Just because you like somebody who works for you doesn't mean it makes financial sense for the company to pay them more.
I'm playing devil's advocate here, because I also sympathize with the story. But money really does rule all and cold business decisions are often unpleasant.
I'm as liberal as the next guy, but stop pretending that companies are the most efficient, overhead-hating entities around and as such cannot deal with the poor common man, because we all know they're not.