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Union contracts for local government agencies can last up to three years or longer, leading to negotiations for new agreements once a contract term ends. During this period, issues may arise that necessitate discussions between the agency and the Union. These discussions often result in a Memorandum of Understanding (MOU), a formal signed document that amends the existing collective bargaining agreement. The MOU addresses specific issues that arise during the contract’s term and reflects the mutual understanding between the parties. MOUs can also be referred to as MOAs (Memorandums of Agreement), letters of understanding (LOUs), or letters of agreement (LOAs). Rather than redrafting a contract, employers and unions typically opt to create an MOU.
