Yes, this usually happens when the employees have been milking the companies. That's actually what is happening now. This is why people are willing to go to cheap labor. If your current work crew isn't performing well, you might as well hire out for cheaper. If your workers are good at what they do and work hard, then the employer won't hire to the cheap pool, because the cheap pool isn't equivalent.
Where I work, we sometimes bid a job for 4x what other firms bid it out for. But many companies still hire us. Why? Because they know that it will cost more in the long run if they go with people who aren't as competent to do the work.
Middle class wages are stagnant because (a) middle class workers are slacking, and (b) the government is eating up any possible extra money, and (c) inflating the currency enough to make savings worthless.
If the well-paid workers aren't any better than the cheaper pool, why *should* they be earning more money? Also remember that the split between a "worker" and an "owner" is purely voluntary - any of those workers could themselves be owners, but have chosen not to be. Money is not a right. You must work to earn your keep.