If you're not talking about the government, you're then not talking about socialism. I don't know what else to tell you. This guy owns his business and has set his salary at the rate he chose to do so. Nobody forced him to do this. He still owns the business and all the associated assets with it. he can change their salaries back whenever he wants to. Nowhere in the Capitalism Rule Book does it state that a lower skilled employee needs to make less than a higher skilled employee. In fact I've worked for companies where an idiot son in law has a high paying job because of nepotism, even though he was hardly the most skilled person in the building. Now it tends to work that way because more often than not, companies value skill and supply and demand makes skilled employees less readily available, therefore they demand a premium on their employment. But it's perfectly capitalist to pay everyone the same wage. It usually will dip into profits if you pay them too much, or leave you're company with no employees if you pay them too little, but that's all part of capitalism too.
I really think you have no clue what socialism is, at least if you think this is socialism. It isn't. If he feels an employee is lazy and not doing their job right, he's free to fire them. In fact, he should fire them. The only thing really unique here is people who have skills/experience resent that they are making the same as people who don't (I didn't read that the skilled employees had their pay cut...in fact I think they got raises, just not at the same percentage as the unskilled employees). They are free to find a job that pays them better, or find a job where that disparity exists. In fact a few have. Again, that's capitalism.
