In a significant development for the vocational training sector, City & Guilds, a prominent provider in the field, has successfully averted plans for mass compulsory redundancies and the offshoring of numerous UK jobs to Greece. This outcome follows negotiations between the company’s new owner, PeopleCert, and the union Unite, which aimed to protect employment amidst a controversial cost-cutting initiative.
Background on Proposed Job Cuts
The plans to eliminate approximately 400 UK positions were initially disclosed in December 2025, as part of a £22 million cost-reduction strategy after PeopleCert’s acquisition of City & Guilds in October of that year. Internal documents intended for PeopleCert investors indicated that UK roles were to be supplanted by staff in Greece, a move that sparked outrage within the training community. Following the acquisition, around 75 redundancies were initially announced, prompting fears of further job losses and potential legal challenges.
Successful Union Negotiations
However, on Thursday, Unite announced that it had reached a financial settlement with PeopleCert that effectively minimises compulsory job losses. Peter Storey, a regional officer for the union, emphasised the necessity of ongoing vigilance regarding the future trajectory of City & Guilds under PeopleCert’s leadership. “Unite will remain vigilant of the future direction of travel at City & Guilds under PeopleCert,” he remarked, highlighting the union’s commitment to safeguarding its members.
City & Guilds has reassured affected employees that measures are in place to mitigate the impact of the situation. A company 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 comprehensive approach aims to ensure that those impacted receive adequate support while the organisation aligns with its long-term goals.
PeopleCert’s Image Rehabilitation Efforts
In the wake of the acquisition, PeopleCert has sought to enhance its public image, particularly following criticism regarding executive compensation. The City & Guilds brand, which has been a cornerstone of vocational training since its founding in 1878, was previously operated under the charitable umbrella of the City & Guilds London Institute (CGLI). Following the sale, CGLI announced plans to utilise its £166 million windfall to support its charitable initiatives, including funding for vocational training for those in need.
However, revelations in December about the substantial bonuses awarded to City & Guilds’ top executives raised serious questions about the governance of the organisation post-sale. Reports indicated that former chief executive Kirstie Donnelly and finance chief Abid Ismail had approved nearly £3 million in bonuses without proper authorisation. This prompted the Charity Commission to initiate a statutory inquiry into the matter, while PeopleCert also launched an internal investigation.
Recently, PeopleCert concluded its investigation, affirming that the bonuses were awarded without the knowledge of higher management. Lawyers representing Donnelly and Ismail have denied any wrongdoing, asserting that all bonus payments were appropriately authorised as part of the broader transaction process. In a parallel effort, CGLI announced its own independent inquiry into the sale, which will be conducted by a king’s counsel to ascertain the motivations behind the decision to sell the charity’s training and assessment divisions.
Why it Matters
The resolution of this situation carries significant implications for the vocational training landscape in the UK. By averting large-scale job losses, City & Guilds not only protects the livelihoods of its employees but also reinforces its commitment to maintaining a robust training infrastructure essential for the nation’s workforce development. The ongoing scrutiny of executive compensation and governance practices within the organisation underscores the need for accountability and transparency, especially in entities that operate under charitable auspices. As the sector evolves, the outcomes of these inquiries may shape the future trajectory of vocational training and its governance in the UK.
