It makes even more sense if you take more of the dialogue from that scene between the Captain and Luke:
Captain: You gotta get used to wearing them chains after a while, Luke. Don't you never stop listening to them clinking, 'cause they gonna remind you what I been saying for your own good.
Luke: I wish you'd stop being so good to me, Captain.
Captain: Don't you ever talk that way to me. (Hits Luke) Never! Never! What we've got here is failure to communicate. Some men you just can't reach. So you get what we had here last week, which is the way he wants it.
You'll thank me for this one day, Luke...
And per IMDb (the Internet Movie Database), here's the synopsis of Cool Hand Luke:
A man refuses to conform to life in a rural prison.
That sounds like a good summation of life in Port Angeles for a lot of people.
So...Anyone surprised? Any thoughts? Next steps?