Cargill locked out more than 1,700 [2] union workers at its beef processing plant in Fort Morgan, Colorado, on Wednesday, May 20, 2026 [3].
The move signals a significant escalation in labor tensions within the U.S. meatpacking industry, potentially disrupting regional beef production and supply chains.
The lockout followed a contract dispute between Cargill and members of the Teamsters union. According to company reports, union members rejected the most recent contract offer provided by the employer [1].
Cargill said the $33.4 million [3] offer was fair. The company said continued uncertainty was a primary factor leading to the current impasse and the decision to initiate the lockout [2].
While some reports describe the number of affected employees as about 1,700 [1], other sources indicate the figure is more than 1,700 [2]. The facility remains the center of the dispute as both parties navigate the breakdown in negotiations.
The lockout prevents union employees from entering the plant and performing their duties until a new agreement is reached, or the dispute is resolved through other legal or contractual means.
“Cargill locked out more than 1,700 union workers at its beef processing plant.”
This lockout represents a strategic move by Cargill to exert pressure on the Teamsters union to accept the company's financial terms. By halting the work of over 1,700 employees, the company risks immediate production losses but seeks to avoid a long-term contract that may exceed its budgeted labor costs. The outcome will likely serve as a bellwether for other meatpacking labor negotiations across the U.S.
