In a significant turnaround, vocational training provider City & Guilds has successfully negotiated with the union Unite to avert plans for extensive job cuts and the offshore relocation of roles to Greece. This decision comes as part of a broader financial strategy following the acquisition of the organisation by the Greek firm PeopleCert.
Background of the Job Cuts
Last year, PeopleCert, which purchased City & Guilds’ training and awards division, announced intentions to eliminate approximately 400 positions in a bid to achieve £22 million in cost savings. This restructuring plan, first reported in December, faced immediate backlash from both the workforce and industry stakeholders who expressed concerns over the implications for vocational training in the UK.
Following the announcement, a presentation to PeopleCert investors suggested that UK positions would be replaced by employees abroad, raising alarms about job security. Initially, the plan included around 75 compulsory redundancies, which led to a wave of unease within the sector and threatened legal action from affected employees.
Successful Negotiations with Unite
However, following discussions between Unite and PeopleCert, a resolution has been reached that significantly reduces the number of compulsory job losses. Peter Storey, a regional officer with Unite, confirmed that the negotiations resulted in a financial settlement for those who are currently facing redundancy, thereby largely preserving employment for the majority of staff.
Storey emphasized the importance of ongoing vigilance regarding the organisation’s future under PeopleCert’s ownership. “Unite will remain vigilant of the future direction of travel at City & Guilds under PeopleCert,” he stated, indicating a commitment to monitor the situation closely.
A spokesperson for City & Guilds reiterated the company’s dedication to supporting affected employees through measures aimed at minimising the impact of the changes, including opportunities for redeployment and voluntary redundancy. They described the resulting package as “generous and supportive,” intended to benefit both the individuals involved and the organisation’s long-term objectives.
PeopleCert’s Image Management
In the wake of these developments, PeopleCert is evidently keen to improve its public perception following the acquisition. Founded in 1878, City & Guilds has long been associated with vocational training excellence, operating under the City & Guilds London Institute (CGLI). The charity has indicated plans to utilise the considerable £166 million profit from the sale to continue its philanthropic efforts, particularly in funding vocational training for those in need.
However, the transition has not been without controversy. Investigations were prompted after reports emerged that two senior directors of City & Guilds received substantial bonuses—totalling nearly £3 million—shortly after the sale, without proper authorisation. This revelation led the Charity Commission to initiate a statutory inquiry, while PeopleCert conducted its own internal investigation.
This week, the findings of the PeopleCert investigation revealed that former City & Guilds CEO Kirstie Donnelly and finance chief Abid Ismail had allegedly awarded themselves these unapproved bonuses. Both individuals have denied any wrongdoing, asserting that they will present their evidence in court to demonstrate that the bonuses were adequately approved as part of the transaction process.
In response to these controversies, CGLI has announced its own inquiry to be led by a king’s counsel. This investigation aims to uncover the rationale behind the strategic decision to sell the charity’s awarding, assessment, and training businesses.
Why it Matters
The resolution of the potential job losses at City & Guilds is a crucial development for the UK’s vocational training landscape, highlighting the delicate balance between corporate restructuring and employee welfare. As PeopleCert seeks to enhance its reputation amidst scrutiny, the outcome of ongoing inquiries will be pivotal not only for the future of City & Guilds but also for the integrity of vocational training in Britain. The situation underscores the necessity for transparency and accountability in the governance of educational charities, ensuring that their foundational mission to provide quality training is upheld in the face of commercial pressures.
