Meatpacking workers at the Cargill plant in Fort Morgan rejected a tentative agreement reached last week with the company, extending the three-month labor dispute that has threatened to cripple the local economy.
Read more France is banning unsolicited telemarketing calls starting next week
The union representing 1,700 Cargill workers agreed last week to a deal with the company, but ratification remained contingent on a full vote from its members.
On Monday, laborers voted 749-724 against the proposal.
The company moved money to the front of the contract term, but members “did not believe it was enough,” said Chris Suazo, a Teamsters Local 455 business agent, via text message.
The union, he said, remains open to resuming negotiations.
In a statement, Cargill said the company is “disappointed that employees voted against the union-recommended settlement. We are evaluating next steps and options and remain open to considering proposals from the union that align with the economic framework previously discussed.”
Read more Trump’s immigration crackdown has detained more than 50 military spouses and parents
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.
Fort Morgan city officials had breathed a sigh of relief last week when the two sides reached the tentative agreement. The city manager, Brent Nation, previously told city leaders that utility revenue from the plant had plummeted since the lockout, prompting citywide budget cuts, hiring freezes and the prospect of layoffs.
A deal to end the lockout, Nation told The Denver Post last week, would allow the city to return to a more normalized budgeting scenario and avoid cutting staff.
Read more Fauci’s decision to invoke the Fifth Amendment tees up a legal debate and a contempt vote
Get more business news by signing up for our Economy Now newsletter.
