Calling the raises a socialist experiment when they are self imposed is offensive to me. It's his business and he can do whatever he pleases with it as long as he sorts out things with the other owners.
Other businesses being upset about the raises go fuck themselves as well. Wage completion is no different from price completion and is no way "socialist." if he puts wages too high he will fold just as he would if he put prices too low. Wage completion is something of a novelty in this day and age, but who knows maybe it will be good for the business in the long run. It's a worthy experiment for privately held companies.