For example, faculty are normally judged and rewarded based on grants, publications, student production, etc. If you have an "off year", your unit doesn't cut your salary and hand it to the young hot-shot who had a better production record for that year than you did. You're not doing piece work. Is that for "experience"? What if that "experience" doesn't translate into production quickly? A pure libertarian would say to reward the young person instead. That may happen over the long term through lay-offs, but if skills are the only thing of value (as opposed to skills+experience), the cycle for adjusting pay for output would be much shorter (e.g. more like piece-work).
If that's the new contract, then tech piece-work should be priced higher, to allow offsetting future down-times when you can't work at the pace or level of your late 20's.
To state that young people are "smarter" because they eschew families, cars or anything other than work is getting it precisely backwards or incredibly naive.