> For those who do not lose their jobs, the fact that they didn't lose their jobs is indicative of more major problems...they either don't understand the value of their labor, or they don't know how to negotiate with their employers
You left out a more likely option - that they effectively didn't WANT a higher wage and are being made worse off by the change - their job is now crappier and less desirable than it was before DESPITE paying more than it did before. Changing any single term of a contract by fiat usually makes both parties worse off - the fact that they could have negotiated for that outcome but chose not to suggests it's part of a suboptimal equilibrium.
What makes a job good isn't just the wage. If you force employers to pay more in MONEY per hour worked they will pay less in other ways to compensate. Less benefits. Less flexibility. Less training. Less "slack"/tolerance. Less willingness to take a chance on less qualified applicants. And so on.
You left out a more likely option - that they effectively didn't WANT a higher wage and are being made worse off by the change - their job is now crappier and less desirable than it was before DESPITE paying more than it did before. Changing any single term of a contract by fiat usually makes both parties worse off - the fact that they could have negotiated for that outcome but chose not to suggests it's part of a suboptimal equilibrium.
What makes a job good isn't just the wage. If you force employers to pay more in MONEY per hour worked they will pay less in other ways to compensate. Less benefits. Less flexibility. Less training. Less "slack"/tolerance. Less willingness to take a chance on less qualified applicants. And so on.