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Union contracts for local government agencies can last up to three years or more, during which negotiations for new agreements may occur. While a contract is active, issues can arise that require discussions between the agency and the union. Such discussions often result in a Memorandum of Understanding (MOU), a formal signed agreement that amends the existing collective bargaining agreement. The MOU addresses specific issues that surfaced during the contract term and reflects the mutual understanding of both parties. Other names for an MOU include Memorandum of Agreement (MOA), Letter of Understanding (LOU), or Letter of Agreement (LOA). Instead of redrafting the entire contract, an MOU is typically created to address these matters.