- About 75 jobs are currently at risk across City & Guilds.
- Unite fears up to one-third of the UK workforce could eventually be cut.
- The dispute adds to growing scrutiny of City & Guilds since its sale to PeopleCert.
City & Guilds is facing the threat of legal and industrial action as a row over redundancies intensifies, with unions warning that the current round of job cuts could be the start of a much larger workforce reduction programme.
The dispute centres on City & Guilds redundancies and PeopleCert job cuts, with Unite the Union accusing the qualifications provider's new owner of failing to properly engage with staff while pressing ahead with restructuring plans. Around 75 roles are currently understood to be at risk, largely within central support functions, but union officials believe the eventual impact could be far greater.
The latest clash comes less than a year after Greek awarding organisation PeopleCert completed its controversial acquisition of City & Guilds, one of Britain's oldest vocational qualifications bodies.
Fears over a bigger restructuring plan
Unite claims PeopleCert is advertising vacancies in both Greece and the UK while consulting staff over redundancies. The union alleges the company is withholding key information from employee representatives and failing to provide sufficient transparency around how jobs are being selected for removal.
According to a presentation shown to investors last year, PeopleCert identified around £22 million in potential cost savings, including £13 million linked to workforce expenses. The document suggested some roles could gradually be moved to Greece, where personnel costs are reportedly up to 50 per cent lower than in the UK.
The union believes this points to a longer-term plan to reduce roughly one-third of City & Guilds' 1,300-strong UK workforce. If realised, that could amount to more than 400 jobs.
In a letter, Unite regional officer Peter Storey reportedly accused the company of providing inadequate information about the rationale for redundancies and insufficient clarity on how affected roles were identified. He also said the union would no longer participate in the current consultation process.
Storey said there was an "absence of management ownership" that had fuelled frustration and damaged trust among staff. He also called for the involvement of conciliation service ACAS and direct engagement from interim chief executive Andy Moss.
Pressure grows on new owners
The redundancy dispute is adding to wider scrutiny of City & Guilds following its takeover by PeopleCert.
The sale triggered a statutory inquiry by the Charity Commission in January, while PeopleCert also launched its own internal investigation. Both reviews are understood to be examining issues surrounding executive remuneration following the acquisition, including reports that senior City & Guilds executives received million-pound bonuses and significant pay increases.
Unite general secretary Sharon Graham reportedly said the treatment of staff was "absolutely disgraceful" and warned that the union would use all available means to defend the workforce.
Storey reportedly said that without meaningful movement from the company, the dispute could escalate into legal and industrial action.
PeopleCert rejected the allegations and said it remains committed to conducting a meaningful consultation process in line with its legal obligations.
A company spokesperson said the business had provided extensive information on its proposals, responded to requests for additional details and continued to engage with employee representatives. The spokesperson added that no decisions had been finalised and that the consultation process was intended to explore ways of avoiding or reducing redundancies wherever possible.
PeopleCert also said the current proposals stem from a business review carried out earlier in the year and are separate from previous discussions regarding the workforce. According to the company, the changes are intended to strengthen the reliability and quality of City & Guilds qualifications.
For now, the immediate focus remains on the 75 roles under consultation. However, the growing stand-off between staff representatives and management suggests concerns about the future shape of City & Guilds are unlikely to fade anytime soon.
