City of Solvang, Teamsters 986 reach tentative agreement to end strike

By Mike Chaldu · Mon Oct 19 2026

Reveal of contract details, consideration, and ratification to take place at City Council meeting on Oct. 26

The City of Solvang and Teamsters Local 986 announced today that they have reached a tentative agreement, resolving the dispute that led to the recent work stoppage. A city press release stated the parties reached

the agreement at the bargaining table on Wednesday, Oct. 14.

Members of Teamsters Local 986 soon after approved and ratified the tentative agreement, which is subject to ratification by the City Council at its Monday, Oct. 26 meeting. The city will make the agreement's

details public during the council's consideration.

Both the city and the Union thank the city's employees for their daily work in service to this community and for their dedication throughout a difficult process. They also thank Solvang's residents, businesses,

and visitors for their patience throughout the dispute.

“This is good news for our employees and our community,” said Mayor David Brown. “We are grateful to everyone who helped us get here, and we are glad to move forward together in service to Solvang.”

Jeff Lee, a business representative for Teamsters Local 986 praised the workers for their dedication throughout the contract dispute.

“This agreement is a testament to the determination and solidarity of the hardworking men and women who serve the City of Solvang," he said. "For nearly a month, these employees stood together, not just for

themselves, but for the principle that public service deserves to be valued and respected. I could not be prouder of our members for their courage, their commitment to one another, and their willingness

to stand up for what they believe in. We appreciate the City’s willingness to work toward a resolution and look forward to moving ahead together with a renewed commitment to the employees and the community they proudly serve,”

With an agreement in place, both parties will focus on rebuilding the working relationship in service of the Solvang community, the city statement said.

The resolution of the dispute came 29 days after 31 city workers walked off the job Sept. 15 over what they considered insufficient cost-of-living increases.

The strike happened after several months of negotiations dating back to April of this year. According to a report submitted by Solvang Assistant City Attorney Dave Fleishman, the city and union met on at least eight occasions beginning in April, with each party exchanging proposals for a new labor agreement. The last labor agreement with the union expired on June 30.

Despite multiple proposals from each party, the parties were unable to reach agreement, and on June 24, the city presented the union its last, best, final offer (LBFO). The city’s LBFO consisted of a three-year agreement, with cost-of-living increases of 4% each year of the agreement, and equity adjustments recommended for three positions in an independent compensation and class study prepared by Regional Government Services. The union countered with a 6% raise.

After the sides couldn't agree on the numbers on Sept. 14, the city put the matter up to a public hearing at the Monday, Sept. 14, meeting, which saw the City Council pass a one-year 4% raise with a unanimous vote.

The workers then walked off the job the next day, picketing in front of Solvang Park, as well as in front of the City Council Chambers entrance and Parks and Rec building. The workers even marched as official entrants in the Danish Days Parade on Sept. 19.

An attempt to end the strike on Friday, Oct. 2, after a 6-5-4 (6% increase first year, 5% second, and 4% third) was voted down by the workers. The union requested 6-6-6.

At the subsequent City Council meeting on Monday, Oct. 12, City Attorney Chelsea O'Sullivan announced that the council granted add authority to negotiators, and directed them to proceed with additional talks. The deal was reached two days later.

City Council will meet on Monday, Oct. 26, with open session starting at 6:30 p.m.