Cargill locks out 1,700 workers at Colorado beef plant after contract dispute
Cargill says operations at the facility remain suspended as cattle processing shifts elsewhere
USA – Cargill has locked out around 1,700 employees at its beef processing facility in Fort Morgan, Colorado, after workers rejected a new labour agreement in a dispute centred on wages and workplace conditions.
The action came after cattle slaughter operations at the plant were halted on April 23, with the company redirecting livestock to other processing facilities while negotiations with union members continued.
According to Teamsters Local 455, which represents the employees, workers stopped receiving pay on Wednesday after voting against the company’s latest contract proposal.
Wage dispute deepens
The union said Cargill proposed a wage increase of 70 cents per hour in the first year of a five year contract and an additional 30 cents increase in the final year, while employees were seeking a US$1 hourly raise in the first year and a shorter three year agreement due to uncertainty in the beef sector.
Union leader Dean Modecker said rising living costs, including fuel expenses, had made the offer unacceptable for many workers at the facility.
Cargill defended its proposal, describing it as fair and stating that the package represented an estimated US$33.4 million investment in employees over the life of the contract.
The company also said base wages at the Fort Morgan operation had increased from US$15.35 per hour in 2018 to US$23.50 per hour today.
At the same time, workers raised complaints about working conditions at the plant, including concerns regarding access to bathroom breaks during shifts, allegations the company said it was committed to addressing while treating staff with dignity.
Pressure across the US beef industry
The labour dispute comes as the United States beef industry faces tighter cattle supplies, with the national herd reported to be at its smallest level in 75 years despite continued strong consumer demand and record high beef prices.
Major meat processors including JBS and Tyson Foods have also faced mounting labour tensions and operational pressures linked to rising cattle costs and weaker profit margins in beef processing.
Earlier this year, about 3,800 workers at a JBS beef plant in Greeley, Colorado, staged a strike tied to pay and working conditions, while Tyson Foods cut jobs after shutting a beef facility in Nebraska and scaling back operations in Texas.
Meanwhile, US President Donald Trump has accused large meat processors of contributing to higher beef prices through collusion and directed the Department of Justice to investigate the sector.
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