Of course, if you are paying more money from getting the same amount of value from an employer, that is bad for business.
But this is not necessarily what can happen, giving more benefits, more stable schedule, better wages, more WLB means being more competitive in the labour market, it means retaining worker more easily. If the company is not wise enough to do it by itself, still it doesn't means that it cannot be a net positive for the company itself.
The whole idea of treating humans as leaking, opexed, robots will need to be fixed, but it can be done and it can bring benefits.