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Union contracts for local government agencies can last up to three years or longer. During negotiations for a new agreement after a contract expires, issues may arise that require discussion and agreement between the agency and the union. These mutual agreements are typically formalized through a Memorandum of Understanding (MOU), which acts as an amendment to the collective bargaining agreement. An MOU addresses significant issues that arise during the contract term and reflects the parties' mutual understanding on those matters. Other terms for such agreements include Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Instead of redrafting the existing contract, employers and unions will often create an MOU.