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Chipotle agrees to $240K settlement with Maine workers who attempted to unionize

The workers claimed the company closed the store permanently and blacklisted them from job postings in retaliation to their attempts to unionize.

AUGUSTA, Maine — Former workers at the Augusta Chipotle announced Monday they’d won a massive victory for workers.

Members of Chipotle United said they’d won a $240,000 settlement from the company, holding a victory press conference outside the now-empty Augusta business.

The workers attempted to unionize in the summer of 2023, but the company shuttered the restaurant in July and the union members claimed they were blacklisted from job postings at other locations. 

In all, 24 former employees are in line for a piece of the settlement, which covers back pay and some future wages they would have made if the company hasn’t shuttered the restaurant last June. 

Sarah Bigney McCabe is the organizing director for the Maine AFL-CIO, and advised the workers. She said this outcome is historic not because of the money, but because the regional manager will have to post a notice visible to workers in all 40 northern New England Chipotles. 

The notice doesn't explicitly admit wrongdoing by Chipotle, but it does remind workers they can unionize and support unions; promises the company won't close a location or refuse to consider employees for new positions to discourage them from organizing; and specifically offers preferred hiring to the former Augusta employees.

Chipotle's corporate office did not respond to a request for an interview, but Chief Corporate Affairs Officer Laurie Schalow acknowledged the settlement in a statement to NEWS CENTER Maine.

"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," she wrote. "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."

Brandi McNease worked at the restaurant and led Monday's announcement. She said they were never looking to take on a corporation, but they weren’t backing down from demanding a safe and fair workplace.

"We’ve watched these corporations behave so badly," she said. "They have, just literally, shown their colors. And if it’s worker against corporation then the workers need to know that we have the power; we have the means; we are the ones that make the value. So, we really need to think about what we’re worth to them."

Maine Department of Labor Commissioner Laura Fortman sent a statement Monday afternoon. 

"All working people should have the right to decide freely and independently whether or not to unionize, without the fear of losing their jobs," she wrote. "When the Augusta location closed, the Maine Department of Labor deployed a rapid response team to assist affected workers. We support the protections that are in place for workers’ right to organize and appreciate that this case has gone through the proper channels of the National Labor Relations Board."

When the company closed the Augusta restaurant, management taped a sign to the front door stating, "Experience Closure." It is a tongue-in-cheek phrase usually meant to tell customers the restaurant would be closed for the day.

Arrow Smith was greeted by that sign in July as the first sign the restaurant would be shut down.

"When we first rolled up here and saw these signs on the doors, I'm pretty sure at least two of us laughed so hard that we cried," Smith recalled.

With this settlement, Smith has indeed found closure; at least for the day. They intend to apply to another Chipotle location.

"All the ones in our area are so critically understaffed that they could definitely use our help," Smith said. 

"And if they want to unionize too, then we'll use what we've learned to help them do it."

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