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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 between the agency and the union. To address these issues while the contract is still in effect, they can create a Memorandum of Understanding (MOU), a formal signed agreement that amends the collective bargaining agreement. The MOU addresses specific concerns that arise during the contract period and reflects the mutual understanding between both parties. Other terms for this document include Memorandum of Agreement (MOA), Letter of Understanding (LOU), or Letter of Agreement (LOA). Instead of redrafting the existing contract, employers and unions use MOUs to address new issues.