FORT MORGAN, Colo. (KOAA) — The union representing workers at a Colorado beef processing plant is reporting 1,700 workers were locked out of work this week.
Teamsters Local 455 took to social media Wednesday morning to announce that just after midnight, the lockout started at Cargill's Fort Morgan. The union claimed nearly 20 percent of the town's population was affected by the ‘labor strife.’ According to the latest census data, as of 2024 there were 11,835 people living in Fort Morgan.
Cargill confirmed the lockout with News5, providing a link with more information on the situation from the company. Cargill explained the lockout follows months of bargaining and an employee vote against the latest contract offer. A company spokesperson explained the lockout was initiated because "continued uncertainty around a potential work stoppage creates challenges to operating safely, responsibly and reliably."
"This was a difficult decision and not the outcome we wanted," part of a statement to News5 from Cargill reads." We believe our proposal is fair and competitive, representing an estimated $33.4 million investment over five years. While negotiations continue, we remain focused on safety, responsible operations and serving customers through Cargill’s broader supply chain network. Under current plans, we do not expect material impacts to producers or customers."
The statement from Cargill added that the company respects employees’ right to vote and remains committed to reaching a ratified agreement with the union.
"Cargill and companies like these come into these small towns and act like they're helping us, but really they are holding these towns back," said Dean Modecker, Teamsters Local 455 Secretary-Treasurer.
In this case, Modecker said, the company has held its employees, many from Haiti, Somalia and Central and South American countries, hostage to a substandard contract offer that provides little change or improvement. Members rejected the company's last, best and final offer by a vote of 1,388 to 252 on Tuesday. The members' contract expired on Feb. 22.
"Our members are and have been prepared to sit at the table and reach a deal that's in the best interest of their families, Cargill customers, and the Fort Morgan community," said Modecker. "But the company has said 'No" because they think these workers have no other choice. Now that the company has locked us out, Cargill has made it clear they don't want a deal and they do not care about these men and women and their families. It's a disgrace. The stakes are too high to be playing these games with people's livelihoods."
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