The response from HR has been forwarded to me. It states that there has been no policy change with respect honoring ALT entitlements.
The change to the staff travel manual was to prevent the reissue of ALT if a lower class of travel was accepted.
It would appear this is being interrupted by some stations as the ok to downgrade staff. Evidence of this happening is required. If it is proven to be happening they will fix it.
I was asked if I knew anyone else that had been downgraded and to forward on the HR details so thought I would mention it here.