New allegations against Cargill as Colorado beef-plant lockout enters week 4
More than three weeks into a labor dispute at Cargill’s Fort Morgan, Colorado, beef processing facility, Teamsters Local 455 has filed unfair labor practice charges against the company, alleging Cargill unlawfully cut off workers’ access to pay and benefits during an ongoing lockout affecting more than 1,700 employees.
The charges were announced June 10 by Teamsters Local 455.
The labor dispute stems from contract negotiations between Cargill and Teamsters Local 455. According to union officials, the previous contract expired Feb. 22, and members rejected Cargill’s most recent contract proposal on May 19. Cargill initiated a lockout on May 20, citing concerns over a potential work stoppage.
“Cargill is hurting working families in Fort Morgan by illegally cutting benefits and refusing to pay its own workforce after now locking them out for multiple weeks,” said Dean Modecker, secretary-treasurer of Teamsters Local 455, in a statement released by the union. “These charges make clear that Cargill cannot ignore the law. It’s time for the company to stop stalling and return to the bargaining table.”
The Fort Morgan facility, one of Colorado’s largest beef-processing plants with a capacity of approximately 4,700 cattle per day, has not been harvesting cattle since April 23 amid the contract dispute.
Cargill defended its decision to lock out workers, saying it was intended to protect operations and employee safety during an uncertain bargaining environment.
“A lockout was not the outcome Cargill wanted, but after months of bargaining and continued uncertainty around the union’s threatened work stoppage, we made the difficult decision to lock out to ensure facility, employee, and food safety,” a company spokesperson told Drovers and other industry media outlets.
The company also said it remains committed to negotiating a new agreement.
“Cargill remains active in and willing to negotiate in good faith, and we remain committed to reaching a sustainable agreement with the union,” the spokesperson said.
According to Just Food, Cargill said it could not comment directly on the unfair labor practice allegations until it receives official notice from the National Labor Relations Board.
In addition to the labor charges, Teamsters representatives have raised concerns about antitrust issues involving large meat processors. The union pointed to previous lawsuits involving major beef packers, including a recently reported $32.5 million settlement by Cargill in a beef price-fixing case, while noting that the company denied wrongdoing.
“The beef cartel, comprised of Cargill, Tyson, and a couple other companies, have already been sued for violating antitrust laws for price fixing and ripping off consumers,” said Jesse Case, director of the Teamsters Food Processing Division, in the union’s statement. “Now they’re conspiring to fix labor rates. These large meat packers are monopolies that need to be broken up if they can’t recommit to the communities that helped make them successful.”
Cargill has not publicly responded to those specific allegations.
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