Wing Commander Fowler, I thought had more "pluck" than that. But I am being too harsh. I understand the fear that you must have for both yourself and your family.
The question is, which way do you and your fellow employees want your relationship with FR to go? Do you want to be respected more or less by the company? Do you want to feel the pressure to operate in questionable circumstances or do you want the company to respect your judgement? What sort of company do you want to be working for in 5 years time (assuming you don't bail out)?
It seems to me that it is the employees' fear that the FR management revels in. Like any bully, they won't stop until they are given a bloody nose. Once that's done, a bully generally tries to become your best friend.
You folks can't even maintain your present conditions (let alone improve them) as individuals. That can only be done together. It's your call.
Good luck,
LP