In a significant turn of events, City & Guilds, a prominent vocational training provider, has managed to negotiate an agreement with the union Unite, effectively preventing the mass compulsory redundancies that had been on the table. This decision comes in the wake of the company’s controversial plans to cut approximately 400 UK jobs as part of a £22 million savings initiative following its acquisition by the Greek firm PeopleCert.
Background of the Proposed Job Cuts
The potential job losses, first highlighted by reports in December, were part of a cost-reduction strategy implemented after PeopleCert purchased City & Guilds’ training and awards division in October 2025. Initial disclosures indicated that these UK positions would be replaced by employees from abroad, sparking outrage within the educational sector and leading to fears of legal repercussions for the organisation.
In the wake of the initial announcement, approximately 75 compulsory redundancies were confirmed. The ensuing backlash was swift, with both public and internal pressures mounting against City & Guilds, compelling the company to reconsider its approach.
Unite’s Negotiation Success
On Thursday, Unite announced that negotiations with PeopleCert had resulted in a financial settlement aimed at supporting those who were facing redundancy, thus significantly mitigating the potential for compulsory job losses. Peter Storey, a regional officer for Unite, emphasised that the union will remain watchful of future developments at City & Guilds under PeopleCert’s ownership.
City & Guilds has communicated its commitment to providing extensive support for employees affected by these changes. A spokesperson stated, “Measures have been agreed to minimise the impact on affected colleagues, maximise opportunities for redeployment and voluntary redundancy, and provide enhanced financial and practical support for those whose roles are ultimately confirmed as redundant.” This package is intended to strike a balance between organisational needs and employee welfare.
PeopleCert’s Efforts to Restore Reputation
Meanwhile, PeopleCert is reportedly striving to mend its public image following the contentious acquisition. Founded in 1878 by the City of London alongside multiple livery companies, City & Guilds had operated as a charity under the City & Guilds London Institute (CGLI). The charitable entity indicated that it would allocate its £166 million from the sale to further its mission of providing vocational training to those in need.
However, scrutiny intensified after revelations surfaced regarding substantial bonuses awarded to City & Guilds’ top executives shortly after the sale. These bonuses, amounting to nearly £3 million, were reportedly granted without the knowledge or approval of their superiors, prompting the Charity Commission to initiate a formal inquiry.
In response, an internal investigation by PeopleCert concluded that former CEO Kirstie Donnelly and finance chief Abid Ismail had acted outside their authority. Their legal representatives assert that all bonus payments were duly approved and documented as part of the transaction process.
Ongoing Investigations and Accountability
In tandem with PeopleCert’s internal examination, CGLI has announced its own inquiry into the circumstances surrounding the sale of its awarding, assessment, and training operations. This investigation will be led by a King’s Counsel and aims to provide a comprehensive understanding of the strategic decisions that led to the sale and the subsequent management of funds.
Why it Matters
The developments at City & Guilds represent a critical juncture for the future of vocational training in the UK. With the potential for significant job losses circumvented, the focus now shifts to how the organisation and its new owners will navigate the complex landscape of public trust and corporate governance. The outcome of ongoing investigations will not only impact the individuals directly involved but also the broader educational framework and the integrity of vocational training providers in the country. Ensuring transparency and accountability in this sector is vital to maintain confidence among employees, stakeholders, and the communities they serve.
