Cargill locked out more than 1,700 [1] unionized workers at its Fort Morgan, Colorado, beef-processing plant on Wednesday, May 20, 2026 [2].

The move signals a significant escalation in labor tensions within the U.S. meat-processing industry, potentially impacting regional production and supply chains.

The workers are represented by the Teamsters union. The lockout occurred after union members rejected the latest contract offer provided by the company [3]. Cargill said that the action was necessary due to continued uncertainty surrounding the ongoing negotiations [3].

Company representatives defended the terms of the proposal. "The $33.4 million contract offer remains fair and competitive," a Cargill spokesperson said [4].

While some reports describe the number of affected employees as approximately 1,700 [3], other accounts indicate the figure is more than 1,700 [1]. The facility in Fort Morgan is a primary hub for the company's beef processing operations in the region.

The lockout prevents union employees from entering the facility and performing their duties while the company and the Teamsters attempt to reach a resolution. The company has not specified a date for when the lockout will end or what specific conditions must be met to allow workers back into the plant [3].

Cargill locked out more than 1,700 unionized workers at its Fort Morgan, Colorado, beef-processing plant

This lockout reflects a broader trend of labor volatility in the American meat-packing sector, where unions are increasingly pushing for higher wages and better conditions. By initiating a lockout rather than waiting for a strike, Cargill is attempting to control the timing and terms of the work stoppage, placing immediate financial pressure on the unionized workforce to accept the $33.4 million proposal.