Give me a break, human nature is the same now as it was way back when. If someone can get cheaper labor and make more money they will do it any way they are allowed to. That's why labor laws were passed, to force business to treat workers like humans.
Your statement about unions being against improvement in the working conditions is so bogus I wont even comment on it.
In a free market:
If the worker is not receiving adequate compensation for his talent, skill, and labor (his product), he can sell it to (work for) someone else.
Likewise, if the product (labor) is not worth what the provider of the labor is providing, the employer should be able to pay market value for the product provided, or hire someone worth the salary demanded.
In the Goonion world:
The economy suffers greatly because we consumers are forced to pay for the inherent inefficiencies of unwarranted high salaries. Workers will continue to do inefficient things, employers cannot hire more efficient workers, and we all pay for it.