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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. If issues arise while the contract is still active, the agency and union can create a Memorandum of Understanding (MOU) to address these matters. An MOU is a formal signed document that amends the collective bargaining agreement and reflects a mutual understanding between the parties on specific issues that arise during the contract term. MOUs may also be referred to as Memorandums of Agreement (MOAs), letters of understanding (LOUs), or letters of agreement (LOAs). This approach prevents the need to completely redraft the existing union contract.