On the surface putting a cap of 3 or 4 levels makes sense, but it still has it's issues. First off, you don't even need to certify to put an ERR in. We have had trainees show up and put ERRs in after a few months at the facility.
Secondly, guys like myself that got hired in on prior experience bids had no choice. I didn't get to beat out classmates for the best facility on a list, I got sent to the next facility on the terminal list that needed a warm body. I know prior experience controllers vary in skill levels, but I got assigned to a five up/down and checked out faster than new hires that had 17 months of a head start. New hires are offered up to level 7's, (even 8's in some cases) right out of the academy. I'm routinely told from controllers who have less government employment/air traffic control experience I just need to "put in my time".
I propose that every employee wishing to transfer gets in one line and assigned a national transfer number. Requirements would be you must be certified at your current facility for one year. After that, if you wish to transfer you apply to transfer and you're issued your national number. When your number reaches the top 25 you will be given a list with all openings in the nation. If you select a 9 or below it will be automatic. Controllers at an 8 or 9 will be automatic for 10 and above. If you are at a 7 and below and you select a 10 or above you will have to go through some evaluation for that facility. If you fail the evaluation you will be offered the list again. If you choose a 10 or above again and fail to pass the evaluation for a second time you will go to the back of the list. If you have no radar experience and want to have the option to select facilities with radar, you must attend RTF or something like it prior to getting a transfer number. If you dont go through the radar training prior to requesting a transfer number you will only be offered tower only openings. This also levels the playing field for up/down BUEs taking longer to check out compared to tower only BUEs. If you get your list and don't wish to transfer to any of the facilities on it, you can submit one facility and be placed on a 180 day hold. If an opening becomes available during that 180 days you get first offer. After 180 days if no opening becomes available you must select from the list or go to the back of the line. If multiple people are "holding" for the same facility, offers would be issued in the order of who would be holding the longest. Releases will be no more than one year. A one time extension of six months can be requested from management but must have justification. The initial number assignment will be made from all the current BUEs with ERRs in and ranked by seniority.
I'm sure more details can be added but I think more people would be satisfied with a system like this. Additionally, it takes out a little of the politics. Feedback is welcomed.