You are right in that most airlines pay per block time. At SWA it is basically mileage. One TFP is equal to the distance between DAL and HOU. However on long hauls the TFPs have been adjusted so that they pay slightly more than straight mileage. Additionaly block time is figured in the overfly pay. That is once you over fly the scheduled block for on a leg by 12 minutes you get an additional 0.1 TFP, and for every 5 minutes beyound that you get an additional 0.1. So if you overfly by 22 minutes you get an additional 0.3 TFP. Yes it does sound complicated but after a while you get used to it.
I think the big difference is that our system aligns SWA pilots' with the company's goals (roughly). Instead of a huge reserve system (30% ?) SWA lets their pilots work extra days (voluntarily) for extra money (and mans our reserves at 8%). Our reward for overflying is small (zero until 12 minutes), but the reward for an extra day can be substantial.
The title of your thread resembles our negotiating slogan "rewarding productivity" reminding the company and ourselves that we are extremely productive as a group. The company is expected to ask for more productivity, and we are expected to ask for more reward. In the end we'll probably all get a little of each.
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