Cargill Locks Out 1,700 Workers at Colorado Beef Plant
Cargill has initiated a lockout of 1,700 employees at its Fort Morgan facility after workers rejected a five-year contract proposal. The dispute centers on wage increases and contract duration during a period of tight cattle supplies and rising operational costs for major U.S. meatpackers.
Cargill locked out 1,700 employees at its Fort Morgan beef plant on Wednesday evening following a rejected contract proposal. The facility in the United States has already been offline since April 23 after the company suspended cattle slaughtering. This disruption tightens a beef supply chain already strained by the smallest national cattle herd in 75 years.
### Wage Disputes Hit Beef Processing Margins The lockout began after workers represented by Teamsters Local 455 rejected a five-year deal offering a 70-cent hourly raise in the first year. Union leader Dean Modecker said employees are seeking a $1 hourly raise and a shorter three-year contract to navigate industry volatility. Since 2018, base wages have increased to $23.50 per hour from $15.35, providing context for the negotiation. Cargill officials stated the rejected offer represented a $33.4 million investment in the workforce.
