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Union contracts for local government agencies can last up to three years or longer. During negotiations for new agreements after a contract expires, issues may arise that require discussions between the agency and the union. These discussions often lead to a Memorandum of Understanding (MOU), which is a formal signed agreement amending the collective bargaining agreement. The MOU typically addresses specific issues that emerged during the contract’s term, reflecting the mutual understanding between the parties. MOUs are also referred to as Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Instead of redrafting the entire union contract, employers and unions usually opt to create an MOU.
