Chipotle Teamsters Local 243 in Lansing, Michigan, demonstrated on Friday to call for what they consider a just contract from the fast-casual Mexican grill after it offered certain workers a 5-cent hourly raise.
The rally aims to pressure the company to offer more substantial pay raises and improved working conditions, rally organizers told Newsweek. The push for a fair contract follows Chipotle's mid-October offer of a 5-cent hourly raise to its top-performing workers at the Lansing location where the starting wage is $13.25 per hour.
The Lansing union is the first Chipotle location to organize under the International Brotherhood of Teamsters, a move made over a year ago. The union criticized the corporation for not engaging earnestly in negotiations.
Matt McQuaid, a Teamsters spokesperson, shared that the union's demands include a living wage aligned with inflation and a host of other conditions conducive to a better working environment. The specifics of the key demands are as follows.
- A grievance procedure (a fair and just process for adjudicating disciplinary matters).
- Compensation that accounts for the cost of living and provides a living wage for part-time workers.
- Scheduling that is done according to seniority.
- Paid breaks.
- Guaranteed sick leave.
- Minimum staffing levels that are consistently adhered to by management.
"Chipotle Lansing workers get $13.25 per hour. There are some fast casual chains in the area that pay as much as $16 or $17 per hour," McQuaid told Newsweek, highlighting that CEO Brian Niccol earned $17.2 million in 2022. "We're asking for a living wage to start and raises every year thereafter that keep pace with inflation."
In response to the planned rally, Laurie Schalow, chief corporate affairs officer at Chipotle, told Newsweek that the company respects its employees' "rights to organize under the National Labor Relations Act," and is "bargaining in good faith on the first union agreement" with the Lansing location.
Schalow pointed out Chipotle's several competitive benefits and transparent career progression opportunities, adding that the company offers tuition reimbursement of up to $5,250 per year. She also stressed that the details of the wage agreement are part of the ongoing negotiations are best kept out of the public domain for the benefit of the employees.
In March, Chipotle settled with 24 employees for $240,000 after closing an Augusta, Maine, store amid unionization efforts—a move criticized by labor advocates and scrutinized by the National Labor Relations Board (NLRB). Though, the Newport Beach, California-based company told CNBC at the time that it settled not because the company did anything wrong, but because "the time, energy and cost to litigate would have far outweighed the settlement agreement."
Chipotle currently faces five open unfair labor practice charges, NLRB Director and press secretary Kayla Blado told Newsweek, including allegations in Lansing that highlight coercive and retaliatory practices.
Chipotle's financial robustness was illustrated in its latest quarterly earnings report, issued on October 26. The company reported $313.2 million in net income, or around $11.32 per share, on net sales of $2.47 billion.
Chipotle's stock traded higher for the day at around $2,042 per share.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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Aj Fabino is a Newsweek reporter based in Chicago. His focus is reporting on Economy & Finance. Aj joined Newsweek ... Read more
