There's also a lot of wage theft that occurs with unskilled work. Skim a few minutes off the time cards, or pay people under the table and pay them less, or try to skirt their way out of paying overtime.
I definitely agree there's nothing to prove most companies can be trusted to pay without a mandated minimum.
Yeah exactly, if people are desperate then it is much easier to exploit them. If you have no savings or skills, you are much less likely to cause a stink over not getting entitlements like overtime.