I'm a little surprised at that reading, but fair enough.

I admit I only skimmed it, but I thought the point was "the employer" is not a homogeneous entity. "The employer" therefore doesn't make the wage decision. Managers with some extreme perverse incentives do.

What's bullshit is the idea that as soon as an enterprise does something inefficient, boom, they'll be outcompeted. They might, eventually, if no market failures or regulatory capture exists. So in reality, large and even small/medium organization with a successful pattern can tolerate a lot of bullshit.