I'd like your opinions on how this situation could develop...
I'll keep the details to myself as I don't wish the guys involved any ill will or unnecessary trouble.
2 Family men in their early 40's, both work in a supervisory/low management capacity for a well-known touristy attraction based in the north, employed by a local authority board separate to any local authority. Said place has much CCTV around the site of which they monitor as part of their duties.
Last weekend a monthly market was occuring in their grounds, and they zoomed their camera in on a buxom young lady working there. CCTV was recording. Another worker was sent to do something close to this market... he casually (foolishly) mentioned to a random fella close by that 'her over there' was being ogled by the camera, to which the guy replied "That's my 15 yr old daughter!"
5 days later the 2 guys are suspended from work pending further investigation.

The mis-use of the camera's is of course entrenched & established practice - but I imagine the company will be looking to damage limitation and may well try to distance themselves and, as they do, hang these decent men out to dry.

What could happen?

what could happen ?..probably exactly as you describe.

Whilst not condoning the 2 blokes they will indeed be hung out to dry ( and stuff their families if they have ones) rather than perhaps a bit of an education course in how to work better.

Why the fuck are there cameras focused on a market anyway?..is there going to be no frigging spot on the British Isles without prying eyes ?

They were silly,and technically do not have a leg to stand on.
That said others who do more serious stuff get away with things because of the PC bias.

This shows the stupidity of CCTV.

The best way to deal with this is TO BAN the cameras at this market.

There is not ONE BLOKE in the world who will not use CCTV in order to oggle either the girl ( or boy ) of their dreams.

Therefore it is not these two blokes who are at fault - it is the CCTV system.

I believe 99% of CCTV is used in this way - most of the operators for Councils are low paid people in their teens and twenties. No guesses for what they watch.

CCTV should be banned in public places. It is an invasion of our personal space.