Workers and firms often enter into contracts that fix prices or wages, sometimes for years at a time. If the price level turns out to be higher or lower than was expected when the contract was signed, one party to the contract will lose out. Briefly explain why, despite knowing that, workers and firms still sign long-term contracts.

Established "order of business": Most jobs require a period for employee training and setting up SOP. In firms with long term contract employee turnover is not high and these people become well trained in the field and minimal time is wasted training new people too frequently
Higher investment return; most businesses need a start-up fee for buying the tools and offices that are needed. This fee for long time contracts will be a one-time fee for a long lived company. Money will be made in the long run to cover the initial investment
Better support for customer service: the longer a business is kept open the easier it is for the employees to understand that there are specifics about customers that can make their experience worth while
Stronger Relationships can be built with other business for collaborative advantages as the long term business will show that they are committed to the firm and the brand that they represent.
Better Protection from people around such as the auxiliary staff that have become familiar with the persons in the company. They will be more protective of the physical building as well as the people that they have become very familiar with.

mahak08 mahak08 · Answer 2 · 2022-03-01T17:31:17+01:00

Contracts are most common in union positions, which are jobs where employees are represented by organizations that function as a middleman between the employees and their employers.

What are the benefits of a long-term contract?

There are five advantages to signing a long-term contract:

Established "order of business": Most jobs necessitate a time of employee training and the establishment of SOP. Employee turnover is low in organizations with long-term contracts, and these employees become well-trained in the industry, with little time lost on training new employees.

Higher investment return; most firms require a start-up price to purchase the necessary instruments and offices. For a long-lived corporation, this price for long-term contracts will be a one-time fee. Money will be made in the long run to offset the initial investment as they grow more familiar with the people.

Better customer service support: the longer a business is open, the easier it is for staff to grasp that there are specifics about clients that might make their experience worthwhile.

Stronger relationships can be developed with other businesses for collaborative benefits, as a long-term business will demonstrate that they are devoted to the firm and the brand that they represent.

Better protection from others around you, such as auxiliary employees who have been acquainted with the people in the company. They will be more protective of the physical structure as well as the individuals with whom they have become acquainted.

Thus, This is done to shield employees from future, unavoidable inflation, which can occur abruptly as it often does.

For more information about long-term contracts refer to the link:

https://brainly.com/question/25109878