I will first recount a story from some 20+ years ago. Back then I was probably SE (or high E at least):
Flying YYZ-YHZ on the last flight of the day. Delayed, not obscenely, but probably the last flight to arrive at YHZ that night. We get to the luggage hall in YHZ. 2-3 bags come out (none of them with priority tags)... and then the belt stops. Guess what. The luggage handlers stopped what they were doing and went home. I could literally see the container full of luggage parked in the sterile area at the other end of the belt. So could the lonely security guard... but there was nothing we could do. Why? Because the folks in charge of unloading our luggage on to the belt ran out of f..ks to give. Were they justified in doing so? I don't know. Do I think 20+ years made a big difference in union and employee relations? I doubt it.
As far as tracking and notifications... AC unfortunately has a poor record in passenger-affecting IT initiatives. Ability to see in your mobile app where your bag is at any given moment (last point scanned) is pretty much table stakes for major US airlines. Not on AC.
So, like anything else it boils down to People, Process and Technology. In this case:
1) People need to give a f..k. This is a function of having the right people, but also of having productive labour relations, incentives etc.
2) Technology needs to support people and off-load / automate the effort.
3) Better process will be great, but first the current processes will need to be bolstered by 1 & 2 above.