It's a little more nuanced than that. Prices are always set to "what the market will bear." By complaining about the additional labor costs (or patting themselves on the back for their benevolence), they may be able to shift market attitudes to increase the price, thus 'passing it on."

That's not how it works because the majority of us don't get to adjust the rate of our labor on the fly. Passing the cost to consumers literally happens all the time and it's not a secret.