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Union contracts for local government agencies can last three years or more, and during negotiations for a new agreement, issues may arise that necessitate discussions between the agency and the union. These discussions often result in a Memorandum of Understanding (MOU), which is a formal signed agreement that amends the existing collective bargaining agreement. The MOU addresses specific issues that occur during the contract term and reflects the mutual understanding of both parties on those matters. MOUs may also be referred to as Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Instead of redrafting the entire contract, employers and unions typically create an MOU to address these concerns.
