How to handle the "job hunt" professionally

[The_Grudge]

I need some advice on how to handle a minor situation that has cropped up. I love my current job. The people I work with are great and my boss is a great guy. I was initially hired on a six month contract and that contract continues to this day, almost 5 years later. The pay is good (18% lieu of benefits/vacation) but I get no benefits, no sick time, and no paid vacation (okay, I do, but who saves their vacation pay?LOL)

Anyway, they've told me several times that they'd like me to be a permanent employee but they can't really do much as there is a union where I work. All positions must be posted and internal applicants take precedence over outsiders, which technically, I am. About a year ago they told me they'd start putting the wheels in motion to post the job but nothing ever happens on that front and I sometimes feel like work is pushed to me because I'm just "the contract guy".

So in the interest of job security and advancing my career I've started applying for other jobs. I would like to stay in my current position as it provides a wealth of future opportunities. None of that means much though with a contract job.

So yah, I started throwing out the odd resume. Well today I got a call for an interview.

Now, most of the people I work with I consider my friends. Including my boss. So what should I do now? Try to set the interview up on my lunch break (this place is 5 mins walking distance from my current employer) or should I make it known that I have an interview in hopes that enough is enough and I'm moving on unless they can offer me something more secure?