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Union contracts for local government agencies can last three years or more, during which time issues may arise that require negotiation. While a contract is in effect, mutual agreements between the agency and the union can be addressed through a Memorandum of Understanding (MOU). An MOU is a formal signed document that amends the collective bargaining agreement and typically addresses significant issues that emerge during the contract's duration. This document reflects the mutual understanding between the parties and may also be referred to as a Memorandum of Agreement (MOA), Letter of Understanding (LOU), or Letter of Agreement (LOA). Rather than redrafting an existing contract, employers and unions usually opt to create an MOU.