You don't magically get what you pay for. Give lazy people more money, and they get lazier. You get what you can out of people. If they think they are worth more, and another employer agrees with them, they are free to leave. I am in favor of paying what people are worth, but a good laborer is still Just a laborer and not magically worth $12+ per hour. Wages don't increase work ethic, although they certainly can decrease it if below prevailing for there job. I don't like what I am currently making, so guess what, I look for a new job.
Before you feel sorry for his guys remember, the worst that can happen to his guys is they get fired, and paid for the hours they worked that day, no matter what wrong they do. These same employees could very well cost the OP a lot of money. If they wreck the truck, guess who gets sued, not the driver, but the owner...