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Union contracts for local government agencies can last three years or more, during which time issues may arise that necessitate negotiations between the agency and the union. To address these issues while the contract is still active, the parties may create a Memorandum of Understanding (MOU), which is a formal agreement that amends the collective bargaining contract. The MOU typically focuses on specific issues that develop during the contract term and reflects the mutual understanding between both parties. MOUs can also be referred to as Memorandums of Agreement (MOAs), Letters of Understanding (LOUs), or Letters of Agreement (LOAs). Instead of redrafting the entire union contract, employers and unions often opt to draft an MOU.