I've never seen anything like that and would be very wary. You have no idea what will happen during that year. It could turn out to be an awful place to work th

I've never seen anything like that and would be very wary. You have no idea what will happen during that year. It could turn out to be an awful place to work that people are dying to get away from. It certainly doesn't sound like a great shop. There are better ways to deal with slackers than not paying as much as hard workers ( like not paying them at all, not hiring them to start with, weeding them out as quickly as possible ).