Cargill locked out approximately 1,700 employees [1] at its Fort Morgan, Colorado, beef processing plant on May 20, 2026 [3].
The action follows a vote by union members of Teamsters Local 455 to reject the company's latest contract offer. This lockout disrupts operations at a major processing hub and signals a deepening rift between the corporate entity and its labor force.
The dispute centers on a contract proposal valued at $33.4 million [2]. The company initiated the lockout after the union members declined the terms of this offer [2], reports said.
Cargill provided varying justifications for the decision to bar workers from the facility. The company cited safety reasons for the lockout [4], and pointed to continued uncertainty regarding the contract negotiations [2], the company said.
The workforce affected by the lockout consists of about 1,700 employees [1]. These workers are represented by Teamsters Local 455, which continues to negotiate for terms the membership finds acceptable.
Operations at the Fort Morgan plant remain impacted as the two sides struggle to reach an agreement. The lockout remains in effect as of this week, leaving the future of the plant's production schedule unclear.
“Cargill locked out approximately 1,700 employees at its Fort Morgan, Colorado, beef processing plant”
This lockout represents a high-stakes leverage play by Cargill to pressure union members into accepting a $33.4 million contract. By citing both safety and uncertainty, the company is attempting to justify the operational shutdown legally and publicly, while the scale of the lockout—affecting 1,700 workers—threatens significant production delays in the U.S. beef supply chain.
