Cargill announced on May 20 that it has initiated a lockout at its Fort Morgan, Colorado, beef facility after employees voted against the company’s latest contract offer following months of bargaining.
The move comes as the plant has not been harvesting cattle since April 23 due to ongoing labor negotiations with Teamsters Local 455 and concerns about a potential work stoppage. Beef processing requires coordination and involves live animals, which makes sudden production stops risky for food safety, animal welfare, and could lead to significant food waste.
“This was a difficult decision and not the outcome we wanted,” a Cargill spokesperson said. “The lockout was initiated because continued uncertainty around a potential work stoppage creates challenges for operating safely, responsibly and reliably. We respect employees’ right to vote and remain committed to reaching a ratified agreement with the union.”
According to Cargill, shifting production from Fort Morgan has not affected its overall weekly harvest numbers; instead, operations have been moved to other facilities. The company said that at full capacity the Fort Morgan plant processes about 4,700 head per day but had averaged around 4,000 before halting operations.
“We believe our proposal is fair and competitive, representing an estimated $33.4 million investment over five years,” the spokesperson said. “While negotiations continue, our focus remains on maintaining safety, managing operations responsibly and using Cargill’s broader supply chain network to continue serving customers. Under our current plans, we do not expect material impacts to producers or customers.”
A union leader commented on social media: “The members at Cargill have spoken loud and clear — by an overwhelming 85% vote, the company’s offer was rejected. Unity and solidarity sent a strong message that the membership deserves better.”
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