My point is; the employees in those other locations should be demanding that 25% boost as well and if they don't get it they should continue looking for positio

My point is; the employees in those other locations should be demanding that 25% boost as well and if they don't get it they should continue looking for positions. I'm assuming you're a capitalist, right? Do you think what you do is worth 25% more than what they do? Obviously you don't because you just admitted this was because of location (i.e. otherwise they're the same). So what is the market justification for paying these other employees 25% less? Are there more people willing to work in those locations? Of course not. The companies are manipulating those people into thinking that paying them less for creating the same value because their cost of living is lower.