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Union contracts for local government agencies can last three years or longer, during which time issues may arise that necessitate discussions between the agency and the union. These discussions can lead to mutual agreements, typically formalized through a Memorandum of Understanding (MOU). An MOU serves as an amendment to the collective bargaining agreement and addresses specific issues that develop during the contract term. It reflects the mutual understanding between the parties regarding these issues. MOUs may also be referred to as Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Rather than redrafting the existing contract, employers and unions usually opt to create an MOU.