That's one way to look at it. Another is, if people wouldn't accept jobs that don't pay a living wage, wages would rise. Supply and demand and all that.
You are talking about replacing a large number of unskilled labor positions with a small number of skilled positions. I do not see this as avoidable (nor do I believe it should be avoided) but this process is not quick nor is it painless.
Aside from the automation, keep in mind that there are people that don't necessarily need a high wage.
For instance, what is a living wage for a college student can be very low. My college job started at $7 and it paid my living expenses. Similarly, if one person in the household is earning enough to cover the bills the partner might be content earning enough for luxuries.