City Employees Push for 'Above Average' pay hike as inflation pounds disposable income

The Dalles, Ore., June 25, 2026 — City employees urged The Dalles City Council to support higher wages during ongoing contract negotiations Monday at the councils regular meeting, arguing that rising inflation and an increasingly competitive labor market have made it difficult to recruit and retain skilled workers.

City mechanic Jordan Pesce speaks to council about increasing wages for city employees on Monday, June 22.

Employees said a 5 % raise was necessary just to keep pace with inflation.

Speaking on behalf of members of the Service Employees International Union, Public Works mechanic Jordan Pesce said employees responsible for maintaining the city's streets, drinking water and wastewater systems perform highly skilled work that deserves compensation above market averages.

"Average wage won't cut it," Pesce told the council. "We are asking for above average wages because we perform above average work and carry out above average responsibilities."

Pesce said the city has struggled to hire certified operators and has instead relied on training inexperienced employees while losing skilled workers to employers offering higher wages and better benefits. He also pointed to the recent 8.2% salary increase approved for City Manager Matthew Klebes, saying it highlighted a disparity between management and union wage increases.

Library employee Kristen Dyer, reading a statement on behalf of coworker Abby Phelps, said city employees are also feeling the effects of everyday inflation. She cited higher grocery, fuel, electricity and housing costs, noting that rents in The Dalles increased about 7% between 2024 and 2025 while average home prices rose roughly 11% during the same period.

Using federal inflation data, Dyer said a step-one library technical assistant would need nearly $300 more per month — a 5.56% wage increase — simply to maintain the same purchasing power under the current contract. She argued that the proposed 2.7% cost-of-living adjustment would effectively reduce employees' buying power.

"We love this town. We love serving our community," Dyer said. "We want to be able to afford to continue living here and continue serving the people who depend on us."

Union members presented council with a petition signed by employees asking city leaders to approve higher wages as labor negotiations continue.

Here is the link to the current SEIU salaries posted on the City of The Dalles website.