@naheedd an older family member once told me this same process, but it was in discussion about unionization vs making individual contracts with an employer. In their case the defunding of unions by the bourgeoisie would be forcing people to go on strike, sabotaging negotiations, starving the unions out into submission (which by the way is why hunger strikes don't make sense to me).
Basically part of breaking unions is paying the first defectors more & then collapsing that increase once the unions collapse. This then applies to social wages gained through labor organizing etc, such as public healthcare systems too.