They would get raises in an old way, from CEO. We are based in Poland, and as far as I know there is nothing illigal about it. Someone mentioned shoulder surfing - I believe people who would not join, would be decent enough to play by the rules and not do this.
Hi, I can give it to you since I work for Lunar Logic. How it looked: everyone felt a bit anxious and not 100% sure if it will be the good decision, but we decided to go for open salaries anyway (it was a collective decision after a series of long discussions of a whole company, not a decision at the top). When the salaries list was released, everyone took a look and there was no disaster. Most of the salaries felt just fine and we fixed ones that were bit too low soon after the list was released. We all treat it as a normal part of our job now and I think no one regrets that we went for it. Being transparent about it makes everything easier to be honest and we treat it as one of the coolest things we did last year.