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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 ends, issues may arise that require discussions between the agency and the union. These discussions often result in a Memorandum of Understanding (MOU), which is a formal agreement that amends the collective bargaining agreement. An MOU typically addresses significant issues that arise during the contract's term and represents the mutual understanding between the parties involved. MOUs may also be referred to as Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Instead of redrafting the existing contract, employers and unions usually opt for an MOU.