Workers at a Cargill beef processing plant in Fort Morgan, Colorado, voted on Monday to end a labor dispute that had halted cattle slaughtering operations since April. The agreement, announced by both the company and the union, allows for the reopening of a facility that employs approximately 1,700 people.
The dispute began in April when Cargill suspended cattle slaughtering at the Fort Morgan site due to a disagreement over pay. In May, the company stopped paying the plant's employees. The closure occurred during a broader period of volatility in the U.S. beef industry, characterized by record-high consumer prices and the nation’s cattle herd reaching its smallest size in 75 years.
Dean Modecker, head of the Teamsters Local 455 union, stated that members voted overwhelmingly to return to the facility and that the new agreement will hold. According to Cargill, employees are scheduled to return to the plant around August 24. Cattle slaughtering operations at the facility are expected to resume during the week of September 7.
The scale of the disruption reflects broader economic pressures on the U.S. meatpacking sector. Other companies, including Tyson Foods, have recently announced the closure or sale of beef facilities as the cost of live cattle rises faster than the price of finished meat. For consumers, the Fort Morgan plant's return to service adds slaughter capacity back to a market where the national cattle herd is at its lowest level since 1951, which has contributed to record-high retail beef prices this year.
The return to work will occur in phases, with the initial staff returning on August 24 followed by a full resumption of slaughtering two weeks later. This schedule sets a precedent for how idled meatpacking facilities might resume operations following prolonged pay disputes. The next milestone for the facility and its workforce will be the week of September 7, when the plant is expected to reach operational status for cattle processing.