Sadly, there is nobody in management to step up and stop an HR department that is out of control or maybe they support this effort to get the employees to quit.
I worked on the China project and recently HR decided that they could save money by cutting the living allowance by 70% and making the dependents fly economy class instead of business. When workers threatened to walk, management claimed that they couldn't change the HR policy but would adjust the retention bonuses to make up for it. This hush money quieted most of the discontent but one person who refused to withdraw his protest letter was denied the money and then they said that he didn't finish his contract so they didn't have to demob him.
I give it 6 months max before the Chinese kick Westinghouse to the curb for failure to complete.