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Union contracts for local government agencies can last up to 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. These discussions can lead to mutual agreements documented through a Memorandum of Understanding (MOU). An MOU is a formal signed agreement that amends the collective bargaining agreement, addressing specific issues that occur during the contract's term. It reflects the mutual understanding between the parties. MOUs may also be referred to as MOAs (Memorandums of Agreement), letters of understanding (LOUs), or letters of agreement (LOAs). Instead of redrafting the entire contract, employers and unions typically prefer to create an MOU.
