Really? I would have expected better from him.
Mind you, as you say, the worst was yet to happen. I believe that a LGW people are in a position to do some bargaining. The attrition is having a serious financial impact on the company. As a business man he must see that this needs to be addressed in one way or another.
Either they improve terms and conditions or they accept the fact that people will leave after a few months and therefore recruit and hold (if need be) continually, like Virgin do.
Worst coming to worst, LGW could be shut down altogether, as you say. Everyone will be offered LHR, just like WW LGW. With open skies and T5, it could be feasible. What stops them right now, is the slots.