The thing is, when you look at the fruits of the labor put in, the result is nearly null. There are people who are working very hard on things that have no real long term (or short term) purpose or function for their employers, it's work that exists because "work" has to be done. When I look at the projects being busily worked on around me, nearly none of them have any value or will make a dent in the overall productivity of the larger company. These people aren't goofing off. This is the ritual of work.
People pray in the privacy of their own home but that doesn't mean there's a god listening. The same goes for the culture of "work" in most large organizations.
Sounds like a great opportunity for a more efficient competitor to undercut this company :D
There is no reason at all you could not reduce all of this to 30 hours a week and get the same amount of productivity accomplished. Why shouldn't people be compensated the same if the end result is the same? For labor intensive job where a human is working as a type of robot then hours of labour is directly correlated with hours of product (with some point of diminishing returns as you overwork people).