From reading it sounds like they want to go from 5 days per week to 4 (not go down to 1 day per week).
I think you can either:
Term
Tell them "no," it is a full time spot and you both start looking for something new
Send them the new contract with your part time rate which is higher then the full time rate (mine is $5 more per day)
Personally, with all the issues you are having with them I would tell them the spot is a full time spot and aggressively look to fill the spot. I think there can be a problem always having your ad up as people see it and wonder why you always have a spot? Or since they have seen it many times they may assume they contacted you but haven't.

































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