Unite Threatens Action Over City & Guilds UK Job Cuts

City & Guilds, a vocational training and qualifications provider, is facing potential legal and industrial action from the Unite union over plans that could eliminate about 400 jobs in the UK. The dispute comes after the business was acquired by PeopleCert last autumn and as consultation continues over proposed redundancies.

Unite alleges the company has failed to meet legal duties during the process, including by withholding information and advertising roles while staff are at risk of losing their jobs.

Unite says PeopleCert has been misleading about its staffing intentions since taking over City & Guilds. The union expects an initial round of about 75 redundancies to be followed by further job losses, bringing the total to roughly one-third of the organisation’s 1,300-strong UK workforce.

PeopleCert said in January there were no plans for compulsory redundancies in the UK. Unite argues that statement conflicts with information it says has since emerged about cost-reduction plans connected to the acquisition.

The union has pointed to a December investor presentation that it says outlined a £22 million cost-cutting drive, including £13 million in “personnel cost synergies.” Unite says the presentation described achieving those savings largely by replacing departing UK employees with cheaper overseas hires.

Union alleges consultation failures and recruitment breach

Unite alleges PeopleCert has unlawfully withheld key information during transfer consultations. The union also claims the company has advertised for new recruits while staff at risk of redundancy should be given first refusal for roles.

The dispute follows scrutiny of the sale of City & Guilds, which previously operated as a charity. A statutory inquiry by the Charity Commission was opened in January into the transaction.

PeopleCert says review is separate and no outcomes set

PeopleCert has said the proposals under consultation stem from a separate review of the organisation’s structure, operating model and future requirements carried out earlier this year. The company says this review was distinct from earlier discussions referenced by Unite.

The company said no outcomes have been predetermined and that the consultation is intended to gather feedback, explore ways to avoid or reduce redundancies, and consider alternatives. It said the process remains ongoing.

Unite has warned that, without significant movement from PeopleCert, the dispute could escalate through legal and industrial action. The next key development will be the outcome of consultations and any formal steps taken by either side.