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Union contracts for local government agencies can be effective for three years or more. During negotiations for a new agreement, issues may arise requiring discussions 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 collective bargaining agreement. The MOU addresses specific issues that emerge during the contract's 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 use an MOU for such amendments.