Well, we went through pains going from 1st to 2nd and 2nd to 3rd, too. It wasn't smooth. This won't be, either.
The question is, is there something more or less stable at the end of the transition? Are there enough 4th level jobs for the people that can make the switch, and are there enough 1st, 2nd, and 3rd level jobs for the people who can't move up to 4th? Or is there no smooth road after all the bumps of the transition?