No, he's including in the compensation the experience etc.

It's not strictly a free market so the market closing price will be lower than true equilibrium because a no-agreement for one negotiator (labour) results in starvation but a no-agreement for the other negotiator (employer) results in minor discomfort.

Perhaps allowing the former to negotiate freely by guaranteeing life will bring negotiation outcomes closer to true market closing price. That's got its own problems, of course, but unions aren't a bad idea to attempt to increase power of labour vs employer.