Yes punish the entire employee group for the few bad apples that exist in every single company worldwide. This is the classic fear, divide and conquer tactic that EK uses to neuter the pilot group and make sure there is no sense of comaraderie in the group and certainly no chance they would ever put their foot down and finally say enough is enough.
Managers at EK lack the essential skills, ethics and knowledge to do the job properly and, as such, rule by fear and do it because they can due to all the reasons mentioned above. Could there be an easier job in aviation than that of a manager/VP at EK? As long as you are willing to sell your soul to the devil for a few tax free dollars, it is an easy ride for them. They can do whatever they please.