Fort Morgan Labor Update

A lockout began at Cargill’s Fort Morgan, Colorado, beef facility on May 20, 2026.

Cargill remains focused on reaching an agreement while maintaining safety at and around the facility and minimizing disruption for cattle suppliers, customers and the broader community.

Cattle scheduled for Fort Morgan have been redirected to other Cargill facilities so Cargill can continue honoring commitments to producers and customers.

Cargill has been negotiating in good faith with the union since late February, before the prior contract expired. To date, the parties have participated in 13 days of bargaining.

Cargill has offered two package proposals for a union vote, including our last, best and final offer, which was voted on May 18–19. After the union contacted us on May 20, we worked with them to schedule additional bargaining on May 27. During that meeting, we reviewed the union’s counterproposal and had hoped the discussion would help move us closer to an agreement. Unfortunately, the meeting did not result in an agreement.

While our last, best and final offer remains our position, we continue to be open to discussing how the overall contract package could be structured in different ways to better address employee priorities.

Our goal remains to reach a sustainable agreement that supports employees and their families while also protecting the long-term future of the Fort Morgan facility. We continue to welcome proposals that help move the parties toward resolution and would support a joint meeting with a mediator.

Cargill’s proposal included additional economic value for employees, including bonuses and a five-year agreement designed to provide stability and predictable wage increases. Under the proposed contract:

• Year 1 wages would range from $24.20 to $32.10 per hour, based on role requirements, skill level and job complexity
• The proposal represents an estimated $33.4 million investment in Fort Morgan employees over the five-year agreement 

Cargill believes the proposal is fair and competitive and reflects the company’s long-term commitment to, and appreciation for, Fort Morgan employees.

Employees determine whether to ratify a contract offer through the union’s voting process.

Cargill respects workers’ right to make their voices heard. Our focus remains on continuing discussions in good faith and working toward an agreement that supports employees and the long-term success of the facility.

Cargill’s goal has been to reach an agreement and avoid disruption. After continued bargaining, an unratified contract proposal and continued uncertainty around a potential work stoppage, Cargill made the difficult decision to initiate a lockout. 

Beef processing involves live animals and highly coordinated operations. A sudden stoppage during production could create risks related to food safety, animal welfare and food waste. This was not the outcome we wanted, and Cargill remains committed to reaching an agreement through continued good-faith negotiations.

Cargill is committed to providing employees adequate restroom access and treating employees with dignity and respect. Employees have scheduled breaks and meal periods during each shift, as well as a process to request restroom access outside scheduled breaks.

Employees should notify a supervisor or lead and wait briefly for coverage before leaving their workstation. If the need is urgent and a supervisor or lead is not available, employees should notify a co-worker, use the restroom and return promptly.

Employees are not disciplined for following this process, which is shared during new hire orientation and employee meetings.

Safety remains a core priority at Fort Morgan, and Cargill has a longstanding commitment to employee safety in partnership with the union. The contract has long included a joint union-management Safety Committee, made up of union-represented employees and members of management, that meets regularly to help promote a safe work environment and raise awareness of key safety risks.

During negotiations, the union’s only safety-related proposal was to expand the annual $150 work-related footwear voucher to all employees. Cargill’s latest offer included expanding the voucher to employees in roles requiring work-related boots, including shipping, rendering, yards and maintenance.

No other safety topics were raised during negotiations. Cargill continues to invest in employees and the Fort Morgan facility, including employee benefits, housing initiatives and significant facility improvements over the past two years.

Under current operating plans, we do not expect material impacts to customers or producers. Beef processing involves live animal movement and a highly coordinated supply chain, so we have activated continuity plans to minimize disruption and continue serving grocery stores, restaurants and other customers responsibly.

Cargill is using its broader supply chain network to help minimize disruption, support producers, maintain a reliable beef supply and continue honoring commitments to customers. Cattle scheduled for Fort Morgan have been redirected to other Cargill facilities, including Dodge City, Kansas; Schuyler, Nebraska; and Friona, Texas.

We will continue to monitor the situation closely and adjust as needed.