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Union contracts for local government agencies can last up to three years or longer, during which negotiations for a new agreement may occur once a contract expires. During this period, issues can arise that necessitate discussions between the agency and the Union. These discussions often result in a Memorandum of Understanding (MOU), a formal signed document that amends the collective bargaining agreement. An MOU addresses specific issues that arise during the contract's term and illustrates the mutual understanding of both parties regarding that issue. MOUs can also be referred to as MOAs (Memorandums of Agreement), letters of understanding (LOUs), or letters of agreement (LOAs). Rather than completely redrafting a contract, employers and unions typically create an MOU.