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I don't find that more pay equals more productivity translates all the time. I find that in many cases more pay equals more complacency. I've seen it happen many times.
I think something that is missing from many people's calculations here is that while these foreign workers are getting what you perceive to be a very low wage, this wage is a) the market rate and b) not a small amount of money back in their home countries.
To the first point: People would not travel thousands of miles to take a "low paying job" if there was no upside. The fact that so many are willing to travel so far suggests that there is a demand for these jobs and that the wages are what people are willing to accept in exchange for their labour. Remember that in addition to this wage they are also getting room and board.
To the second point: Wages are relative. In Sri Lanka, the Philippines, Bangladesh, etc. that $5/day translates into a lot of money. One person's wages, sent back home, can support many. I know a few Filipino domestic workers that support their entire family (Mother, Father, kids and husband) on 400 Singapore dollars a month. It's isn't luxurious living but it is a decent living.
While the conditions of the work camps could be better and some of the employers are a unscrupulous, I think this isn't as cut and dry as some would have it.
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"My hands are on fire. Hands are on fire. Ain't got no more time for all you charlatans and liars."
- Old Man Luedecke
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