Democratic Socialism

I've recently begun reading quite a lot about different political and economic views, and have begun to realize that I identify most with Democratic Socialism.  I have one question about it, though.  Because democracy is applied to business, what keeps the larger majority of workers demanding more money than managers and up receive?  Would there be federal laws making minimum incomes for each level of the business hierarchy, or would workers just realize that that model would run the business into the ground?

Mom and Pop Shop are barely geting by.
Mom and Pop shop refuse Unionized workers.
Mom and Pop shop gets sued due to no unions.

Mom and Pop's decades of hard work now gone.
Workers move on to other jobs.
Mom and Pop are in huge Debt because of selfish American Workers.