Maybe its down to how you interpret the letter.
Yes it states that if there is any further disruption or lack of uptake on unpaid leave/annual leave, savings they may have to temporarily suspend their ops to protect the future of the business. Call me pedantic, however you have overlooked MAY and TEMPORARILY in the letter. To me (I wonder if any others agree..) this implies that certain savings are required.
However if they are forced to "close shop" for a few days due to ongoing volcanic activitiy, this is an option to stem losses rather than to continue bleeding.
Either way, I agree that its not the best solution and I agree that it was a cheap photocopy letter. The letter is far from the doom and gloom you claim it to be.