This is why Uber spend so much money fighting cases about the classification of their drivers work status in virtually every country they operate in. Most western countries have laws designed to prevent companies exploiting employees by reclassifying them as contractors, especially for low paying or low skilled jobs. The recent Uber employment case in the U.K. Is a great example, and is precisely the kind of problem unions were historically good at dealing with.

https://www.google.com/amp/s/amp.theguardian.com/technology/...

"But IT has unique demands requiring it!". That the same trick is used from literal sweatshops and up must therefor also be a coincidence.

Serious question, what if I made a small side business just for fun where I paid school children peanuts to run errands for me? Soon, those kids grow up and are still working for me and are now angry with me that I am paying them peanuts when their livelihoods and families depend on me. Yet I don't have enough to give a "living wage" with benefits - I just wanted a fun little side business for the school kids - not support everyone's entire family...

Soon he drops out of high school and demands to be paid a living wage with health benefits since I am now his source of income. The other egg gatherers unionize with him and threaten to strike if I don't. I fire them all and scrap the business instead because I can't afford to pay them all a living wage with benefits without making my eggs way more expensive than the competition.