Inflation is a way to silently lower wages without pissing off workers.
See more: http://www.nytimes.com/2013/10/27/business/economy/in-fed-an...
Key quote: "Rising prices allows companies to increase profit margins quietly, by not raising wages"
See more: http://www.nytimes.com/2013/10/27/business/economy/in-fed-an...
Key quote: "Rising prices allows companies to increase profit margins quietly, by not raising wages"
The change in inflation would impart no change to the balance of power, so there's zero reason to believe that employers would become more generous in the alternate condition.
We already see employers trimming employee wages even today. It would simply be more common in a zero-interest environment.
[1] http://en.wikipedia.org/wiki/Keynesian_economics#Wages_and_s...