New York City Comptroller Lander and Pension Funds Call on Chipotle to Adopt a Policy of Noninterference with Worker Unionizing Efforts

 

Shareholder proposal urges Chipotle’s board to halt anti-union tactics

New York City Comptroller Brad Lander, on behalf of the five New York City Retirement Systems, filed a shareholder proposal at Chipotle Mexican Grill, Inc. (Chipotle) calling for the Board of Directors to adopt and disclose a policy of noninterference which clearly upholds worker rights to freedom of association and collective bargaining. The five Systems have a total of 48,870 company shares, valued at $80.46 million as of January 31, 2023.

Chipotle, which was recently ordered to pay more than $20 million to 13,000 workers after the company violated New York City’s worker protection laws, has demonstrated a pattern of anti-union tactics and retaliatory firings. This week, the National Labor Relations Board (NLRB) found that Chipotle violated federal labor law by closing a Maine restaurant where workers voted to unionize; it ordered the company to reopen the restaurant, reinstate dislocated employees’ jobs, and provide back pay.

“Protecting workers’ fundamental rights to organize is not just good ethics, it’s good business. As long-term shareholders we expect responsible employers to respect the labor rights of their workers. Chipotle must catch up with companies like Microsoft that have recognized that noninterference with worker organizing is a basic standard for responsible employers,” said New York City Comptroller Brad Lander.

The proposal requests that the board adopt a noninterference policy aligned with the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work. The ILO defines freedom of association as the “right of workers and employers to create and join organizations of their choice freely and without fear of reprisal or interference.” In addition to adhering to ILO standards, the proposal requests that the policy prohibit the company from interfering with workers exercising their right to form or join a trade union and require timely collective bargaining. It also calls for the creation of robust accountability processes if the policy is violated.

As major shareholders representing the interests of hundreds of thousands of retired and current unionized workers, New York City’s five public pension funds are troubled by reports of anti-union behavior by Chipotle and other portfolio companies. The NLRB has investigated numerous complaints of anti-union tactics by Chipotle, including closing restaurants that vote to unionize, firing workers for organizing, and hiring anti-union consultants.

These aggressive, anti-union practices clearly violate international standards on human rights and pose serious long-term reputational, legal, and operational risks to the company and its shareholders.