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Union contracts for local government agencies can last up to three years or more, requiring negotiation for new agreements after expiration. During this period, issues may arise that necessitate discussions between the agency and the union. These discussions often result in a Memorandum of Understanding (MOU), a formal agreement that amends the existing collective bargaining agreement. An MOU addresses specific issues that arise during the contract term and reflects the mutual understanding between the parties involved. Other terms for an MOU include Memorandum of Agreement (MOA), Letter of Understanding (LOU), or Letter of Agreement (LOA). Rather than redrafting the entire contract, parties typically create an MOU to address pertinent issues.