in theory, sure. would depend on the implementation, if the government is actually aligned with the interest of the workers. that hasn't been the case historically when tried, though it's never really been democratic. i think adding that additional layer would only complicate things and give room for corruption/abuse. but this has basically been every version of attempted socialism we've seen. soviet union, venezuela, cuba, and maoist china, as examples.
even though modern china is functionally capitalist (communist in name, in the same way north korea is a "democratic republic"), they do technically have some elements of this, like having a national labor union. the problem is there is only one labor union, which is run by the government (people are not allowed to organize into separate, private unions) and the chinese government doesnt have workers interests in mind at all. they have no problem exploiting the labor of their own people to get big trade deals and concentrate power at the top, while people in poorer surrounding countries actually have better workers rights