Quite an interesting idea. I guess the thought behind it is the occasional traveller will be OK in Y, but someone who travels more frequently deserves a flat bed??
If you cut 2xJ tickets per person that is probably a considerable chunk of budget saved, along with going someway to suppress a phenomena that absolutely exists in my company to come up with a very loose reason for a trip to either a) have a nice week away with a business class flight/nice hotel or even worse b) position in business class for your holiday!