Unless they are given meaningful equity, it's not their ship, and regardless of whether it is or isn't, unlike the shareholders and creditors, they won't be sinking with it.
If you want worker interests to be even a little aligned with owner interests, the correct corporate structure is not an S corp, or a C corp, it is some flavor of worker co-op.
If you want worker interests to be even a little aligned with owner interests, the correct corporate structure is not an S corp, or a C corp, it is some flavor of worker co-op.
And even then, it can't grow too big.