Is this really uncommon?
My employer asks me to work between times each day that amount to 8 hours, and they pay me for 7. If I don't take my lunch, that's my problem. I can of course negotiate with my boss to leave early instead of taking a break, but that's by exception.
This is not the only place I've worked, nor heard of, that automatically adds unpaid time to the day for breaks. I think the difference is that my employer, unlike the one in the article, is upfront and open about what and how they pay, and never exerts any pressure on me to work through lunch.