The Significance of Seniority in Layoffs: A Comparative Analysis

The role of seniority in decisions about layoffs when firms have to downsize is discussed on the basis of comparative studies from five countries: Brazil, France, Germany, Norway, and the United States. The relevance of seniority is viewed in relation to pure norms of allocation, such as equality, contribution, needs, and productivity. Seniority is shown to have strong adherence in Norway and the United States, while it has a rather weak position in Brazil and France. Germany ranked as an intermediate between these two extremes. Reasons for the variation in the strength of the seniority principle are sought in general legal regulations, in wage agreements, and in the structure of the bargaining situation between employees and management. The future of the seniority principle is briefly discussed and it is assumed that it may lose importance due to organizational changes in the workplace.