Just because the union made them do it, doesn’t mean it was a bluff or the right decision. And if those investments pan out, the stock gains are often worth substantially more to the employee than the token merit increase.
Sure, management have to turn realise they can no longer dictate what is solely in their interests, but in most companies they're probably up to the task.
Plenty of workers have forgone monies owed in order to keep their employees companies afloat. If both parties respect one another a lot can be achieved.
It's not like it's in the best interest of the workers to see the company go belly up. Or be less competitive. If the company can show that this is why they're defering merit pay there's no reason to believe that unions won't accept it and agree with them.
It gives employees leverage, and healthy competition in all aspects should just strengthen the company.
There's a real consideration of whether X% of employee compensation over N years is better than the same over M years.
So they kicked the can down the road and chose 1 until they just went bankrupt and the courts allowed contracts to be renegotiated and high cost union employees to be replaced with younger employees at a far lower compensation package.