In 2005 the $A bought about 42 pence today it is 65 pence. So all else being equal a Qantas pilot would be getting 55% more in GBP, this undoubtedly has closed a lot of the gap to BA pilots.
Ok, before we get bogged down in historical currency exchange rates I don't believe it's really relevant. Qantas employees don't compete globally. peuce said it best :
I don't know what line you're in, but if a person in Singapore, doing the same job as you, gets paid less than you, will you automatically take a pay cut?
You'll never hear Qantas employees making an EBA claim for a payrise because Cathay employees earn more.
Executives, however, do compete globally. A few years ago when the $A dollar was 60c, CEOs were justifying their exorbitant salaries by saying they had to attract the best candidates from a global pool. The only trouble is when the exchange rate went up, the salaries didn't come down. So I think in their case, it's absolutely relevant to compare salaries with comparable foreign businesses.
As for seniority, I'm not convinced it is a great system for either employer or employee, danger is that you end up with disenchanted employees that want to leave but can't afford to.
Or if managed correctly, loyal employees who are willing to give 110% to see the company succeed because they have a long term vested interest in making this happen. Let me just point out that nobody joins Qantas pissed off and disengaged. It takes a special kind of management and at least a decade or two to wear them down to this state.