Workers at a meatpacking plant in Fort Morgan on Monday overwhelmingly approved a new contract from their employer Cargill Meat Solutions, which had locked out more than 1,700 employees since May 20.
The results were the opposite of an employee vote earlier this month, and ended the dispute between the Teamsters Local 455 and Cargill, the nation’s largest private company and one of the largest meat processors in the country. According to union leaders and the company, Cargill will bring workers back in phases over the next 30 days with the first returning on August 24.
“It was just a different feeling today,” Dean Modecker, secretary-treasurer of Local 455, said Monday. “Two weeks ago, when we voted, I feel the anger was still there. And then after two weeks of looking at the deal, I believe people just realized it’s time to go back to work. Since we’re not hiding anything, I’m sure you heard, just like we did, that Tyson Beef shut down a plant. So again, we just work for a living, and I think at this point people are just, ‘Time to go back to work.’”
The old contract expired in February and negotiations continued until May 20, a day after workers rejected a new contract. The company locked the doors to avoid “safety and operational risks with an unplanned production stoppage,” the company said. Workers hadn’t voted to strike but Cargill proactively closed the plant and rerouted cattle to processing facilities in other states.
“Cargill is pleased that employees represented by Teamsters Local 455 have voted to ratify a new labor agreement for our Fort Morgan beef facility,” the company said in an emailed statement on Monday. “Following an extended pause, employees will receive the training and support needed to return safely, while teams ensure the facility is ready to resume production. Employee safety, food safety and operational readiness will guide every step of the process. We look forward to welcoming employees back and moving forward together.”
As a major employer and contributor to the local tax base, Cargill’s lockout left many in the community anxious about whether the meat company would stick around.
“For more than two months, this dispute has placed an enormous burden on local businesses, cattle producers, workers, and the entire Fort Morgan community,” said state Sen. Byron Pelton, a Republican from Sterling in an email. “I have always believed that the people who live and work here understand what is at stake better than national organizations or outside voices. They know that the long-term future of this plant matters.”
There were a number of reasons why the lockout continued as long as it did even after it seemed like union negotiators and Cargill had finally agreed on a tentative deal in late July.
The union paid workers $1,250 a week in the first two months of the lockout, a sum that was higher than normal because the Teamsters international and executive board chipped in. But the amount was lowered a few days after workers voted against the contract on Aug. 3. Strike pay was reduced to $125 a week plus five times what members paid in dues. In addition, language barriers within the diverse workforce is believed to have caused confusion about what the vote was about. The Aug. 3 vote lost by just 25 votes, Modecker said.
The close vote motivated some workers to collect more than 1,000 signatures asking for a revote, which is what happened Monday. About 1,200 Cargill workers voted in favor of the contract while about 200 rejected it. The remaining 300 members chose not to vote, he said. That’s a big change from the May vote when 85% of union members rejected the contract.
Union employees ratified a five-year contract that increased the range of the average first-year hourly wage to $24.20 to $32.10, depending on the role. Base wages under the old contract started at $23.50, according to Cargill.
“There were plenty of (improvements) to working conditions,” Modecker said. “We had numerous language changes … so that our people with seniority can actually do the jobs they want. We’ve got safety language now implemented, and we’ve got bathroom breaks. Things like that.”
A Cargill spokesperson previously said breaks were scheduled and workers just follow a process to request restroom access outside of the scheduled breaks.
The meatpacking industry has been operating at a loss in recent years due to strong demand but less supply, according to the Meat Institute, a trade group that represents the nation’s largest meat packers. Ranchers facing drought amid rising feed and operating costs for years have downsized their herds. There’s also GLP-1 weight loss drugs that limit how much food users consume. Research shows they’re opting for more protein-rich meat snacks. And the U.S. has no shortage of millionaires or influencers who can afford to pay higher prices. It’s the imbalance of supply and demand that is pushing prices higher.
Modecker said the push for a higher wage for the Colorado workers was to reflect the higher cost of living compared with other states, where labor unions have ratified contracts.
“We had made it very clear that we know the employers and they’re hurting, and we were willing to work with them. What we didn’t want to do was tie our hands the fourth and the fifth (years), but unfortunately, that’s where the company stuck strong,” he said. “We’re hoping they’re profitable, but in the next three years, if they become profitable, hopefully they reopen that contract and give these people what they deserve.”
This story previously appeared in the Colorado Sun.
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