Work situation evolving

Since I hired on as a 'temporary' employee at University Hospital last July, I asked my supervisor for some clarification today, and was told this:

I have been talking with Pathology HR, with my boss, and attending meetings to get a “lay of the land” regarding your employment status. Your temp status is not because the university does not want to pay benefits; our department follows Lean principles, meaning that we are very careful in hiring so that we do not over hire, which is a huge expense to our budget. With so many technology changes happening right now in the pathology department – the new laboratory software starting next spring, voice recognition software gaining use, and pathologists who type their own reports, we are re-evaluating our transcription needs and trying to look into the future.

Another issue that has impacted the pathology department is the opening of the new Mott hospital - all departments have been asked to re-evaluate all staffing – no unauthorized overtime or automatic replacement hires are allowed at this time due to very high increased expenses related to the new hospital without corresponding increased revenues.

Regarding your specific situation as a temporary employee, you cannot work more than 12 months consecutively or you must be let go or hired. Since you have been in the department since July 2011, you will need to take a month off in order to continue employment here since I do not have the authority to hire any new employees at this time. Because you are planning a vacation in July, we may need to extend your time off to comply with university policy.

I do know that we may have a couple of transcription staff retiring this year at some point, so we may have transcription openings in the near future. I will certainly make you aware of any job postings when that time comes.