Don't be too hard on the OP. Unions do stifle efficiency and new ways of doing things, and yes seniority shouldn't be the first reason for keeping someone. I think companies need the flexibility to make changes that keep them healthy. But you have to admit, The company definitely targets the higher paid, older employees. That's not right either. Also, criteria for layoffs has been kept a big mystery and that's flat out wrong too.
I wouldn't mind seeing some kind of accountability at the management level for how they treat people. Maybe they still layoff people, it happens. But they'd better show the reason some were laid off and not others. And they'd better have legitimate cause for PIPing somebody rather than making things up to try to push people out before a layoff just to save money.
I doubt anybody is interested, but if you read RW Johnson's book "Or Forfiet Freedom", basically the rational for the Credo, you'll find that it had everything to do with labor relations. Johnson argued that, had industry treated employees respectfully and strived to take good care of their employees, they wouldn't have found their hands tied by union strong arming at the time that unions became strong in this country. He also argued that by paying employees well, a company was creating customers that would buy their products and services. If done by industry as a whole, he argued that the great depression wouldn't have been nearly as bad.
Personally, I think that the management at this company needs to study it's history lest it repeat itself. Only this time, rather than unions, it's being fought with Lawyers. I think RWJ was a real visionary for his time. He must be rolling over in his grave about now.
That said, I doubt anybody has the stomach to fight such a battle like our grandparents did in the 30's and 40's. It's our own apathy that allows companies to screw us like this. So OP, I don't think that your idea is so nuts. I just think we're too fat and lethargic to stand up and make the sacrifices necesary to force a change.