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Union contracts for local government agencies can last three years or more, during which negotiations for new agreements may occur. While a contract is active, issues may arise that require discussions between the agency and the union. These are typically resolved through a Memorandum of Understanding (MOU), a formal agreement that modifies the collective bargaining contract. The MOU addresses specific issues that come up during the contract's term and reflects the parties' mutual understanding. MOUs are also referred to as Memorandums of Agreement (MOAs), letters of understanding (LOUs), or letters of agreement (LOAs). Instead of redrafting a contract, employers and unions generally opt to create an MOU.