Suppose some industry wants government protection-- quotas on low-cost imports, high tariffs, ... -- or government subsidies -- loans, tax breaks, whatever. There are always a few industries in any industrialised nation asking for such things; quite often the unions and the companies agree on this, if nothing else.
Suppose further that government grants these, but with a catch.
As long as the protection is in place it becomes illegal for anyone in the industry to give any worker a raise, pay their stockholders a dividend, or give executives any bonuses, so everyone involved wants an end to the protection.
The notion is that as long as they have the protection or subsidies, they only spend money on upgrading themselves so they can get free of those restrictions. New equipment, training for staff, ...