City & Guilds, the training and qualifications body that has been quietly certifying people since 1878, is now facing potential legal and industrial action over claims it has been less than truthful about its plan to shed about 400 UK staff.
Officials at the Unite union allege the owner of the organisation has been “unlawfully withholding key information during transfer consultations” while simultaneously “advertising for new recruits when it is legally required to give staff at risk of redundancy first refusal.” It’s a bold strategy - let’s see if it pays off for them in court.
This row is the latest crisis at the embattled former vocational charity, whose business was acquired by the private company PeopleCert last autumn in a controversial deal that triggered a statutory inquiry by the Charity Commission in January, plus PeopleCert’s own internal investigation. The investigations are reportedly considering Guardian revelations about two City & Guilds executives receiving million-pound bonuses and sizeable salary increases after the sale. Nothing says “charity” like million-pound bonuses.
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 will only be the first wave, and that PeopleCert is ultimately planning to shed about one-third of its 1,300-strong UK workforce. PeopleCert said in January that there were “no plans for compulsory redundancies in the UK” - a statement that appears to have aged about as well as a milk-based vaccine.
City & Guilds was founded in 1878 by the City of London and 16 livery companies to develop a national system of technical education. It now charges fees for its accreditations to private training businesses, with about 60% of its income “underpinned by stable government funding schemes.” Having maintained a fairly modest profile for much of its 148-year history, last year’s sale put it firmly in the spotlight.
In December, the Guardian revealed how a presentation prepared for PeopleCert investors set out plans for the now-private City & Guilds to shrink its UK workforce as part of a £22m cost-cutting drive, including £13m of “personnel cost synergies” to be achieved by replacing departing UK staff with cheaper overseas hires.
In a letter sent by Unite to PeopleCert last month, the union added: “The alignment between those previously reported measures [in the investor presentation] and the current proposals gives rise to a legitimate concern that key aspects of the outcome were decided in advance.” PeopleCert said that, since preparing that investor presentation setting out how UK job losses could be achieved via “attrition,” a subsequent review identified the possibility of 75 compulsory job cuts.
The company said in a statement: “The proposals currently under consultation are the result of a subsequent review of the organisation’s structure, operating model and future requirements, which took place earlier this year and is separate to previous discussions on the workforce. No outcomes have been predetermined. The purpose of consultation is to seek feedback on the proposals, explore ways to avoid, reduce and mitigate proposed redundancies where possible, and consider alternative approaches. That process remains ongoing.”