There is no question that some companies have sick leave policies that don't do much for anyone's health. Although they may reduce absenteeism, they do not do much for productivity, morale, motivation, and job satisfaction.
When a chunk of the work force is sick and sputtering around the office, they are not going to be particularly productive. And, the rest of the employees are not going to be fully productive either, as many of them are going to annoyed and spending too much time avoiding their sneezing and coughing co-workers.
The sick leave policy that you are describing is often a work in progress, as many companies that try it are often satisfied in the beginning because there can be a drop in absenteeism. However, after a little time, malaise starts to set in. The topsiders start to wonder why so many people are sick, and they may even have their own case of the sniffles.
You and your fellow employees should discuss the situation with your manager and suggest that the company look into other options, such as a "personal time off" plan. After all, a sick leave policy should not be making the employees sick.
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