"The bottom line is that there are very few nice, generous employers anymore"
The margins for doing business in many retail spaces have been going down for quite some time.
I'm certainly no expert in employee relations. I worked in IT for telemarketing company for several years. Draconian rules much like this were put in place there because employees regularly abused the system due to alcohol/drug addictions, poor decisions, and the stress of the job. Basically, lots of people couldn't bear to come in to work, so they'd call in sick. It made it impossible to tell the real issues from the imagined. It was very sad.
The hard truth was that it was just as cheap (and sometimes cheaper) to train someone new for unskilled labor as it was to deal with absences by existing personnel.
Of course those people who did a really outstanding job didn't have to deal with that issue. It's always been up to the employee to make sure they are valuable enough that the company doesn't want to work without them.