This could also be done by having no seniority system at all, and all positions, transitions to different aircraft, including CA, are bid by applying, both internally and externally. Longevity pay and seniority would only come up when talking about the same position in the same type. When you are hired as an FO for an ERJ, you are an FO for an ERJ and not "counting" on any sort of automatic upgrade, ever. When the company needs people to "upgrade", they open the applications for CAs, people apply, they take the highest qualified. With type and company experience, most may come from within, but a few external CA types with the appropriate type rating may apply as well. What this would do is completely destroy the seniority system and allow the business to work like most other businesses do. In most places, not all, but most, you don't just assume one day you'll be "appointed" as a manager or the next highest position just because you have a great personality and smile and put in some time. Companies and businesses don't care how great you think you are. This also separates out the non-motivated or poor performing FOs that are not motivated to, capable of, or interested in upgrading.

If this happened, IMO, pay would have to go up to retain and experience, the most important thing, would be transferable (in other words, you don't start out as a lowly FO at company B after being a CA at company A). You apply for the position that is open. This is the worst thing about the system. You can't get at the top of your game like in most businesses and get a salary that is at least somewhat representative of your experience and qualifications when you move positions. Right now, airlines have no incentive to pay pilots for their experience, because the system locks them in back at zero every time.