Playing the devil's advocate here, why is it OK to pay a developer in India $3000/year when they could command $300,000/year in Silicon Valley?
Also, unless they joined within the last year, the current employees signed contracts obliging them to come to work 5 days a week. If they wish to permanently move to working from home in their pajamas for 5 days a week instead, the company is basically saying "Sure, but that will be a 15% paycut because we feel that makes you less valuable to us". You're welcome to disagree with the company's view, but it's not particularly "unfair" to me.
IMO, it's perfectly fair and fine if they want to take that approach
Likewise, if I'm looking at an offer for $350k total compensation from Company X, and $300k from Company Y because they think my time is less valuable when it's remote, I'll probably go with the higher pay
Indian engineers who could do a $300k job in the SF Bay Area aren't going to just hang out in India making $3k a year for long.. sooner or later they'll get a lot more of that value they're generating. "This lazy fucking American who fixes the bugs my tests find is making 100x as much money as me??"
Also, unless they joined within the last year, the current employees signed contracts obliging them to come to work 5 days a week. If they wish to permanently move to working from home in their pajamas for 5 days a week instead, the company is basically saying "Sure, but that will be a 15% paycut because we feel that makes you less valuable to us". You're welcome to disagree with the company's view, but it's not particularly "unfair" to me.