American software engineers are paid commensurately more than equivalent roles in countries with strong worker rights. There is no free lunch.
Besides, it's probably counterproductive in the long run to think of strong worker rights as being opposed to the employer wanting higher productivity out of the worker.
Well, if we are talking the worldwide software development industry, FAANG-like salaries are a tiny exception. There are so many places without strong worker rights and without a high premium for workers.
The expectation of higher productivity measured by completely useless means, letting a highly qualified employee jump through hoops for the amusement and misconceptions of the C-level.