Quite believable - quite often when there is considerable failure they then realise that the redundancy path is configured incorrectly as doesn't work and probably would never had.
Heard so many similar comments. It is this perception (and maybe the reality also) that needs to be changed to bring trust in their products and the company.
Why not fine the council and ring fence the council tax so that fines come out of council operational budget for salaries - less/no pay rise or increase in pension provisions - a sort of performance based fine. Your **ck-up, you pay - not the tax payer.