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Union contracts for local government agencies can last up to three years or more, and during negotiations for a new agreement after a contract expires, certain issues may arise that need mutual discussion between the agency and the Union. These discussions can result in a Memorandum of Understanding (MOU), which is a formal signed agreement that amends the existing collective bargaining agreement. An MOU addresses specific issues that have emerged during the contract term and reflects the mutual understanding between the parties. MOUs may also be referred to as Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Instead of redrafting the entire contract, employers and unions typically create an MOU to address these issues.