Sounds like another mouth-breather heart attack story...
Threats don't work. If they really cared about insuring their employees, I do not think that they do but, they'd keep offering incentives for a healthier lifestyle. And yes this will show only long term results. It sounds like they got impatient or greedy and now might have to pay for not reading the fine print well enough.
Depends on the work, I hadn't looked into the business of Flambeau but now that I have, I can see it is factory work. There ain't much moving in that line of work and it would promote an unhealthy lifestyle. 10hr days would mean four off and three on, with one or two of the days off being used to rest and or relax from work related stresses. It doesn't really motivate ya to want to move or exercise three and a half hours a week or more.
They seem to be concerned with cutting costs more than productivity. They might it think it's entirely possible to cut costs so effectively as to procure a profit. This thought is completely speculative.
Personal preference, Factory/Warehouse work is shit.