Pay for Training
Materplan: Your question is certainly valid, and I can only offer my opinion. I'm not completely up to speed on what pay for training is, but the way I understand pay for training you actually pay for your initial training in order to secure a job. You pay for the training so the company doesn't have to.
Another hook might be a training contract, where you repay the company the cost (or a portion of the cost) of the training if you leave within certain time frame (ala ATA). Do you consider a training contract pay for training? I don't think so, but some might.
The 737 type rating, on the other hand, is simply a minimum requirement for employment at SW just like an FAA medical and ATP rating. You have to have them in order to be considered for employment there as a pilot.
SW doesn't train you less because you have the type, they still have to put you through their FAA certified training program in order for you to fly their jets their way.
Having an ATP is the FAA's way to make sure you have demonstrated the skills to fly as PIC, the 737 type is SW's way of making sure (in addition to the ATP) that you have demonstrated the skills necessary to fly the 737 as a future PIC for them.
You don't pay any of your training costs while at SW, they do. They don't save any money because you already have a type (in terms of initial training).
As Canyonblue mentioned, you could have acquired the 737 type while flying for another carrier, the military, or perhaps courtesy of some other rich uncle (other than Sam).
Its a requirement for employment, not a shortcut for the company to get you to the line, therefor I don't see it in any way as a pay for training situation.
Most of the majors used to require the FE written exam when they still operated 727s, and I don't think anybody considered that a pay for training situation either. FedEx still requires the FE written as a basic requirement for employment and you don't hear anybody complaining about that. Sure, the cost is much less (in both time and $) but the analogy is still valid.
Sure, a lot of folks go out and buy the type rating specifically to become eligible for employment with SW (I sure did), just as EVERYBODY goes out and pays for their ATP, Class I, and RTOP. You've got to invest something to make it to the show, and if the show means SW to you, then the type is just another step along the way.
I personally got the type specifically for the chance to fly for SW and although I may never do so, I still feel that I gained alot from the experience and it helped me make the transition from flying a small french jet for the CG to flying a pax jet in the 121 environment. There were other benefits for me other than just meeting the mins for SW, although that was MY primary reason.
Just one man's opinions.
FJ