Update: W returns home after meeting last night (all the managers) in floods of tears - the worst I have ever seen her.
Basically they have said that she can only have a short period of time off with her children next August (and that was the main reason for her to move closer to home). I just held her and let her talk - didn't offer solutions.
She seemed more determined today, but not keen on going to work. She is hopefully off tomorrow, so we are going Crimbo shopping. Should be fun.