But of course. In an unregulated labor market, employers - i.e. owners of capital - are going to extract as much economic rent from their workers as they can get away with. The higher the concentration of capital, the more rent can be extracted this way.
There are only two ways to get away from that. If you want to keep the ability to concentrate capital without limits (i.e. capitalism), then you have to regulate the amount of rent that can be extracted via non-market mechanisms, such as legislation - i.e. ditch the free market on labor. This is the typical Western welfare state model. The problem is that it requires a strong centralized state to enforce such regulation, and that power will not stay confined to economic matters long term.
The other way is to allow free market on labor, but prevent unlimited accumulation of capital, so that the disparity between the average employer and their workers is not large enough to strong-arm the latter.