It'll sure as hell be negligent if the lower conditions eventually result in a lesser candidate getting in (because the higher skilled candidates went somewhere else for more money) and it resulted in a prang! Of course, that'll be far enough removed from the 'organisation' that the Reason model won't pick it up.
Before people start jumping on me, I know that low pay doesn't necessarily mean crap drivers are there at the moment. However, if this split in conditions continues and the emerging pilot shortage becomes more accute, it may well mean that the higher quality candidates get snapped up elsewhere on better terms and the LCCs are left with the dregs. Bring it on I say.