I didn't realise they were area students, that does put a different slant on things although for those affected doesn't make it any better!
Regarding T&Cs, the difficulty will be exactly as described, if the income doesn't come in then it can't go out. If airport A comes to the ANSP and says they can only afford eg 70% of the agreed price then where do the cuts come from? Inevitably it will be less ATCOs or else less expensive ATCOs, less ATCOs may not be feasible to keep the operation going ergo a reduction in T&Cs, perhaps on a temporary basis, will be the other option. Not very palatable but to simply refuse and risk losing everything is also not very palatable. It has the makings of a long winter and some painful conversations are coming, not just NATS but to everyone. We only need to look at our colleagues in the airlines to see the upheaval they have suffered, if we as ATCOs think we are immune then we would be very shortsighted. And I also agree, it is a cyclical process, this appears to have the makings of a particularly harsh downward part of it though. Certainly in the many years I've been working I haven't seen such uncertainty and general pessimism.