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Cargill ends lockout at Colorado beef plant after union ratifies new contract

Victor Stefanescu, The Minnesota Star Tribune on

Published in Business News

A months-long worker lockout at one of Cargill’s largest meatpacking facilities will end after union workers Monday ratified a new contract that will increase wages.

The Minnesota-based company stopped operations at its Fort Morgan, Colorado, facility in May after pay negotiations between the global food company and Teamsters members reached an impasse.

The new contact will raise worker wages by $2.15 an hour over five years, according to figures provided by Cargill. Workers will receive a bonus of $1,000 in 2029, in lieu of a pay raise that year.

Cargill spokeswoman April Nelson said in a statement that the company is pleased with the vote.

“We will work closely with the union on a safe, phased return to operations,” Nelson said. “We look forward to welcoming employees back and moving forward together.”

The workers will receive training because of the three-month pause, Nelson said. The company expects workers to return in about a week and meatpacking to restart the week of Sept. 7.

“Employee safety, food safety and operational readiness will guide every step of the process,” Nelson said.

The union, Teamsters Local 455, said on Facebook that its members “overwhelmingly ratified” the agreement, adding that the return-to-work process “may be bumpy as different job classifications return on different schedules.”

“Cargill Teamsters have stood side by side throughout this fight to protect their work, families and community,” the Facebook post continued. “While this contract is not perfect, it is a legally binding agreement that provides security for the more than 1,700 men and women who keep Cargill running.”

 

The union did not immediately respond to messages seeking comment Monday.

The contract ratification ends a conflict for the company at a time when meatpackers are under consumer and regulatory pressure due to high beef prices.

The plant has historically employed about 2,000 workers and has the capacity to process more than 4,000 cattle each day. Cows were diverted to facilities in Kansas, Nebraska and Texas during the closure.

The May 20 lockout came after months of bargaining between Teamsters Local 455 and the company. Cargill reported at the time that it was willing to make “an estimated $33.4 million investment in Fort Morgan employees.” But a union official said the raises work out to be “pennies” when broken down per employee over five years.

The union said its members voted overwhelmingly to reject the contract at the time, and Cargill said it locked out employees because “continued uncertainty around a potential work stoppage creates challenges to operating safely, responsibly and reliably,” adding that the company did not want to do it.

Since then, the dispute has attracted the attention of officials including Colorado Gov. Jared Polis, who met with the union and urged Cargill to continue negotiating a new contract.

“Cargill’s plant in Fort Morgan is a major employer and significant part of the economy in Morgan County and Northeast Colorado,” the governor said in a July statement. “Walking the picket line and talking with union leadership reminds me how this isn’t just a negotiation; it’s about Colorado families who rely on these jobs to support their kids, pay their bills, and build their futures.”


©2026 The Minnesota Star Tribune. Visit at startribune.com. Distributed by Tribune Content Agency, LLC.

 

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