Lockout at Colorado beef plant may end soon

A lockout at a beef processing plant in Fort Morgan, Colorado, that has stretched beyond two months may be nearing an end.

Representatives from Cargill Meat Solutions and the Teamsters Local 455 both said in email responses on July 30 that an agreement is close.

Cargill and the union met in person July 28, and reached a recommended settlement for a new labor agreement at Cargill’s Fort Morgan beef facility, a company representative said.

The recommended settlement is subject to ratification by union members, with a vote expected early next week. “Out of respect for employees and the ratification process, we will not discuss the proposed terms before the vote,” Cargill said.

The lockout started nearly 70 days ago and had impacted about 1,700 workers.

“Teamsters Local 455 has come to a tentative agreement with Cargill Meat Solutions that delivers needed improvements to wages and benefits,” a union representative said. “The members will now have an opportunity to review and vote on the agreement.”

The lockout was initiated May 20 because of continued uncertainty around a potential work stoppage which created challenges for operating safely, responsibly, and reliably, the Cargill release stated then.

During the lockout, cattle originally scheduled for Fort Morgan have been redirected to other Cargill facilities, the company said, so it can continue honoring commitments to producers and customers. Under current operating plans, it does not expect material impacts to either group.

 The company said in May its annual payroll had increased by about $32.6 million since 2018, rising from approximately $64.5 million to $97.1 million.

Cargill has also made broader investments in Fort Morgan in support of employees and the community, including housing initiatives near the plant and facility improvements.

While production was paused, Cargill continued paying employees consistent with the weekly guaranteed requirements outlined in the expired contract.

Dave Bergmeier can be reached at 620-227-1822 or [email protected].