Your right on the money my friend, damed if you do, damed if you don't. Having had previous experience in exactly what you on about I can say that the end result ultimately and obviously depends on an individuals approach.
Firstly I suggest giving whatever it is (defect/problem) some careful and calculated pre-thought/reasoning in your own mind (not with another pilot) as to how it will effect the safety and/or normal ops of the aircraft involved.
Having formulated an opinion with regards to the matter you can logically approach and discuss the issue with your chief. If your Chief is dumb enough not to listen, speak to a director who will more than likely go kick some arse, and as a last resort I would then suggest picking up the phone and getting CASA invloved.
Having said all of that, the way in which you approach the chief or whoever it may be, is absolutely crucial; don't go in with your head on fire as though you're on a search and destroy mission, remain calm and if what you say isn't heard then go away no fuss have a further think about things and then if satisfied you're in the right then take it to the next level.
Finally no job is worth your life, at the end of the day a prospective employer (if worth working for) will respect you for you decission; resignantion is far better than being given the sack.
