That's easy to say when you aren't running the cooperation.
You make hammers.
Every hammer costs 5 dollars to make while the wage is 10$ per hour. 3 of those 5 dollars are wage costs. You sell the hammer for 10$ making 5
Government doubles min wage to 20$ per hour. Now your cost of hammers is 8$ and you are only making 2$ per hammer. You have lost over half of your profit.
Do you shrug your shoulders and say, welp thats tough on me, I will just deal.
Or do you sell your hammer for 13$ and keep making that 5$ per?
I would contract with the Government and sell the hammers for 100$ each, but I'm a dick like that.
See you are taking a snapshot. What if the cost to produce a hammer decreased hypothetically by a dollar every year because I could make them faster or cheaper.
If it cost $5 lat year and it cost $4 this year....what are you Johnny Hammer Corp going to do with that extra $1 in profit?
And there's my rub. The hammersmith doesn't deserve the whole portion but the 10% increase but they do deserve some.