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Union contracts for local government agencies can last up to three years or more, and during negotiations for a new agreement, issues may arise that require discussion between the agency and the union. To address these issues, parties can create a Memorandum of Understanding (MOU), a formal signed amendment to the collective bargaining agreement. The MOU typically covers specific issues that developed during the contract’s term and signifies the mutual understanding between both parties. Other terms for an MOU include Memorandum of Agreement (MOA), Letter of Understanding (LOU), and Letter of Agreement (LOA). Instead of redrafting the entire contract, employers and unions often prefer to draft an MOU to address issues.
