Chipotle Pays $240,000 to Former Workers After Closing Location That Tried to Unionize

Chiptole has agreed to pay a fine to the former employees of a location it closed after the workers tried to form a union.

According to the Kennebec Journal of Augusta, the $240,000 fine will be split between the former employees based on their seniority, pay rate, and other factors.

Last June, employees filed a petition to form a union at the Augusta location and the following month is when Chipotle announced the store would be closing. The company cited problems recruiting enough employees to properly run the location, but according to the Kennebec Journal of Augusta, the National Labor Relations Board found that the store closure violated labor laws.

Chipotle denies claims that the store closure was due to the union petition with Chipotle spokesperson, Laurie Schalow, stating, “Our operational management reviewed this situation as it would any other restaurant with these unique staffing challenges. Chipotle respects our employees’ rights to organize under the National Labor Relations Act,” per CNBC.

However, Chipotle workers around the country are not letting this discourage them from forming unions. According to Jeffrey Neil Young, the attorney representing Chipotle United, “Organizing drives are currently underway in Michigan, New York, and elsewhere.”

A rally was also held on Tuesday to protest the store’s closure, and the organizer, Brandi McNease, told CNBC that “all they are doing is fueling us.”