[Hugh]

You need to talk to CAB or a Union Rep, if you are in one.

Also, may I recommend, in this current economic climate, that any job (mostly) is better than none.

I would wait and see what actually happens, rather than try to plan on rumour and speculation.

You may find this link useful, and this one.

"If you don't agree, your employer is not allowed to just bring in a change. However, they can terminate your contract (by giving notice) and offer you a new one including the revised terms - effectively sacking you and taking you back on. Your employer would be expected to follow a statutory minimum dismissal procedure...

..If you accept the new contract (or carry on working after the end of the notice period) the new terms will apply to you. You'll have continuity of employment.
If you don't accept the new contract - or if you've accepted the new one but feel there was no good reason for ending the old one - you have the right to make an unfair dismissal claim provided you've at least one year's continuous service with your employer. You may also be able to claim redundancy if you have at least two years service.
If there is a sound business reason for the change, and your employer has properly consulted you and looked into any alternatives, you could find it difficult to win your claim."

There's this info from the ACAS site
"Yes. If, after negotiation, agreement on a variation of contract has proved to be impossible, an employer can - having followed the statutory dispute resolution procedures, where they apply, and observed any relevant procedural agreements - terminate the original contract, with proper notice, and offer a new contract to the employee, including the revised terms. There will be no breach of contract as a result of taking such action. If the employee accepts the new contract, continuity is preserved.

Proper notice will be as specified (or implied) in the employee's contract, or the minimum statutory notice period, whichever is the longer.
Under the law the termination will be regarded as a dismissal and it will be open to all eligible employees to claim unfair dismissal before an employment tribunal - whether they refuse to accept the new contract and leave, or are dismissed under the old contract and re-engaged.

From 1 October 2004, a new 3 step procedure for resolving disputes in the work place came into force. Employment tribunals can increase or reduce the compensation by between 10-50% if employers or employees have not fully complied with the statutory procedures. The employer must:

Step 1) Write to the employee to explain the reasons why dismissal is being considered, the time and place for a meeting to discuss the issues, and the fact that the employee has the right to be accompanied,

Step 2) Hold a face to face meeting to discuss the problem. After the meeting the employer must inform the employee of the decision, and of their right to an appeal

Step 3) Hold an appeal meeting, if required."

Ooops, 10,000th post.