In the early 1900's , a company often provided a company town, a place where the worker could live in the near working location ( usually like a mining location)
The workers usually were lured by the promise of high wage.
But here's the thing, in company town, a source of living usually can only obtained in a company store, and the cost is really high.
So instead of getting a high wage, the workers trapped in huge debt to the company, creating some sort of slavery that they have to work to pay off their debt to the company
Techincally, the company could easily bring those workers to the court ( even though is very cruel, they obtain the debt in a 'legal' way), so basically workers cant do a thing
What exactly is democracy? Abraham Lincoln said, "Of the people, by the people, and for the people." The term democracy is derived from the Greek terms "demos" (people) and "kratos" (power); hence, democracy may be thought of as "power of the people": a form of government that is based on the desire of the people.
The problem with giving plastic power in the hands of a representative body is that through it you can give basically a wide range of possible abilities/power which they can exert as they please. This isn't the best idea to do when the current representative body is prone to corruption for example.