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Union contracts for local government agencies can last up to three years or more. 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 mutual agreements are usually formalized through a Memorandum of Understanding (MOU), which acts as an amendment to the collective bargaining agreement. MOUs address significant issues that emerge during the contract's term and reflect the shared understanding of both parties. Other terms for MOUs include Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Generally, instead of redrafting the entire contract, employers and unions prefer to create a Memorandum of Understanding.