Many JW related business outright rely on "affinity fraud" or take advantage of the good will of local KH members, so his company profitability may have relied on not paying the going rate and getting cheap labor.
On a side note, I knew of an elder who ran a HVAC and electric company. He would employ young men from nearby congregations and in one case talked a teenager into quitting school to go full-time in his business. He paid them less so he could underbid his competition because they were trainees. Once they were fully certified he would then encourage them to find employment elsewhere. One day he just up and shut down the business due to a nervous breakdown. He was one of the few elders that I believe meant well, so maybe his conscience got to bothering him. He asked to be deleted as an elder and moved away not long thereafter.