City & Guilds scraps mass redundancies and offshoring UK jobs to Greece

City & Guilds has abandoned plans for widespread compulsory redundancies and the offshoring of hundreds of UK jobs to Greece, following intense negotiations. The vocational training organization had proposed to cut around 400 UK roles as part of a £22 million cost-cutting initiative after its training and awards business was acquired by the Greek company PeopleCert in October.

Initial proposals, revealed in December, indicated that staff in UK roles would be replaced by employees abroad. Following the sale, approximately 75 compulsory redundancies were announced, sparking significant dismay within the training sector and leading to threats of legal and industrial action. However, the union Unite announced on Thursday that negotiations with PeopleCert had resulted in a financial settlement for the few workers currently being made redundant, effectively averting mass job losses.

"Unite will remain vigilant of the future direction of travel at City & Guilds under PeopleCert," stated Peter Storey, a regional officer for the union. A spokesperson for City & Guilds added that measures have been agreed upon to minimize the impact on affected employees, maximize redeployment and voluntary redundancy opportunities, and provide enhanced support for those whose roles are ultimately eliminated. These measures, they said, constitute a generous package that supports both the affected colleagues and the organization's long-term needs.

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Unite will remain vigilant of the future direction of travel at City & Guilds under PeopleCert.

Meanwhile, PeopleCert is reportedly working to improve its public image following the acquisition. City & Guilds, founded in 1878, was previously part of a charity, the City & Guilds London Institute (CGLI), which intended to use its £166 million windfall from the sale for charitable work. However, revelations in December exposed that two senior City & Guilds directors received million-pound bonuses and significant salary increases from the new private company after the sale. This prompted a statutory inquiry by the Charity Commission and an internal investigation by PeopleCert.

PeopleCert's investigation concluded that former City & Guilds chief executive Kirstie Donnelly and finance chief Abid Ismail had awarded themselves bonuses totaling nearly £3 million without authorization. Lawyers for Donnelly and Ismail have denied these claims, asserting that all bonus payments were approved and documented as part of the transaction process. CGLI also stated on Thursday that...

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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. Together, these measures represent a generous and supportive package that delivers a positive outcome for affected colleagues while supporting the organisation’s long-term needs.