Absolutely true.
Simplifying a little, there are companies here that everybody wants to leave and companies that everybody wants to join. It's difficult to leave the first category since the employee's skills have atrophied (see https://blog.stackoverflow.com/2015/09/how-to-be-awesome/).
Lets take an example -- the worker makes 100/hr, the tertiary (recruiter who actually found the talent) gets 25/hr, the secondary (who vetted from multiple tertiaries) gets 25/hr, the primary (who plays golf with the CIO) gets 25/hr.
So perhaps the worker is well off at 100/hr, but this is a huge loss to the company -- three extra parties have taken a cut just because the HR manager didnt want to vet their own people. If the skill-set is worth more than 100/hr, then the company cant recruit the right talent, and complains of "shortages" whereas in reality, the "shortage" is because too many third parties have their hand in the cookie-jar leaving too little to pay the actual market wage.
The recruiters who are working for these companies are, to some extent, as the author describes. The real reason the industry is so slimy on that end is because enterprise companies are too old fashioned to view technology workers as people who deserve to be paid salaries on par or exceeding middle managers. Therefore, the salaries simply aren't high enough to attract talent beyond H1B indentures and fakers who are horribly unproductive. This creates an IT department that isn't very good or effective, and thus isn't thought of as deserving high pay. Never mind that the C-level management at large, established companies is, for the most part, hopelessly disconnected from what it takes to have an effective technology capability at a company. If you don't agree with me on this, then ask yourself why SAP and Oracle continue to make so much money selling huge software implementations that are known to never work and always go over budget.