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Union contracts for local government agencies can last up to three years or more, during which time negotiations for a new agreement may take place. While the current contract is in effect, issues may arise that necessitate discussions between the agency and the union. These discussions can lead to mutual agreements through a Memorandum of Understanding (MOU), which is a formally signed document that amends the collective bargaining agreement. The MOU typically addresses significant issues that emerge during the contract's duration and reflects the mutual understanding on those matters. Other terms used for MOUs include Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Unlike redrafting the existing contract, parties often prefer to create an MOU.