In a significant development for the vocational training sector, City & Guilds has successfully negotiated with the union Unite to prevent the mass compulsory redundancies initially proposed by its owner, PeopleCert. This agreement, reached on 18 June 2026, is set to safeguard numerous UK jobs that were at risk of being relocated to Greece as part of a £22 million cost-saving initiative.
Background of the Proposed Job Cuts
The plans to reduce approximately 400 roles in the UK were first revealed in December 2025, following PeopleCert’s acquisition of City & Guilds in October of the same year. A presentation aimed at PeopleCert investors suggested that roles vacated by UK employees would be filled by new hires overseas. This announcement instigated significant unrest both within the organisation and across the broader training sector, raising fears of potential legal and industrial action against the company.
Following the initial announcement, around 75 compulsory redundancies were confirmed, leading to widespread dissatisfaction and concern about the future of the respected training body. The prospect of offshoring jobs not only threatened employment but also risked diminishing the quality and accessibility of vocational training in the UK.
The Union’s Role in Negotiations
Union Unite stepped in to advocate for the affected workers, and after extensive negotiations, it has been confirmed that compulsory redundancies will largely be avoided. Peter Storey, a regional officer for Unite, remarked on the successful outcome: “Unite will remain vigilant of the future direction of travel at City & Guilds under PeopleCert.” The union’s vigorous efforts have resulted in a financial settlement for those few staff members who are being made redundant.
A representative for City & Guilds expressed their commitment to mitigating the impact on employees, stating that measures have been agreed upon to maximise opportunities for redeployment and voluntary redundancy. These steps, they added, would provide enhanced financial and practical support for those whose positions are confirmed as redundant.
PeopleCert’s Image and Future Directions
In light of the backlash following the acquisition, PeopleCert has been working to improve its public image. Founded in 1878 by the City of London along with several livery companies, City & Guilds has a long-standing reputation as a charitable institute, and its recent sale raised concerns about the future of its charitable initiatives. The £166 million generated from the sale is earmarked to continue supporting vocational training efforts for those in need.
However, scrutiny intensified after revelations surfaced regarding hefty bonuses awarded to City & Guilds’ former top executives following the acquisition. An investigation launched by the Charity Commission and an internal probe by PeopleCert revealed that former CEO Kirstie Donnelly and finance chief Abid Ismail had allegedly granted themselves nearly £3 million in bonuses without proper authorisation. Legal representatives for the former executives maintain that all payments were appropriately approved.
In response to these revelations, the City & Guilds London Institute (CGLI) announced it would initiate its own inquiry into the sale process, led by a King’s Counsel. This investigation aims to clarify the rationale behind the strategic decision to sell the awarding and training businesses of the charity.
Conclusion
The recent negotiations between City & Guilds and Unite represent a pivotal moment for the vocational training sector, highlighting the importance of employee advocacy in the face of corporate restructuring. While the immediate threat of mass redundancies has been averted, the ongoing inquiries into executive conduct and the long-term implications of the acquisition remain critical issues to monitor.
Why it Matters
The resolution of the redundancy crisis at City & Guilds not only preserves jobs for hundreds of employees but also reinforces the role of unions in protecting workers’ rights within larger corporate frameworks. As the landscape of vocational training continues to evolve, the outcome of the investigations into the acquisition will likely influence future policies and practices within the sector, affecting both employees and the quality of training offered to learners across the UK.
