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Union contracts for local government agencies may last up to three years or longer. During negotiations for a new agreement, issues may arise that require discussion and agreement between the agency and the union, even while the existing contract is in effect. These mutual agreements are often formalized through a Memorandum of Understanding (MOU), which serves as an amendment to the collective bargaining agreement. The MOU addresses specific issues that emerge during the contract term and reflects the mutual understanding of the parties involved. Memorandums of Understanding may also be referred to as Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Typically, an MOU is preferred over redrafting an existing union contract.
