I think your system is better, frankly. I honestly think most people would rather have stability in their income, and I'd feel better about everyone being guaranteed a minimum, livable wage.
That said, this is the system we have here, and while I do not like it I'm going to harm those at the bottom because of some sort of misguided sense of principle.
I know. In Spain there's usually a small fee called "service fee" (do you guys have it too?) that's basically like a tip, but it's already in the price of what you order, so you don't need to pay for your food and then leave a tip. You just leave a tip if, as I said before, the service was better than you expected or you just want to say "thanks" in a way.
But yeah, crazy stuff going on over there