork, O'Brien said.

At Starbucks, the union drive is rattling the company. In April, it brought back former CEO Howard Schultz, but it is not clear whether his efforts to address employees directly and promise better benefits have staunched the flow of union petitions.

Out of Starbucks' roughly 9,000 company-owned U.S. cafes, at least 280 have sought to organize since August 2021.

Chipotle also owns its own stores, which could make unionization easier than at franchised restaurants like McDonald's Corp (NYSE:MCD).

Because Chipotle owns its locations, "workers there can join together across stores and state borders to build power and force the company to negotiate with the them," O'Brien said.

Last week, the Maine Chipotle workers walked out over what they said were unsafe conditions, including low staffing and inadequate training and support, the Bangor Daily News reported.

In a statement, Chipotle Chief Corporate Affairs Officer Laurie Schalow said the company immediately sent more staff, retrained existing employees and provided "new leadership" at the restaurant.

© Reuters. FILE PHOTO: The logo of Chipotle is seen on one of their restaurants in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo

"We respect our employees' rights under the National Labor Relations Act and are committed to ensuring a fair, just, and humane work environment that provides opportunities for all," Schalow said.

The company did not immediately comment on whether it would challenge the election petition under the NLRB process, as Starbucks has done.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.