From my information at the time, the company rode a coach and horses through the predecessor to the Privacy Ordinance around the time of the 49's which was essentially the OECD guidelines. Hotel room key logs was one useful piece of data which could be used to find out if a crew member was in his room ignoring the phone or out on the town.
Legal must have had a look at what goes on in CC and reckon they can spin out a case for years if they are challenged.
It is not if a company breaks the law. It is if they care if they break the law. Sometimes the penalty is worth the industrial advantage.