Union contracts often provide greater job security and other benefits to longer-tenured employees. This system, where length of service is a significant factor in determining employment rights, rewards loyalty and provides a clear, predictable structure for advancement and protection against layoffs. For example, during workforce reductions, those with less time served might be laid off before those with more, providing a degree of stability to experienced employees.
This structure offers several advantages. It incentivizes employee retention, contributing to a more experienced and stable workforce. This, in turn, can lead to increased productivity and institutional knowledge within the organization. Historically, this protection emerged as a response to arbitrary employer decisions and favoritism, offering a fairer system for all. It provides a framework for career progression, promoting a sense of fairness and predictability within the workplace.