Nothing works always. However, I think that basing pay on service time
is just plain wrong.

Why? They do it in other job areas. Workers with lots of experience who've
stuck with their career field are more able to deal with contingencies, have
gotten ongoing training to improve their skills, and have a wealth of lore that
enables them to help newer employees and continue operations smoothly since
they can refer to past events and understand the whole operating philosopy of
the firm or district. Sure beats having clueless rookies for the whole staff.