Cargill locked out approximately 1,700 unionized workers at its beef processing plant in Fort Morgan, Colorado, on May 20, 2026 [1], [3].

The move signals a significant escalation in labor tensions within the U.S. meatpacking industry, potentially disrupting beef production and supply chains during a period of contractual instability.

The workers are represented by the Teamsters union. According to company reports, the lockout followed the union's rejection of a contract offer valued at $33.4 million [5]. Cargill said the decision was based on continued uncertainty and the risk of a work stoppage created by the impasse [5], [6].

Financial tensions have mounted as negotiations stalled. Some reports indicate that workers were instructed to stay home with pay for four weeks prior to the lockout, but that pay ended on the eve of the shutdown [2]. This creates a precarious financial situation for the 1,700 employees now barred from the facility [1].

The Fort Morgan plant is a critical hub for beef processing in the region. The lockout prevents union employees from entering the site while the company seeks to manage production during the dispute [4].

Cargill has not provided a timeline for when the lockout will end. The company said the previous offer was a fair attempt to resolve the dispute, while the union continues to seek terms they find acceptable [5].

“Cargill locked out approximately 1,700 unionized workers”

This lockout reflects a broader trend of labor unrest in the meatpacking sector, where unionized workers are increasingly leveraging collective bargaining to secure higher wages and better conditions. By initiating a lockout rather than waiting for a strike, Cargill is attempting to maintain control over the timing and nature of the work stoppage, though it risks prolonging the dispute and damaging its relationship with a large segment of its workforce.