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Union contracts for local government agencies can last up to three years or more. During negotiations for a new agreement, issues may arise that require discussion and mutual agreement between the agency and the union while the current contract is still in effect. These agreements are 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. MOUs may also be referred to as Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Instead of redrafting the contract, employers and unions typically opt to create an MOU.