Cargill halts beef production at Colorado facility after locking out 1,700 workers
Company says operations at the plant remain suspended while negotiations continue
USA – Cargill has suspended beef processing activities at its Fort Morgan, Colorado, facility after locking out more than 1,700 employees following a breakdown in contract negotiations with unionised workers.
The company said the lockout started on 20 May after several months of talks failed to produce a new labour agreement and workers voted against Cargill’s most recent contract proposal at the plant.
According to International Brotherhood of Teamsters Local 455, employees voted 1,388 to 252 against what the union described as the company’s “last, best and final” contract offer after the previous agreement expired on 22 February.
The union said the dispute involves demands for higher wages, better healthcare coverage and stronger workplace safety protections at the beef production site in Colorado.
Dean Modecker, secretary treasurer of Teamsters Local 455, accused the company of pushing workers into accepting a contract that offered limited improvements despite the scale of operations at the facility.
Meanwhile, Cargill said the lockout was not taken lightly and maintained that its proposal represented a fair package that would involve around US$33.4m in investment over a five year period.
Operations redirected
Before the lockout began, the company had already reduced production schedules at the Fort Morgan plant on 23 April as uncertainty grew over a possible work stoppage linked to the labour dispute.
Cargill stated that it does not expect disruptions for cattle suppliers or customers because livestock allocated to Fort Morgan has been rerouted to other facilities within its processing network.
The company also said workers continued receiving payments under guaranteed weekly provisions tied to the expired contract while negotiations remained unresolved.
Cargill confirmed that it has no plans to permanently close the Fort Morgan operation or end beef production at the site, describing the facility as an important part of its US operations.
The labour dispute comes as the company reshapes parts of its manufacturing footprint across the United States following earlier closure announcements involving meat processing operations.
In February, Cargill disclosed plans to shut down its ground beef processing facility in Milwaukee, Wisconsin, resulting in the permanent loss of about 221 jobs, while the company also closed a turkey processing site in Springdale, Arkansas, last year.
Separately, Tyson Foods has reported continued pressure on beef operations because of limited cattle supplies, with the company recording a 7.3% decline in beef volumes during the quarter ending 27 December compared with an 8.4% decrease in the previous quarter.
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