City & Guilds is facing potential legal and industrial action over claims it has been “dishonest” about plans to cut about 400 UK jobs. The Unite union alleges that the owner, PeopleCert, has unlawfully withheld key information during redundancy consultations and advertised for new recruits while legally required to offer existing staff first refusal.
The dispute marks another crisis for the former vocational charity, which was acquired by PeopleCert last autumn. The sale triggered a Charity Commission inquiry in January and an internal investigation by PeopleCert, reportedly focusing on revelations that two City & Guilds executives received million-pound bonuses and salary increases after the deal.
Unite regional officer Peter Storey said: “PeopleCert has been dishonest [about its staffing plans] from the moment it took over City & Guilds. Without significant movement from the company, this dispute will continue to escalate, including through potential legal and industrial action.” The union predicts that the current round of about 75 redundancies is just the first wave, with PeopleCert ultimately planning to cut one-third of its 1,300-strong UK workforce.
PeopleCert previously stated in January that there were “no plans for compulsory redundancies in the UK”. However, a December investor presentation, revealed by the Guardian, outlined plans to shrink the UK workforce as part of a £22m cost-cutting drive, including £13m of “personnel cost synergies” from replacing departing UK staff with cheaper overseas hires.
In a letter to PeopleCert, Unite said the alignment between the investor presentation and current proposals “gives rise to a legitimate concern that key aspects of the outcome were decided in advance”. PeopleCert responded that the proposals resulted from a separate review and that no outcomes have been predetermined, with consultation ongoing to explore ways to avoid or reduce redundancies.
