Whether or not they get a better 'deal' depends on your personal priorities - the 'contract' option is open to us all, but carries attendant disadvantages.
What makes you think contract pilots are more expensive than permanent staff? Just comparing take-home salary is a far too superficial analysis.
Anyway, are we sure that staff travel across the Star Allianceis available to baby employees? I really thought that was just for mainline/regional crews. Good news if so.