The Dalles City Council unanimously approves new three-year labor contract

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Jul 30

The Dalles, Ore., July 28, 2026 — The Dalles City Council unanimously approved a new three-year collective bargaining agreement Monday, July 27, with Service Employees International Union Local 503, ending months of negotiations with a contract that provides an immediate 3% cost-of-living raise and inflation-based wage increases through 2029.

The agreement covers employees in Public Works, the library and City Hall. Patrol officers are represented by a separate bargaining unit.

Library employee Kristen Dyer, reading a statement to Councilors in June on behalf of coworker Abby Phelps. She said city employees were 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.

The decision comes about a month after represented city employees urged the council to approve above-average wage increases, saying inflation had eroded their purchasing power and made it increasingly difficult for the city to recruit and retain qualified workers.

The agreement, which takes effect retroactively to July 1 and runs through June 30, 2029, provides an immediate 3% cost-of-living adjustment for the current fiscal year, followed by annual increases tied to the Consumer Price Index ranging from 2.5% to 5% during each of the following two years, City Manager Matthew Klebes said.

Is This Unusual? Not Really.

The city's 3% cost-of-living increase is broadly in line with other inflation adjustments approved nationwide. Social Security and Supplemental Security Income beneficiaries received a 2.8% cost-of-living adjustment for 2026, while active-duty military personnel received a 3.8% pay raise. The Oregon Minimum Wage also increased this july between 3 to 3.6 percent depending on where an employee lives.

Klebes said the city budget for fiscal year 2026-27 anticipated the outcome of the bargaining process and includes sufficient funding to cover the agreement. He said the city has not yet calculated the contract's total annual cost because the final fiscal impact will depend on variables such as employee turnover, but those figures are expected to become available.

More skills, more pay

Beyond wage increases, the contract establishes bilingual pay differentials for employees who use Spanish in the course of their work, particularly Public Works employees who regularly interact with Spanish-speaking residents during water, street and other infrastructure projects.

Mechanics also will receive additional incentive pay tied to professional certifications, allowing employees who earn qualifications to work on different aspects of diesel engines to receive higher compensation.

Added Paid Holiday

The contract also adds Indigenous Peoples' Day in October as a paid holiday, increases vacation accrual for long-term employees, provides a shoe stipend for library employees and expands clothing and boot allowances for eligible workers.

Klebes said the contract also gives additional vacation hours to employees who have given 20 plus years of service to the city. They will go from 180 hours per year to 204. Previously, employees received no additional vacation time after their 15th year of service.

“It’s another way for the city to recognize long-term service,” Klebes said.

SEIU Local 503 characterized the agreement as a significant “victory”, saying members preserved their health insurance benefits and secured the wage increases. The union also credited members for attending bargaining sessions and City Council meetings throughout negotiations.

Klebes described the negotiations as collaborative.

"We're pleased with the outcome and believe it reflects a balanced approach," Klebes said. "We care about our employees and want to be a positive workplace environment that supports retention, collaboration and long-term success."