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Really reckon you might have to look for a new job, I guess you work in a small town too? You get those cliquey types and it's impossible, happened to my missus in her job, even the boss started targeting her, pathetic really as they lost a good worker to a rival company.
 

Go Troppo Mate.

Seriously, go on the sick with stress and screw them for all you can. The boss has been negligent in not noticing the bullying and when it comes to him not wanting to pay you any more you can inform him of the reason for your stress and that the company is at fault.
You could go on a right bender really to make the stress more realistic, sitting outside a pub near work, unkempt and draining jugs would well do your cause some good, if anyone from work turns up then just stand up and pish your pants.


From what your saying you cant confront or win,

then you should go on the sick and say your stressed, you have been bullied explaining how the bully and boss are close and its drove you to drink and worrying.

you get ya point across and you screw the company.
 
Quite simply if you give in they win. Be strong and confront the tvvat head on, for example call his bluff and make sure it's in front of everyone, but make sure you stay in control and choose your words wisely or they could quickly turn the situation. This exchange will soon make everyone present, including the big boss aware of your situation. In a nutshell, you really have to man up and force the issue.
This said, don't worry if the situation doesn't turn in your favour, as you then you can take it to the unions, tribunal etc. If the top man has a inch of intellect or humility he will quickly stop any escalation.

Best of luck mate.

P.S. Tried and tested by me early on in my career.
 
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