That logic only works in an industry where there are more barriers to entry. As it has been proven many times over in this industry, there are many willing to work for substandard wages in order to enjoy the perks and respect the job offers. Management definitely uses the democratization of labor as a tool to suppress wages at every opportunity, especially at the regional level. The only thing preventing that from happening at the major level are the relatively strong unions.

Do unions have their downside? Sure, sometimes they are their own worst enemy. Free market wages are not going to come to aviation without resulting in some crushing reductions in overall compensation.