Labor Negotiations Ongoing as Union Declares Impasse

September 1, 2026 - Labor negotiations between the City of Corvallis and the American Federation of State, County and Municipal Employees (AFSCME) have entered a new phase after the union declared impasse on September 1. The declaration comes a few days after the union took a strike authorization vote. The City and the union have been working since January on a new contract for the City’s employees represented by AFSCME. The two sides are scheduled to meet again in mediation on September 10 with the state’s Employee Relations Board (ERB).

The City’s contract with AFSCME covers about 246 represented employees across all departments. The previous contract expired on June 30, 2026.

Last month, the City presented a contract offering an increase of more than $8.4 million over three years, which represents a 12% cost of living (COLA) increase for employees. COLAs are in addition to six annual step increases of 5% for eligible employees. In the last year of the contract, the City proposed increasing the employee cost share for medical and dental insurance from 7% to 10%, an increase of approximately $26 per month for a full-time employee. This would bring AFSCME’s cost share for healthcare insurance into alignment with other employee groups. AFSCME is one of 4 different unions across the City.

The declaration of impasse is a required step before the union can declare a strike. Following a declaration of impasse, the City and the union are required to provide final offer costing to ERB. The parties then enter a 30-day cooling-off period. After that, the union is eligible to declare a strike as early as October 9.

The complicated labor negotiations come at a pivotal time for the City of Corvallis, which is facing a $20 million budget gap that will impact core services as early as 2027. The City Council is currently exploring new revenue options to close the gap and preserve public safety and community livability services. Key considerations for any new revenue measure include balancing the financial impact on the Corvallis community, particularly lower income households and individuals.

For more information on labor negotiations, contact Mary Beth Altmann Hughes at 541-766-6902 or marybeth.altmannhughes@corvallisoregon.gov.