City & Guilds faces legal and industrial action over plans to cut hundreds of jobs
City & Guilds is facing union threats of legal and industrial action over plans to cut about 400 UK jobs.
Intelligence analysis by GPT-5.4 Mini
The former charity, now owned by PeopleCert, is under pressure after Unite accused it of hiding information and breaching redundancy rules. PeopleCert says no outcomes are fixed and that consultation on the restructuring is still under way.
City & Guilds is like a place that gives people skill badges. It wants to shrink its team, and the workers say the rules are not being followed, like changing players in the middle of a game before everyone agrees.
Analysis
What is happening
City & Guilds is facing possible legal and industrial action after Unite accused its owner, PeopleCert, of being "dishonest" about plans to cut around 400 UK jobs. The union says the company has withheld key information during transfer consultations and has advertised for new recruits even though staff at risk of redundancy should have first refusal.
Why the row has escalated
The dispute is part of a wider crisis around the former vocational charity, which PeopleCert bought last autumn. That sale has already triggered a statutory inquiry by the Charity Commission, alongside an internal investigation by PeopleCert. Those probes are understood to be looking at Guardian reporting on million-pound bonuses and large salary increases for two City & Guilds executives after the deal.
What the company says
Unite says the current round of about 75 redundancies may be only the first wave and that PeopleCert could eventually cut about a third of its 1,300 UK staff. The union also points to an investor presentation from December that described a £22m cost-cutting drive and £13m of personnel cost synergies, much of it expected to come from replacing departing UK staff with cheaper overseas hires.
PeopleCert says a later review of the business identified the possibility of 75 compulsory job cuts and that the current proposals are the result of a separate review of the organisation’s structure, operating model and future needs. The company says no outcomes have been predetermined and that consultation is intended to explore ways to avoid or reduce redundancies.
Key points
- Unite says City & Guilds and owner PeopleCert are withholding information during redundancy consultations.
- The union says the company may be planning to cut about one-third of its 1,300 UK staff.
- PeopleCert says the current proposals come from a separate review and that no outcomes have been predetermined.
- The dispute sits alongside an existing Charity Commission inquiry and an internal investigation into the sale and executive bonuses.
The consultation could still lead to fewer compulsory redundancies if the company accepts alternative ways to cut costs. If that happens, City & Guilds may still reshape its business without a prolonged dispute.
If Unite’s claims are upheld, the row could turn into legal and industrial action and slow the restructuring. The job cuts could also widen beyond the first 75 redundancies, deepening mistrust around the takeover and its cost-cutting plans.
