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Union contracts for local government agencies can last up to three years or more, and during negotiations for a new agreement after a contract expires, issues may arise that require discussion and mutual agreement. These discussions are often formalized through a Memorandum of Understanding (MOU), which acts as an amendment to the collective bargaining agreement, addressing specific issues that emerged during the contract term. An MOU reflects the mutual understanding between the agency and the union. It may also be referred to as a Memorandum of Agreement (MOA), Letter of Understanding (LOU), or Letter of Agreement (LOA). Instead of redrafting existing contracts, employers and unions typically draft an MOU to resolve these matters.