My F/T job abolished & replaced with P/T 2 months later

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ctwith3

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I've been a teacher for 16 years, and am finishing my 10th year in my school district.
Due to cutbacks, my F/T position is going to be only a 60% position in the 2011-12 school year. Instead of simply cutting back my position, I, and another F/T colleague who was also cutback, received a letter stating our F/T positions are being abolished, and if we request our jobs back in writing by tomorrow afternoon, we will be automatically re-hired for the P/T positions.
Our positions always went from September 1st to July 31st, and our health insurance wasn't interrupted. Our positions are being abolished 6/30, and we will be re-hired on September 1st. From 6/30 until 9/1, I will have to pay Cobra for my family of 5.
It could be this is too personal for me to be objective, and I know there are a lot of people out of work, but abolish our positions and re-hire us for the same positions at P/T? I am also concerned about my tenure and seniority for common duties which I should be entitled to over someone who came in after me.
 
If the question is, is what they are doing legal, the answer is yes, it is, as long as you do not have a legally binding and enforceable contract or CBA that says otherwise. Seniority means zip in employment law.
 
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