So according to you unions are rational, omnisciencet and benevolent agents, while entrepreneurs are dumb irrational idiots who will randomly fire people all the time for wearing a green shirt.
To your point about labor restrictions, unions gave us two day weekends and forty hour weeks. Modern labor practices are almost entirely defined by things unions fought for and standardized. The restrictions we have on work now didn't nebulously appear from the goodwill of employers.
What enabled more leisure and higher living standards for workers was harnessing efficient sources of energy, especially in the 19th century and creating machines to do a lot of hard work. Without efficient energy and machines, everything has to be done by humans, so reducing work hours means worse living standards. The fact that living standards were rising while cutting back on hours tells you there was something else doing the hard work and that was machines powered by efficient energy sources. That was the real enabler of leasure, cozy office work and high living standards.