No, that's ridiculous. It's not damaging to anyone. It's the reality of the serious career world, and if you want a good career in reality (vs a worker's revolution or whatever in your fantasy) it would be wise to listen.
References are a real thing. Employment history is a real thing. These are checked by HR and hiring managers for serious career jobs, when an applicant is being considered. I have received direct confirmation of this from 2 jobs where I was hired, from my references and former employers who told me that the new employer called them to ask about me.