Well, tell that to Ryanair. They seem to be doing quite fine mistreating their employees [1]. I find it difficult to understand why people are working for them, but there must be reasons why.
You're suggesting only one option, and that option is to walk away. True, you can do that. In fact that is the ONLY thing you can do. From employer perspective, you're just a resource. Which is relatively easy to replace if there's enough money in their pockets.
Even the "walk away" solution is dictated by the employer, because the reality is that they effectively say "agree to our terms or p*ss off". So walking away is you picking the option #2.
[1] http://www.telegraph.co.uk/travel/travelnews/10063697/Ryanai...