They can always do the layoffs later, in the meantime they got more labor at a cheaper unit cost. It's typically a good deal, managers getting the advantage fr

They can always do the layoffs later, in the meantime they got more labor at a cheaper unit cost. It's typically a good deal, managers getting the advantage from a union sense of solidarity. If it was a really bad deal, you'd assume they wouldn't take it, right? The only major risk is creating more pension liability by another year of service for some people, but if you're laying them off you have to pay that pension anyways, plus take a big short term hit paying out that much accumulated leave in one go.