This kind of thing happens all the time in real life. It's basically the grownup version of the mentality behind schoolyard bullying: better to shun the victim or join in the bullying than paint a target on your own back. Even Joey's father says right at the beginning that Joey should have just kept his mouth shut and that he basically brought his death upon himself. The murders weren't just punishment for the people who talked, they were a fear tactic designed to try and keep anyone from talking. Also, there's an element of "better the devil you know" at play too - it's unclear exactly how accurate Friendly's description of the state of things before he took over is, but it clearly hadn't ever been an exactly fair and non-exploitative system. The majority of workers had probably rationalised the conditions by thinking "sure this sucks but it could be a whole lot worse"; if Friendly goes, there's no telling what kind of system could take his place.
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