4 Labor Disputes Reshaping Supply Chain Operations Right Now

By Ashley Prince | August 19, 2026

Going into this year, 79% of manufacturers pointed to the ongoing labor shortage as their most significant external challenge, according to the CADDi 2026 Manufacturing Outlook Study. In another study conducted by KPMG this spring, 77% of surveyed leaders identified a talent shortage among their procurement and supply chain teams.

Labor disputes spanning several different verticals have amplified the impacts of these shortages. 

Four different disputes provide a snapshot of the depth and breadth of the labor disputes hitting the industry this summer. Two of these disputes just resolved, one is on a negotiated pause, and one remains active. 

Cargill Fort Morgan: Lockout Ends After 89 days

Cargill locked out more than 1,700 Teamsters Local 455 members at its Fort Morgan, Colorado, beef facility on May 20 after employees rejected the company’s contract proposal, citing the risk of an unplanned stoppage in a live-animal, food-safety-driven operation. A tentative deal reached in late July was voted down by 25 votes, prompting a member-led petition for a revote. On August 17, workers ratified a new five-year agreement.

The company has not set a fixed restart date, framing the return as safety-driven rather than calendar-driven. Employees will complete training and return in phases by production area, with harvesting to resume once training, cattle availability, and operational readiness are confirmed. Cargill says it doesn’t expect material impact to cattle suppliers or customers, having redirected cattle to other facilities during the pause.

Cargill Salt Newark: Second Cargill Labor Fight Opens 

Two hundred miles from any beef plant, a different Cargill labor dispute escalated around the same time Fort Morgan resolved. Earlier this month, 120 members of Teamsters Local 853 walked out on an unfair labor practice strike at Cargill Salt in Newark, California. The facility is one of the only sea salt operations of its kind in North America. 

The union alleges Cargill retaliated against a steward during contract talks, on top of unresolved wage and health insurance issues.

“A billion-dollar company has no excuse to cut the pay and benefits of its workers,” said Steve Beck, Local 853 secretary-treasurer, in the union’s strike announcement. 

No return-to-table date has been announced.

C&H Sugar: Paused, but Not Settled

ILWU Local 6 members struck C&H Sugar’s Crockett, California, refinery on June 15 after the union and company deadlocked on overtime rules, seniority protections, and retiree health benefits. 

The strike also drew a sympathy honor action from ILWU Local 10 longshore workers at the nearby Port of San Francisco. At one point, this left a raw sugar shipment from the Philippines anchored in San Francisco Bay unable to unload.

On July 27, Local 6 and C&H issued a joint statement announcing a 60-day negotiating window running through September 30. Executives from both sides, along with ILWU’s International Officers, agreed to meet regularly during that stretch. 

In a show of good faith, Local 6 returned to work and C&H withdrew its declaration of impasse. Neither side has issued an update since.

INEOS Ashtabula: Still on the Picket Line

The longest-running of the four disputes traces back several months. Teamsters Local 377 and ICWUC Local 1033C workers at INEOS’s Ashtabula, Ohio, titanium dioxide plant unanimously authorized a strike in mid-March ahead of a March 31 contract expiration, then walked out April 13 when talks stalled. 

The union has accused INEOS of surface bargaining and reneging on commitments from the 2022 agreement. Neither the Teamsters nor INEOS has issued a public update since the walkout began, and no ratification or resolution has been announced.

The Industry Impact

For shippers routing around any of these facilities, the disruption is a reminder that single-source and regionally concentrated supply is a standing vulnerability, not a one-time surprise. Fort Morgan is one of the largest beef processing plants in the country. Newark is one of the only sea salt operations of its kind in North America. Ashtabula supplies titanium dioxide used across paint, coatings, and plastics. When a plant like that goes dark, there’s often no easy substitute a few states over.

While these disputes involve different companies and different industries, they all center around common themes. Wage and benefit demands have built up over years of tight labor markets. They are now colliding with companies trying to hold the line on costs. 

For supply chain leaders, this means labor risk needs to be tracked the same way as commodity or freight risk is. Companies should know their suppliers’ contract expiration dates, flag single-source dependencies, and build in supplier redundancy or safety stock where needed.