"Who will be the company that starts to treat their employees in a manner that proves they are worth staying at? This may mean higher pay raises, the CEO taking some of their profit (and the shareholders and VCs), and sharing it with the employees."
You're right!
Competition between management teams for investment ensures that, absent some other force constraining competition, it isn't sustainable for most management teams to break out of this race to the bottom. The exceptions - firms that have a quasi-monopolistic market position - prove the rule.
"Letting employees unionize, etc."
Employees don't need permission from their employer to unionize in the United States or any other high income country. It is entirely the decision of the workers; if a majority want to form a union, the employer is obligated to bargain with them.
Historically, this is how the race to the bottom has been halted.
You're right!
Competition between management teams for investment ensures that, absent some other force constraining competition, it isn't sustainable for most management teams to break out of this race to the bottom. The exceptions - firms that have a quasi-monopolistic market position - prove the rule.
"Letting employees unionize, etc."
Employees don't need permission from their employer to unionize in the United States or any other high income country. It is entirely the decision of the workers; if a majority want to form a union, the employer is obligated to bargain with them.
Historically, this is how the race to the bottom has been halted.