I used to work for a guy like that. I figured it was a tactic used on his part to keep me feeling like I wasn't worth any more than the scraps he was paying me. Then I wouldn't never get the crazy idea I was worth anything. Then when I put in my notice he finally offered to almost double my wage ($13 to $21). I was a little tempted and a little insulted. I left anyway.
I believe that if the reason behind this is to pay less, the opposite is true. You can probably keep a guy at lower paying shop by giving him a better reward than money. Make him enjoy getting up, coming to work, and feel satisfied at the end of the day.