Things are moving in earnest pretty fast. Small skirmishes happened between Mercenary Union members and the Alliance's members, while Jack and Anya were busy eliminating spies and gathering information.
It was not easy, but Leo had the upper hand. He had more information than the enemy, and his plan was solid. He was playing the long game of chess instead of a short game of checkers.
Still, there weren't that many who believed in him. Some Mercenary Union members didn't like the fact they were attacked just by being affiliated to the Union and decided to return their badge, leaving the organization for good.
Some did stay because they knew something more than the people who left, an incident they either heard it from others or experienced it themselves. And they shared it with fellow Union members in the lobby.