In a significant turnaround, City & Guilds, a prominent vocational training provider, has reached a pivotal agreement with the Unite union, effectively averting planned compulsory job losses and the controversial offshoring of positions to Greece. This development comes in the wake of a £22 million cost-cutting initiative proposed by PeopleCert, the Greek company that acquired City & Guilds last year.
Background on Job Cuts and Offshoring Plans
Initial reports indicated that PeopleCert intended to eliminate approximately 400 roles in the UK as part of its restructuring efforts following the acquisition in October 2025. The decision to replace UK staff with overseas workers sparked considerable concern within the vocational training sector, leading to fears of legal and industrial actions against the organisation. The initial announcement of 75 compulsory redundancies exacerbated the situation, prompting widespread criticism and unrest among employees.
However, following negotiations, Unite announced on Thursday that it had successfully secured a financial settlement that would mitigate the number of compulsory redundancies. Peter Storey, a regional officer for Unite, expressed cautious optimism, noting that the union would continue to closely monitor the future trajectory of City & Guilds under PeopleCert’s ownership.
Support Measures for Affected Employees
In a bid to address the concerns of affected employees, a representative from City & Guilds stated that measures had been established to not only minimise the impact on those at risk of redundancy but also to enhance opportunities for redeployment and voluntary redundancy. Furthermore, the organisation has pledged to provide increased financial and practical support for those whose roles have been confirmed as redundant.
“This package represents a generous and supportive approach that balances the needs of our colleagues with the long-term requirements of our organisation,” the spokesperson remarked, underlining the commitment to treating employees fairly during this transition.
Scrutiny and Investigations into Management Practices
As City & Guilds navigates this challenging period, it faces scrutiny not only from employees but also from regulatory bodies. Following revelations that senior executives had awarded themselves substantial bonuses post-acquisition, the Charity Commission has launched a statutory inquiry into the circumstances surrounding these payments. Reports indicated that the former chief executive, Kirstie Donnelly, and finance chief, Abid Ismail, had received bonuses totalling nearly £3 million without appropriate authorisation, a claim they deny, asserting that all payments were approved and documented.
In response to these findings, City & Guilds London Institute (CGLI), the charity that previously owned City & Guilds, announced its own inquiry. This investigation, led by a King’s Counsel, aims to establish a clear, evidence-based understanding of the motivations behind the strategic decision to sell the charity’s training and assessment divisions.
Why it Matters
The resolution of the redundancy issue at City & Guilds not only protects hundreds of jobs but also reflects broader trends within the vocational education sector, which is grappling with the implications of corporate ownership and financial accountability. The ongoing investigations into management practices highlight the need for transparency and ethical governance, particularly within organisations that have historically operated under charitable principles. As the situation develops, the outcomes may serve as a crucial case study for the future of vocational training and its alignment with public interests in the UK.