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Union contracts for local government agencies can last up to three years or more, requiring negotiations for new agreements once a contract term ends. While contracts remain active, issues may arise that necessitate discussions between the agency and the union. These discussions can lead to mutual agreements formalized through a Memorandum of Understanding (MOU), which amends the collective bargaining agreement. An MOU typically addresses specific issues that arise during the contract's term and reflects the parties' mutual understanding. Similar terms for MOUs include Memorandum of Agreement (MOA), Letter of Understanding (LOU), and Letter of Agreement (LOA). Rather than redrafting contracts, employers and unions generally prefer to create an MOU to address necessary changes.