Cargill has locked out more than 1,700 workers at its beef facility in Fort Morgan, Colorado, escalating a labour dispute that began 20 May after months of failed contract talks.
The Teamsters Local 455 union said workers rejected Cargill's "last, best and final offer" by a vote of 1,388 to 252. The previous contract expired on 22 February. Cargill said the lockout was "a difficult decision" but that its proposal was "fair and competitive," representing an estimated $33.4 million investment over five years.
The core dispute
The union said the conflict centers on demands for "necessary improvements" to wages, healthcare and safety protections. Dean Modecker, secretary-treasurer of Teamsters Local 455, said Cargill had held employees "hostage to a substandard contract offer that provides little change or improvement" and called the lockout "a disgraceful move by a company that has long taken its workers for granted."
Production impact and supply chain response
Cargill said it does "not expect material impacts to producers or customers" because it can serve demand through its broader supply chain network. The company had already adjusted production schedules at Fort Morgan on 23 April in anticipation of a possible work stoppage. Cattle scheduled for the facility have been redirected to other company locations.
Cargill confirmed it is not planning to close the Fort Morgan site permanently or end beef production there. "Fort Morgan remains an important facility for Cargill," the company said, adding it aims to return the plant to normal operations through continued negotiations with the union. During the lockout, employees continued to be paid under weekly guaranteed provisions in the expired contract.
Broader restructuring
The lockout occurs amid wider changes to Cargill's US manufacturing footprint. In February, Cargill announced it would shut its ground-beef processing plant in Milwaukee, Wisconsin, eliminating around 221 jobs, with closure targeted for end of May. The company also closed its turkey-processing site in Springdale, Arkansas, last year.
In the broader US beef sector, Tyson Foods reported continued constraints in cattle availability. Tyson said supplies are expected to remain "tight" for the foreseeable future and reported a 7.3 percent drop in beef volumes in the three months to 27 December, compared to an 8.4 percent decline in the final quarter of fiscal 2025.