> This is utterly disgusting

This is effective. Therefore, normalization of this plays into the workers' hands, gives them information, and gives economic advantage to honest agents.

I mean, you could compare it to any non-capitalist society, where such treatment of workers is declared unacceptable. But what does this translate into in reality? Such strategies are still effective and provide an advantage to those actors who adhere to them. But since firing workers for their relative effectiveness contradicts the proclaimed ideology, such workers are simply accused of random crimes against the country and executed.