[BigV]

A reliable generalization is that a business will operate in its own best interest. And given that remaining a going concern and steady profits (the overage from revenue minus expenses) are the most compelling best interests of the business, things that interfere with the progress toward those goals are viewed with a skeptical eye. Things that increase expenses by definition decrease profits. It *may* be the case that some things a business expends money for increase profits MORE than the cost of the expense--employees, for example. But when that equation doesn't resolve in the business' favor, the expense will go--has to go--for the business to survive.

It is true in many case of the example you give that employers who use non union labor enjoy lower costs. It is also true that lower costs and better employee compensation is a win-win, as you put it. But lower costs to not imply better employee compensation. In my long experience, the greatest share of the increase in profitability from the reduction of expenses accrued to the employer, not to me. Just because a business has lower expenses, there's no guarantee that I'll get some of that win in my paycheck.

In fact, why would an employer ever pay more than the barest minimum for labor?