The counter argument isn't that directors should have more power at the expense of employees, it's that the harder it is to fire someone, the less likely a company is to take on employees they don't absolutely know they will need for a very long period. This slows down the entire economy severely which hurts employees much more than directors (harder to get a job in the first place, less options for switching jobs if you don't like your current). This feeds into the political system: When most people are in employments for life, and has never had to justify their own contributions and have no pressure to keep their skills up to date, they will not (broadly speaking) support politicians who will diminish their rights, leading to further entrenchment.

The current state of the Spanish economy, particularly the crippling high youth employment is the primary case study for this situation.