Well, it is true that there are often reasosns why companies keep people around even if they are not doing quality work or if their performance has declined.
In my country, if you pass your probationary period of three months, your contract turns into a indefinite work contract and you start to accumulate severance that the company has to pay if you are fired. So, I am sure paying out that money is a consideration for people that have been there a while, since it gets expensive. In my department, they have let several people go during probation who didn't seem to be catching on because the reality is that it is much easier administratively and financially.
And, of course, you have those people who are the boss' or owner's favorite who are perceived as doing no wrong. We had one of those in our department, but she resigned to take another job recently.
Unfortunately, I think it is just part of the working world. There's not really anything you can do, so try not to waste energy worrying about it. I'd just try to focus on doing your job.
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