Bucking Bronco
There are several gaping holes in your argument- for example-
This is because people who are below par are allowed a licence
Not really. We all have to meet the standard, which involves manipulating the aircraft controls to acceptable standards of accuracy, assessing weather, etc. As all initial issue tests are performed by the regulatory authority, the implication of your statement is that these authorities deliberately lower the bar- no evidence exists for this.
...is performing at minimum standards. Will the company training capt fail him?
No, because the training captains job is to ensure that he meets the minimum standard. Anything above that is icing on the cake.
If a particular company is found to be hiring below the grade pilots then more CAA sims will be conducted on their workforce. This of course would never happen since the CAA will answer to the £££'s of the company rather than protect the standards (hence Ts and Cs) of the pilot community.
Leaving aside for a minute the illogic of your last statement, The CAA takes a keen interest in the overall skill and experience levels within a company- ask anyone who has been through a routine CAA audit.
Back to the main topic.
My take on all this is that the job has fundamentally changed in the 20 years I have been doing it. It is no longer nearly as much fun, and the drive towards low-cost is widening the gap between short-haul and long-haul T&C's.
I no longer need the same skills I needed twenty years ago, and the CAA/JAA has recognised this by changing the content of the skills test- no longer requiring NDB approaches and allowing the use of autopilots etc. I am extremely glad that I fly a smallish, but very interesting and capable aircraft (146), which still has many quaint systems and rewards accurate hand flying. I am also glad that I get to fly into interesting and challenging places such as Innsbruck, Chambery, etc. To me, flying an automated aircraft between large, unobstructed runways would be like dying a thousand deaths- particularly if my every control input was monitored and recorded at Head Office, and every manouevre was required to be completely standard and inch-perfect.
Pilots no longer command the respect they once did, and automation is partly to blame for this as it allows the perception that anyone can do the job. We thus find ourselves regarded as an inconvenient commodity by the more cynical operators- who tend to be, as others have said, more interested in the bottom line that the nature of the business.
Pilots have historically made enormous sacrifices to get a start in their careers. This makes them very reluctant to ever consider leaving the industry, so many become bitter and disillusioned whilst feeling compelled to continue. It is perhaps time for many to "think outside the box" and assess the job for what it now is.
Whilst I don't believe that the airlines will go the way of the Merchant Marine (for many reasons, from insurance requirements to public perception), it remains clear that the job is changing. It is no wonder that many non-western airlines have trouble recruiting staff- the golden days of aviation are long gone now. Neither the rewards or recognition are there for highly skilled and motivated entrants to the work force, and the the pilot community will continue to be populated by those who, in the main, simply love to fly. This is simultaneously their greatest strength- and their greatest weakness. A weakness that some airlines exploit ruthlessly.
Enjoy you flying for as long as you can.