Three labor unions are negotiating contracts that will establish pay, benefits and working conditions for 2,000 City of Portland employees – and shape the city’s budget for years to come.
This trio of contract decisions coincides with transformational change for Portland. This fall, Portlanders will elect a new mayor and expanded city council to take office in January in a new form of government. Meanwhile, city leaders are planning cuts to the upcoming budget because revenues are not keeping up with expenses.
“Portlanders are counting on us to deliver services and solve problems within our means,” Mayor Ted Wheeler said. “I believe we can honor community expectations, while also honoring the service and expertise of the city’s represented employees.”
Five guiding principles serve as anchors for the City of Portland’s labor negotiations.
- Respect: Honor employees’ service and expertise by providing fair compensation, benefits and working conditions.
- Workforce competition: Attract and retain a talented, diverse workforce.
- Financial stewardship: Make the most of taxpayers’ resources to make Portland safe, healthy and livable.
- Shared responsibility: Ensure that all employees share equitably in the impacts of economic factors outside the City’s control.
- Rules and regulations: Follow laws and best practices for labor negotiations.
Negotiations will be active over the next few months, as the city follows the State of Oregon’s bargaining process. Before requesting mediation, parties are required to bargain for at least 150 days — a milestone that all three unions have passed. Two have requested mediation.
If an agreement cannot be reached during mediation, the next steps include declaring an impasse, exchanging final offers and going through a 30-day “cooling off period.” After that, union members could vote to strike and the City could implement its final offer. The three groups in active negotiations would reach that point in early 2025.
American Federation of State, County and Municipal Employees Local 189 (AFSCME 189)
Membership
- 1,060 members across most city bureaus
- Average total earnings: $87,251
- Average total compensation: $138,529
- Largest membership numbers: Water, Transportation, Police, Permitting & Development, Budget & Finance
Contract Status
- New contract independent of DCTU
- 11 bargaining sessions between May and Oct. 21
- Passed 150 days of required bargaining Oct. 11
- Union requested mediation
- First mediation session scheduled Dec. 12
- Bargaining sessions continuing
City of Portland Professional Workers (CPPW)
Membership
- 770 members across most city bureaus
- Average total earnings: $102,305
- Average total compensation: $158,850
- Largest membership numbers: Parks, Transportation, Environmental Services, Police, Water, Budget & Finance
Contract Status
- City’s newest bargaining unit
- 14 bargaining sessions between March and September
- Passed 150 days of required bargaining Aug. 1
District Council of Trade Unions (DCTU)
Membership
- 190 members
- Average total earnings: $101,625
- Average total compensation: $157,932
- Largest membership numbers: Fleet and Facilities, Water, Environmental Services, Permitting & Development, Transportation and Parks
Contract Status
- Contract expires Dec. 31
- 12 bargaining sessions between April and Oct. 21
- Passed 150 days of required bargaining Sept. 15
- First mediation session scheduled Nov. 14
- Weekly bargaining sessions continuing
Any additional money committed to labor contracts will deepen spending reductions needed to balance the city’s next budget – including potential cuts to jobs and community services.
The Portland City Council will have a work session Tuesday, Oct. 22 to discuss the financial forecast and preview the difficult choices ahead for the budget year that begins July 1.
Some of the City’s largest revenue sources are projected to be lower than prior forecasts. Development permits, parking fees and gas tax dollars have declined from prior peaks, while other sources are growing more slowly than anticipated. Temporary funding is expiring, including pandemic-era American Rescue Plan dollars.
Meanwhile, health benefit rates continue climbing. Construction costs are up. Funds are committed to essential capital projects such as replacing the aging City Fleet headquarters. And the city is responsible for legal obligations, including increased costs under a settlement with the U.S. Department of Justice regarding police use of forceand a new Flood Safety Benefit fee to support the Columbia River levee project.
Following this week’s work session, Wheeler will issue preliminary guidance for the City Administrator’s Office and the City’s six service areas – requiring cuts to balance the fiscal year 2025-2026 budget. In February, the city’s executive leaders will propose a “trial budget”for community feedback.
Portland’s new mayor and 12-member city council will make final decisions about the City’s budget and will have to factor in any increased costs due to labor negotiations. They take office at the beginning of 2025, as both processes approach crucial milestones.
“We are working hard to set up Portland’s future leaders for success,” said City Administrator Michael Jordan. “Elected officials will have the information they need to make thoughtful, strategic decisions about Portland’s financial commitments as they balance the needs of our employees and our community.”