Now, what if a person does not want, or does not have the ability to learn a
skill that will increase his value, should he be given salary increases
automatically.

He should be shown the door. An entry level job is a way to introduce unskilled
people with a lot of potential to a workplace. You make a lot more money off
the skilled help than off the unskilled. Why should the other workers have to
"carry' a mini-wager? The lower corporate profits that result from employees
producing marginally or inefficiently tend to be reflected in less generous
wages and benefits across the board. Get the guy or gal into a position where
he or she can make a good wage and make some serious money for the company at
the same time- and if they cannot rise or will not rise to the opportunity a
good manager will replace them as soon as possible.

The most expensive position to a progressively managed company is probably the
one that only justifies a minimum wage.