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Union contracts for local government agencies can last three years or longer. During negotiations for a new agreement after a contract expires, issues may arise that require discussions between the agency and the Union. To address these, they often use a Memorandum of Understanding (MOU), which is a formal signed agreement that amends the collective bargaining agreement. The MOU addresses specific issues that emerge during the contract term and reflects the mutual understanding between the parties. 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 opt to create an MOU.
