When creating a new position within the department for internal transfer, does seniority play a role, if so how?

Generally, seniority does not play a role in determining who is transferred to a different position that is the same classification, however there are instances where it may depend on the specifics of the situation.  When geographic displacement (moving to another City) is a part of the transfer seniority is considered, along with other relevant criteria. It is important to be able to articulate your reasons for your decision. If you have questions about your specific situation, you should check with Employee Relations.