These boxes wired this way as potentially lethal. I've seen something similar to this in the UK (but worse, without GFCIs) and I had a heck of a job to persuade the EC who hacked it up that it was unsafe. Do whatever it takes to get it fixed.
The problem is that if the ground of the dryer plug becomes unglued then you get the wild neutral thing, which is well understood, but the real danger is that that wild neutral is also the "ground" of everything plugged into that box, including the metalwork of all the tools plugged into the box. In the situation described there will probably be people holding those tools, and maybe they'll be knee-deep in water.
Maybe the GFCIs will open and save the day (assuming they are double pole), maybe they wont, or at least not immediately. GFCIs are designed to work from stable power, not power of unknown voltage with the wild neutral situation.
The NEC disallows this kind of malarkey with sub-panels, and for exactly this reason. Though somehow it's OK for dryers, which baffles me, the NEC code makers must have been on acid that weekend.
The better versions of these boxes have a transformer in them, and so have a locally derived ground at the box (SDS), at least meaning the workers with tools in hand don't get shocked.