07:26 AM EDT, 08/27/2024 (MT Newswires) -- (Updates with a response from Chipotle Mexican Grill ( CMG ) in the fourth and fifth paragraphs.)

A US government labor watchdog accused Chipotle Mexican Grill ( CMG ) of refusing to give raises to employees who opted to unionize in violation of the law, Bloomberg reported Monday.

The US National Labor Relations Board's general counsel said that the food retailer illegally barred employees at its sole unionized US restaurant from raises, Bloomberg reported, adding the federal agency plans to begin formal legal measures against the company unless it settles with the employees.

"We respect our employees' rights to organize under the National Labor Relations Act and are committed to ensuring a fair, just, and humane work environment that provides opportunities to all," Chief Corporate Affairs Officer Laurie Schalow told MT Newswires in an email. Schalow said the company "had 24,000 internal promotions including 90% of our restaurant management roles and 87% of Field Leader positions" in 2023.

"We also provide transparent career progression showing how Chipotle crew members can advance to a Restaurateur, the highest General Manager position, in as little as three and a half years, with a total potential compensation package of approximately $100,000 while leading a multi-million-dollar growing business," Schalow's statement reads.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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