Jim,
This is simple aviation maths to the management here... Those they laid off.. old terms with seniority... more expensive.
Needless to say, they can do anything they want with the new cadets. Eg. NO more priviledge(FOC) ticket or in future check out as Captain no more first class upgrade.
With present union leadership style you won't even expect a fart from them regarding this deteriorating terms and conditions. Wait till you hear about the proposed wages for Capts and FOs on 744F... Looks to me that they( the management) figured there are lots of desperate pilots with 744 ratings out there..