Sort of with you Dusty, but...
If, let's say, instructors were employed on a long term contract (I'm on 3 months notice, why shouldn't they be!), with a guaranteed minimum income, and minimum working hours (weather's crap, so what, you're still part of the business come and tidy / teach groundschool / talk to the customers / polish the aeroplanes) - and even a bonus based upon profitability of the school - many other businesses run that way quite happily.
All down to attitude, but different management practices do tend to change staff attitudes. Paying by the hour, with no security of employment or income, and not expecting people to come in if they haven't lessons booked, doesn't strike me as the right approach.
G