This is not wrong, but I feel you are hiding the adversity inherent to employee-employer relations. Why is there such a labor glut anways? If it's an immaterial underconsumptionist / keyensian demand-shortfall type problem, how can we boost aggregate demand and broad population purchasing power. If it's some sort of supply glut / too much productivity issue, how can we all work less?

Speaking about these issues as if they are "engineering tradeoffs" ignores that the status quo is not static and universal.