"The actual labor costs for the workers are not the issue" How do you know? The article explicitly calls out union labor costs. By "profiteering" are you complaining that someone made a profit because there is nothing in the article to indicate excessive profit.
Union labor is really expensive. It cost my neighbor who is part owner of the SF ferry building wine shop, over $8K to install a TV set because it had to be done with union labor. And get this, he was not allowed to install it himself because of union rules.
I have another neighbor that works as a location scout for movies and commercials. He says all filming in SF has to be done by union workers and its much more expensive than filming outside SF.