Wages shouldn't be used as a way of undercutting people. If the free market means that people are paying their pilots a pittance to be cheaper than the mob next door then there is a big problem with the way that business operates. If a company can't afford to pay the award as an absolute minimum then they shouldn't be operating.
I've been both an employee and, for the last 27 years, an employer in GA . I have always paid the award plus bonuses and all my staff have all the protections of being employed. I get what you are saying about getting rid of bad ones, so be careful who you employ; yes it can be a problem...unless they are casual. Give them the 25% loading they are entitled to and it is more flexible for both parties. The danger is when people think they are covered by things like third party lability and as a "Contractor" they aren't, and they can now toddle off to Fair Work and the boss can find themselves up for years of back pay including super, and quite rightly.
I believe CASA should insist that anyone employed to work in accordance with an ops Manual or equivalent should be employees. Not just the so-called key personnel but all the way to the newest most junior members of operational staff. They are all key personnel. We all know it only takes one bad apple to cause absolute havok. So treat them right.
CASA themselves have their Human Factors videos where one of the pilots is up all night driving taxis to make ends meet and the safety issues that raises.
I'm sorry to hijack your thread Glen