Is flying pay a retention tool, or a retention and recruitment tool? If there is an element of recruitment then surely, using Uncle G's arguement, we can reduce flying pay as soon as people have completed flying training (which I believe these days is actually when we start paying it), on the basis that you have already been recruited, therefore that element of flying pay is "no longer achieving its aim"...
Secondly, what is the PVR time for aircrew these days, is it down to 6 months like everyone else? If so, given resettlement, terminal leave, etc, you can be in a new job, being paid, inside 3-4 months. While the loss of flying pay for 3-4 months is not inconsiderable, if you really want to go, and have something planned for outside, to me the loss of flying pay will simply confirm what a mean spirited organization you actually work for.
Finally, I very much doubt that any of the "names out of CAS hat" will lose any flying pay. They have not PVR'ed, rather they are being made redundant, against their will for some of them.....