Absolutely, and we hear members telling us about it. Members who over time have organized and have solid working contracts say that their employers will tell them they're having trouble competing with the companies that are cheating. As a result, they start telling the workers who have decent working conditions that they need to consider cutting down on them, because they can't compete with the companies that aren't following the rules.
It penalizes workers who have organized their workplaces and negotiated solid contracts and good working conditions, and it also penalizes companies that actually respect their workers and follow the rules.