The Cargill meatpacking plant and a union representing nearly 2,000 of its workers in Fort Morgan this week reached a tentative agreement that would end a monthslong labor dispute that has threatened to cripple the local economy.
The company and the union, Teamsters Local 455, reached a recommended settlement for a new labor agreement on Tuesday, Cargill officials said in a statement. The settlement is subject to ratification by union members, with a vote expected early next week. The company did not disclose the terms of the agreement.
Union officials did not immediately respond to a request for comment.
The plant has been largely dark since April, when Cargill stopped beef production amid contentious contract negotiations with the union. In May, the Minnesota-based company locked out its workers.
The two sides remained far apart for months as they volleyed proposals. Local 455 officials said Cargill refused to budge on minimal wage increases, even as the company reported staggering profits. Company representatives, meanwhile, said their proposal offered more than $33 million in investments in its workforce.
Lockouts, once unheard of, have in recent years represented a significant portion of work stoppages as federal courts and the National Labor Relations Board have expanded their permissible use, experts told The Denver Post this month.
In Fort Morgan, where roughly 20% of the population works at the Cargill plant, the lockout prompted citywide budget cuts, hiring freezes and the prospect of layoffs. The city manager, Brent Nation, previously told The Post that utility revenue from the plant has plummeted since the dispute, and he warned city officials this summer that a permanent plant closure would chop 15% from Fort Morgan’s annual budget.
Nation, in an interview Thursday, said he’s cautiously optimistic about the announcement, saying the city can move forward with a “more normalized budgeting scenario.”
He said he no longer foresees any city layoffs, though the lockout did cost Fort Morgan an estimated $3 million to $5 million in revenue. The city hopes to make up that deficit through controlled spending for the remainder of this year, Nation said.
Cargill workers have been picketing throughout downtown Fort Morgan and outside the plant for months, holding signs that read: “The steaks are high.”
Laborers previously told The Post that they worried during the stoppage about losing one of the only decently paying jobs in northeast Colorado, even though the gig was difficult, dangerous work.
