Only if there are plenty of workers for all time. The economy isn't in great shape now (We sometimes call this recession but recession has a weird definition that we might not meet even though it looks like one when you wave hands), so there are plenty of workers and in turns you can get by with paying less because someone who needs money will accept something with a lower standard of living - at least they are living.

However the economy has always moved in cycles. When things are going well again there will be more jobs than workers and if you want to get employees to take advantage of the money coming in you will be forced to pay more - even just to retain the workers you have you will be forced to pay more.

Thus this is not prisoner's delemma. The situation over time is far too complex for that simple analysis.