The union representing Solvang employees declared an impasse after the workers rejected the city’s proposed pay hike and the employer has refused to proceed to mediation.

With talks stalled, the City Council plans to conduct a public hearing on Sept. 14 to discuss whether it should implement the 4% increase for workers represented by Teamsters Local 986 to avoid further delays.

Solvang leaders offered Teamsters members working for the city an annual 4% cost-of-living increase for the next three years, as well as adjustments for three positions, which were “consistent with or exceeds increases offered this year by comparable agencies in the county,” according to Olivia Uribe Mutal, assistant to the city manager.

The adjustments were determined by recommendations in an independent compensation and classification study by an outside consultant.

“The city believes its offer is fair to employees while maintaining a balanced budget and sustaining funding for current and future services,” Mutal said in a press release.

“The city values its represented employees and remains committed to maintaining a positive working relationship with them. The city’s dedication to improving the quality of life for both its workforce and the Solvang community remains unchanged.”

Union members unanimously voted to reject the offer, according to Jeff Lee, business representative for Teamsters Local 986.

The union represents about 30 Solvang city workers.

Lee pointed toward a “substantial disparity” between the raises provided to non-represented staff and employees represented by the Teamsters.

“There’s being told no, and then there’s being told that you’re not going to get the raises that (non-represented employees) got, and then giving them additional raises on top of that,” Lee said. “That’s a pretty resounding message to send back.”

According to Lee, the city rejected the union’s request for mediation. However, he said the union is still looking to “work things out.”

“(Represented employees) are simply trying to maintain the cost of living that has kind of been eroded to them over the years, and continue to work in Solvang and raise their families in the area, and be a part of the community,” he said.