CHIPOTLE MEXICAN GRILL, INC. | Adoption of a non-interference policy at CHIPOTLE MEXICAN GRILL, INC.

Status
10.05% votes in favour
AGM date
Previous AGM date
Proposal number
7
Resolution details
Company ticker
CMG
Lead filer
New York City Office of the Comptroller
Resolution ask
Adopt or amend a policy
ESG theme
  • Social
ESG sub-theme
  • Decent work
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
RESOLVED: the Board of Directors of Chipotle Mexican Grill, Inc. (“Chipotle”) shall adopt and disclose a Noninterference Policy (the “Policy”) upholding the rights to freedom of association and collective bargaining in its operations as reflected in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work (“Fundamental Principles”) and the United Nations Guiding Principles on Business and Human Rights (“UNGP”). The Policy should contain commitments to the following:
•
Noninterference when employees exercise their right to form or join trade union, which includes prohibiting Chipotle from undermining this right or pressuring employees seeking to form or join a trade union;
•
Good faith and timely collective bargaining if employees form or join a trade union;
•
Where national or local law is silent or differs from international human rights standards, Chipotle will follow the higher standards; and
•
Processes to identify, prevent, account for and remedy any practices that violate or are inconsistent with the Policy.
Supporting statement
SUPPORTING STATEMENT: Freedom of association and collective bargaining are fundamental human rights under internationally recognized human rights frameworks, including the Fundamental Principles, UNGP, and United Nations Universal Declaration of Human Rights (“Declaration”).
According to the International Labour Organization, “Freedom of association refers to the right of workers …to create and join organizations of their choice freely and without fear of reprisal or interference.”4
As stated in the UNGP guide, “…where national laws and regulations offer a level of human rights protection that falls short of internationally recognized human rights standards, enterprises should operate to the higher standard.”5
Chipotle’s Code of Ethics is indeterminant as to which standards prevail if applicable laws offer human rights protections that fall short of international human rights standards: “[w]e conduct our business in a way that respects fundamental human rights…and we support and align around the standards set out in [Declaration] and other applicable federal, state, provincial and local laws.”6 Chipotle should adopt a Policy upholding workers’ exercise of their fundamental rights under international standards and U.S. law.
Since May 2022, Chipotle has settled 11 unfair labor practice charges brought before the National Labor Relations Board (“Board”) involving workers’ right to organize.7 Alleged tactics include retaliatory firings, restaurant closure, anti-union consultants, and captive audience meetings.8 In November 2023, Chipotle reportedly faced five open unfair labor practice charges at the Board.9 In 2023, Chipotle agreed to pay 24 employees $240,000 after closing a Maine store where workers tried to unionize.10
Microsoft has adopted company-wide noninterference Principles11 and announced a “labor neutrality agreement” at Activision Blizzard, which “reflects a fundamental belief ... that enabling workers to freely and fairly make a choice about union representation will benefit Microsoft and its employees...”12
Chipotle’s failure to similarly respect workers’ rights presents reputational, legal, and operational risks that may negatively impact long-term shareholder value.
We urge shareholders to vote FOR this proposal.

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