I guess I'm in the minority here because I don't see a problem with seniority having its perks just as many people think GS or 1K status should have some perks. The airlines and union might think about making that seniority be based on time in the career rather than at the company in order to give FAs more flexibility on changing companies but if I was in a senior position at the company, I'd WANT the seniority based on time in the company so that I had an incentive for the best to stay with me rather than benefiting a competitor.
I noted immediately that the union was also behind charging the employees. That's good because the people this hurt most were fellow FAs. IMO, the best solution is the one they're taking: charge the suspects with fraud and then prove it. It's a much harder case but it means they don't have to hurt innocent senior FAs.