Profits have, do, and always will come from a balance of product cost (quality of the product and labor cost) vs selling price. Consumers determine what they will pay for various products and quailty grades of similar products. It is usually possible to reduce the quality and bump the profit for the short term. In the long term, that strategy may well sink the company. Yes, it is always possible to dilute the profits by distributing more to labor. But, it is not always wise.

Consider the American auto industry. Seems to me that they failed to meet a foreign challenge in quality for price. Further, they distributed lots of their profit in high labor costs. High cost labor is now losing its jobs.

Would it have not been better for unions and management ot recognize that the challenge was from teams of foreign labor and management? Would it have not been better to balance the cost and quality and to pay labor a sustainable compensation?