A leading union-owned bank is pushing Chipotle to bring in an outsider to chair its board of directors to improve transparency in the wake two separate E. coli outbreaks since December 2015.
{mosads}Amalgamated Bank, a company shareholder, said Chipotle’s recent earnings show it’s struggling to come back after having sickened 60 people across 14 states.
In the third quarter of 2016, Chipotle revenues decreased by 14.8 percent to $1 billion compared to the third quarter of 2015, even though the CDC announced five months before the quarter started that the outbreak was over.
“As we have seen for months, Chipotle’s closed off and limited governance structure is unsustainable and counterproductive, posing a direct risk to shareholders and the public at large,” Keith Mestrich, Amalgamated Bank’s president and CEO, said in a press release. “It’s clear to everyone that management must improve to address the public and investors’ growing crisis of confidence.”
Chipotle CEO Steve Ellis is now chairing the company. Chipotle did not immediately respond to requests for comment.
The fast-casual Mexican restaurant has been under fire recently over allegations that it’s failing to pay employees overtime. Nearly 10,000 workers have joined a class action lawsuit against the company and top Democrats have called for an investigation by the Labor Department.