A friend of mine worked for a startup that's mentioned on HN quite a lot, (I won't say the name). The lead developers used git and IRC chat a lot. After being hired my friend began to test a new product they were working on and submitted some changes to github, they accepted the pull request and my friend submitted a few more finding all sorts of bugs. At this point the lead developers started to argue about how the changes were unnecessary and that my friend needed to learn more about how their product worked, what was rude is that they were publicly arguing while leaving him out of the conversation. No words directed at him, just conversation about him. A few weeks later they realized their project really did have a lot of bugs and pushed through a large change with many of my friends bug-fixes in it without giving him credit or even so much as a thank you.
The lead devs would pal around and make inside jokes and ask my friend to do all sorts of work while leaving him "out of the loop" as if he were some "lackey" for them to boss around and not really part of the team.
Not too long after he started working there the team told him he needed to attend a "conference on sensitivity in OSS" halfway across the country. My friend couldn't make it and then he was basically interrogated by the lead devs as to how he feels is the proper way to treat people. He said he was treated as if he was in trouble and felt like he was being accused of a crime. About a month later he left the company after being continually snubbed by his superiors and not receiving any appreciation for his work.
Personally I get this feeling with a lot of "safe space" organizations I've contributed too. The leaders are arrogant and passive aggressively rude, treat you like crap and belittle your work, then act high-and-mighty because they've never said a curse word.
Since we are social animals then preventing talking between us make things harder for us at some points, ie the job gets harder, so that could be an argument for higher wage.
Another question is, could your father had had the same increase in productivity, or even more, if he had used other strategies, like productivity bonuses for the team?
Being nice and respectful is not something that you try to do despite the relentless market competition. It's something that you must do precisely because of that competition. The reason being, unless you can have a good working culture, you'll end up with a group of desperate people that have no where else to go. Good luck trying to come up with any creative work or idea with a company full of desperate people.
You can make any change in a workplace and see productivity go up.
This is related to the Hawthorne Effect. It even jas a wikipedia page.