You can have pay transparency without enforcing strict pay levels per role.

The natural outcome is just that thise who make less than their coworkers will feel undervalued and look for other jobs, which is probably not a big problem.

Studies of workplace motivation and performance often find that one of the worst things you can do is get everyone obsessing about salary all of the time instead of focusing on the work. (Notably, this isn't just bad for the company, it's bad for the workers' quality of life.) I think it's fair to say that sometimes companies are trying to screw the workers, but I also think some of the norms around discretion on this topic were an informal evolved mechanism to dampen the natural status competition people fall into and get them to work more as a unit focused on a goal. While I appreciate the aim behind transparency laws, I'd prefer it if certain things like choosing to talk about salary were protected. Publishing all of the salaries by default seems like a blunt mechanism and strikes me as very libertarian or Marxist thinking where you're either assuming a) a free and transparent market always produces the best result, or b) people fall into broad "classes" in which all individuals share the same interests and will work together. I generally think both of those modes of thought are simplistic and, despite some underlying truth, fail to account for many important complications and unintended side effects.

Meanwhile, Everybody else is doing the bare minimum to close the ticket so they can look good when it comes to pay review time.