Most of them get paid a special wage that is greatly reduced (egregiously low) because tips are customary in that line of work. Wage laws are actually written this way and it's different in different areas.
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Ok.
In my country tip is not significant because waiters (sales girls and boys) get paid, it's not a matter of contention unless when you go to some high-end places and the people there (not necessarilly waiters) feels they are entitled to your money or they won't serve you right.
I can't say for sure if the pay is good as there is no standard but it's normally comparable to what other regular folks earn unless your place is really small or your boss really greedy.
The laws that allow this have to change, and they only change if employees impose themselves to the bosses!
It is not the goodwill of the customers who have to pay for this service, but the boss of that waiter. The employer charged for the service to the clients, in this charge he must include the salary of the its employees.
In my country, although the waiters do not get paid on time and work long hours, they always know how much they will earn by the end of the day, and that salary is paid by the boss. The tips you can earn are an extra, never a salary!