The friction I'm describing is what inevitably occurs when workers start openly discussing pay and realise that some among them are paid much more than others. I've seen it happen multiple times in different workplaces. Some longer-term employees discover that more junior, less experienced employees are being paid maybe 30% more and pretty much mentally check out instantly. They become instantly absolutely demoralised and will end up on a spiral downwards which either ends with them resigning or being given a massive pay-raise.
I've heard someone describe the phenomena as 'contractor rot', when a full-time employee discovers how much more contractors earn.