I don't want to suggest that you ease up either, as I don't know the whole story or strategy, however, from experience in another Industry, in a similar situation .... the troops fought like terriers to oppose an illogical new management direction.
After much time banging their heads against many brick walls and not receiving any outside support, they came to the conclusion that management were legally entitled to do what they wanted with the company, and the best way forward was to ensure the troops received the best possible outcome from the new arrangements.
By then, management were keen to have all the white noise removed ... and generous entitlements were negotiated.
You can only go so far in saving Management, and the Company, from themselves. There comes a point, and I don't know if that point has been reached in this situation yet, when you need to ask yourself ... how can we make the most out of this bad situation.