Cargill locks out employees from its Colorado beef processing plant

Cargill has locked out roughly 1,700 employees from its beef processing plant in Fort Morgan, after union members rejected the company’s latest contract offer.

Workers gathered outside the facility after barriers and signs were put up blocking employees from entering the plant. Employees held signs, chanted and called for a new contract, though they said they were not on strike.

Cargill said the lockout was initiated because uncertainty surrounding a possible work stoppage created operational and safety concerns. The company also said it has moved cattle to other facilities and does not expect the labor dispute to impact production. Cargill maintains its contract offer is “competitive and fair.”

Outside the plant, workers described uncertainty about their future and frustration over stalled negotiations.

“Everybody’s here right now thinking how are we going to work; how are we going to provide for our families,” employee Anabel Hurtado said.

Hurtado, who said she has worked at the plant for four years, described the facility as “a good place to work,” but added, “it’s also painful.”

She said Teamsters Local 455 has spent months pushing for better pay and health care benefits during contract negotiations.

After the union rejected Cargill’s latest offer, employees said they were disappointed negotiations escalated into a lockout affecting more than 1,700 workers.

Cargill said its contract proposal reflects a long-term $33.4 million investment in Fort Morgan employees, including wage increases since 2018, while balancing the financial challenges facing the beef industry. The union said despite recent pay increases and Cargill’s investment claims, workers are still struggling with inflation, rising living costs, workplace safety concerns, and the physical toll of meatpacking jobs.

The dispute is also affecting the city of Fort Morgan, where officials say the plant is a major economic driver.

Fort Morgan City Manager Brent Nation said the plant stopped producing beef nearly a month ago.

“April 23 was the last day that they had any production at the facility,” Nation said. “They use a substantial amount of water every day and a substantial amount of electricity from us. We know almost immediately when they stop production. We’re not selling the electricity to them right now, so it has a direct impact to our utilities.”