Layoffs and Hours Reduction

PROPOSAL: In the event of a looming financial problem that would require a cut in staff costs, the HR committee would nominate an ad hoc committee. Staff would dicuss and approve the appointments of the individuals on the committee. The ad hoc committee will digest the issues involved and make a report to staff suggesting a way to proceed. Ways to determine where to make the cuts (in the order they should be utilized):

1) Wage reduction; Voluntary hours cut

2) Merit-based. The organization is most important here. - make department audit? Use review data? Person's program is costing money: this nominates them for cuts? Operational impact? Financial impact? What would happen if X person didn't show up for work tomorrow? What would happen if X program was cancelled tomorrow? Possibility of shuffling people to other positions. Is there some overlapping job functionality that could be eliminated?

3) Seniority - after the other two methods above have been used. Possibly as tie-breaker.