This makes a good read:

How Comalco broke the unions

I visited the company a few weeks ago. The new structure (i.e. non-unionised) seems to be working well. Everyone seemed incredibly happy.

I suppose part of the above issue is what value each employee is bringing to the company - in terms of business sense rather than pure ethics. I would suggest that the CO isn't worth as much as the combined knowledge of the team. Diversity of experience and capability of workers is important. If by choosing to take a pay cut the CO could avoid lay-offs, the company may actually perform much better in the long-term