This is a fair contrary point to raise. You can see its effect most clearly in the U.S. in the fear people have around health insurance, because it's so closely tied to their employer. (Which is also its own ball of problems, of course.)
We'd just be back to the wild west of employment law pre-1880s, except without even the meager fallback of employment contracts, everyone would be at the mercy of the owners.
a) continue working this horrible job and survive
b) quit working this horrible job and (lose healthcare/don't pay bill xyz/starve/insert outcome here)
My argument is that if survival isn't tied to gainful employment, the nature of work and the market will shift.