City Shares Contract Offer as Labor Negotiations Continue

September 9, 2026 - The City of Corvallis has provided its final contract offer to the state’s Employee Relations Board, as required under the current timeline for negotiations between the City and the American Federation of State, County and Municipal Employees (AFSCME). The contract is available for review on the Employee Relations Board website at https://www.oregon.gov/erb/Pages/FinalOffer.aspx

The three-year contract reflects the final analysis of costs in several key categories, including compensation increases and health care cost sharing.

The contract includes a 12% cost of living (COLA) increase for employees over three years. 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. The contract proposal totals more than $7.8 million over three years.

AFSCME declared impasse on September 1 and undertook a strike authorization vote. The City’s contract with AFSCME covers about 246 represented employees across all departments. The previous contract expired on June 30, 2026.

Both parties are now entering a 30-day cooling-off period. After that, the union is eligible to declare a strike as early as October 9.

The City and the union have been working since January on a new contract for the City’s employees represented by AFSCME. The two parties are scheduled to meet again in mediation on September 10 with the state’s Employee Relations Board (ERB).

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 budget gap includes $4 million annually in operating costs and $16 million to address facility needs that have been unfunded for decades. 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.