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Union contracts for local government agencies can last three years or more, during which issues may arise necessitating discussions between the agency and the union. While the existing contract is in effect, mutual agreements can be reached through a Memorandum of Understanding (MOU), a formal signed agreement that amends the collective bargaining agreement. MOUs address specific issues that arise during the contract's term and reflect the mutual understanding of both parties. MOUs are also referred to as Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Rather than redrafting a contract, employers and unions typically opt to create an MOU.