"All pilots will be paid on the basis of scheduled (as published on the pilots' final bid award) or actual block flight time for each flight segment, whichever is greater."

There was a big settlement agreement on this as well, which goes into much more detail. If what skillett suggests is happening, they are in violation of the contract and settlement agreement. My understanding of the settlement agreement is that if your scheduled flying (minus any cancellations) plus any overblock is greater than line guarantee, you get paid the higher amount.

Here is the example given in the settlement agreement:

"A pilot is awarded an 80 hour line. His total actual flight time for the month (as calculated on flight segment basis) is 78 hours (comprised of 75 hours scheduled and 3 hours of over block). The pilot had 5 hours of cancellations. The pilot would be paid 80 hours for the month."

So it's not leg-by-leg cancellation pay, but it is scheduled block or better, leg by leg.