Japan has been doing it like this for years. And it's much better. Pay people properly, and encourage them to be the best they can be (even for jobs that are so-called "unskilled") and then everyone's a winner.
Basically most of the world except Noth America pay their waiters wages that don't depend on tips. Sure some places allow additional tipping, but it's not a mandatory fee and the workers don't have to get it to make a living.