From: Winnipeg, MB
Engineers - yup! I had some engineers with morale in the low teens and no building progress was recorded. I let them rest until the morale was above thirty and tried them, they made some slow progress. Rested them some more - morale at 50, decent progress. I also checked the disruption/disablement at each of these times and they were comparable at each of the times I checked - meaning they were not responsible for the differences in progress on construction.
Air Support - yup! I did not realize the Aden Base Force could suffer from fatigue and left a lot of arriving British air units there to train. A couple of months later I noticed that the first few air units in the stack had a full complement of aircraft in operation but as you went down the stack the number of unserviceable aircraft went up. Some units had no serviceable aircraft. So I looked at the base force and found that the troops were fatigued in the high 90s and morale was, of course, in the toilet. So I rested it and morale came back faster than fatigue decrease. I put the unit back on duty when morale was over 30 (IIRC fatigue was still around 85) and some aircraft got repaired. More rest, morale over 50, and aircraft repair again improved a lot. Fatigue was around 65.
I solved the problem by shipping out most of the aircraft to train in India.
Don't know for sure about the rest, but if morale affects troops ability to fight, it should also affect other activities.
No matter how bad a situation is, you can always make it worse. - Chris Hadfield : An Astronaut's Guide To Life On Earth