Basically you're arguing that the race to the bottoms is good for everyone involved.
From a country that has hard fought-for USD16/hour minimum wage, paid 10 sick leave and 20 annual leave days per year, this doesn't appear true at all.
Nothing precludes proper employees with flexible arrangements. Forfeiting overtime pay and other labor protections afforded by law are definitely race-to-the-bottomy.
From a country that has hard fought-for USD16/hour minimum wage, paid 10 sick leave and 20 annual leave days per year, this doesn't appear true at all.