The solution to a race to the bottom, or to other kinds of prisoner's dilemma, is frequently to outlaw the option of racing to the bottom. Healthy bread can't compete because bread with sawdust is cheaper? Outlaw adding sawdust to the bread. Environmentally conscious factories can't compete because it is cheaper to pollute? Outlaw polluting to make a level playing field. Companies that pay their workers a living wage cannot compete with those who don't? Outlaw paying workers below a living wage, so that companies paying a living wage can compete.

In this case, I'd also want to see some form of UBI.

The best kind of safety nets are ones you set up BEFORE you throw people off the bridge.

If you want to protect the workers, set up a UBI now. Then destroy the jobs. Don't talk about hypothetical-might-maybe-work solutions to fix the problem you're about to create. Focus on making things not worse, not punting and hoping you can save the workers from homelessness later.