The point of the report is that to attract new and keep current teachers is to make the job attractive to the best applicants. Your idea is to make it less attractive to the current ones, higher the currently unemployed ones (if they still want the job), and ultimately make it less attractive over time. Thankfully you are not the Education Minister anywhere.
If the boards have filled the system with a bunch of lazy teachers, then your gripe is with the board and union, not the teachers.
Given the oversupply of teachers, that situation has changed. There is not such a strong need to retain teachers, as there is an oversupply...
If the situation were different, if there were an under-supply, then I would agree with the suggestions they have for the sorts of things that need to be done for retention. I have employees too that I manage and I agree that a lot of things that people stick around for are not base salary issues. However, from an employer point of view, it doesn't matter whether you offer a benefit (like training, vacation, etc.) or base salary--it's ultimately viewed as total compensation. Total compensation needs to be reduced, whether it comes from salaries themselves, or from rolling back other benefits.