The Iron took the lead through a Karl Hawley goal but two quickfire Bury goals, including one from ex Iron loanee Nicky Ajose saw the relegated side take all three points.
Laws was disappointed his side couldn't hold on, and now admits that relegation is almost certain after Oldham's win over Yeovil.
"There is a fear factor that I can see all over the park. We can't seem to muster 90 minutes out of them. We seem to fall at certain hurdles and it's been like that all season", he told BBC Radio Humberside.
"When they scored, they could smell our fear and we were exposed at the back by a little bit of pace. Our two centre-halves were just stagnant and didn't sense the danger as the ball came through and we just fell apart.
"The simple fact of the matter is, the players earn too much money for what they give back to this football club"
The Iron boss also confirmed he would be at Glanford Park next season, hoping to rebuild the club from the foundations.
"I do feel as though the good work done by myself, Russ, Nigel and Andy has been undone.
"I'm not blaming anybody but I feel someone has come in with a big stick of dynamite and destroyed it'
