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It probably exists to keep business in line, I don't think there's any kind of environmentalist groups or regulations in this centralized government, or if there is, it is very weak and exploitable. We don't see any evidence of trade unionists or anything really that'd get in the way of a business's endeavors in terms of ethics and this seems to be the kind of world where bribery is either legal, or so commonly done behind the scenes that no one cares.
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It's interesting you brought up trade unions, because they did actually exist within a piece of concept art for the Oddworld Movie, though from the presence of the Gloktigi I doubt they did much besides exploit the workers.
