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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 discussion and agreement between the agency and the union. These adjustments can be formalized through a Memorandum of Understanding (MOU), which serves as an amendment to the collective bargaining agreement. An MOU addresses specific issues that arise during the contract term and reflects the mutual understanding of the parties involved. Other terms for a similar agreement include Memorandum of Agreement (MOA), Letter of Understanding (LOU), or Letter of Agreement (LOA). Typically, parties opt for an MOU rather than redrafting the entire existing union contract.