To clarify...

The SKW policy is not up-or-out. Nobody ever has to upgrade, and I know a guy who just retired out of the right seat.

The SKW policy is that if you attempt upgrade (always voluntarily), and fail three events, you are out. My understanding is that there is some flexibility on the three events, and that a good attitude will usually buy you some leeway.

Personally I don't agree with up-or-out, or the SKW policy. There are a variety of folks in the airline business with a variety of backgrounds... businessmen, retired senior military officers, etc.

Some folks have so much going on in their lives that they may not have the time to deal with upgrade, don't need the money, and cannot afford to wast time commuting to reserve in another domicile. I know a former aircraft carrier commander and a former submarine commander, neither of whom ever intend to upgrade. A retired O-6 collects more money sitting at home than most regional CA's make by going to work...and nobody can really question THEIR "commandability"

Also some older folks may have legit concerns about their ability to learn new tricks...especially if it's on a different airplane. Anyone with any significant CFI time knows that old folks almost invariably have a harder time learning and multi-tasking.

It's not like majors or the better regionals EVER have a shortage of those willing to upgrade. If that were a problem, then the companies would be justified in implementing an up-or-out policy...but it's simply not necessary.

Even if up-or-out WERE necessary, there is no reason whatsoever to fire someone who fails the first time...ANYBODY can have a bad day. Or family/spouse problems, personality clash, or possibly just an examiner who is out to get you for whatever reason.

The concept of "every FO should have to upgrade" is a falacy, especially coming from military guys. In the military, we have up-or-out, and yes it is very necessary to develop our furure leaders. I am a product of that system and won't argue with it. But the airlines are not about public service or character development...everyone is there to make money (including pilots).

There is no reason that a few FO's can't remain FO's if it suits them...if the airline gets short of captains, they can solve the problem like any staffing issue: Junior Assignment.