Earlier quoted context omitted.
Oh bullshit. If Organization A doesn't pay its workers, Organization B will notice that Organization A has gotten away with it. Then, Organization B will stop paying their workers, since after all, each employer who stops paying increases the degree of monopsony buying labor for zero.
There is an assumption underlying my premise: that organisations are in competition with one another. I think that's a fair assumption to make. I would expect that competing organisations would do anything legal to give them a leg up over the competition, including the hiring of workers they consider productive away from the competition. It's too risky otherwise; all it takes is for some other organisation to offer w…
Market dynamics work as you described when buyers are required to actually pay something.