The only way LIFO would ever work is if everyone earns the same increment. That's what we should be campaigning for, a better basic salary with fewer increments. Otherwise the "bean counters" will always find some way to eliminate LIFO. The harsh reality will always be a year 1 Captain/ FO can do the job of flying passengers from A to B just as effectively as a year 17 Captain/ FO yet the more experienced crew earn far more. In their mind it's like having two machines that produce exactly the same thing, just one costs a lot more than the other.
Can't express how sorry I feel for those Flybe guys at the top of the list facing redundancy, also really hope there is some hope at winning this and putting a bit if job security back out there. If it all fails best of luck finding new jobs, it's not much but at least you have some hours.