City & Guilds is facing allegations from the Unite union regarding plans to reduce its UK workforce by approximately 400 employees. The union claims the organisation, now owned by PeopleCert, has failed to provide transparent information during consultations related to staff transfers and has been recruiting new staff despite a statutory obligation to offer roles first to those facing redundancy.

The dispute has intensified following PeopleCert’s acquisition of City & Guilds last autumn, a move that triggered a formal inquiry by the Charity Commission earlier this year and prompted PeopleCert to launch its own internal review. Among the issues under investigation are reports that two City & Guilds executives received substantial bonuses and significant salary increases after the sale.

Peter Storey, a regional officer for Unite, accused PeopleCert of dishonesty over its workforce plans since taking over City & Guilds. He warned that without meaningful changes from the company, the conflict could escalate to legal and industrial action. The union anticipates an initial round of about 75 redundancies but contends this could be the start of a larger reduction, ultimately affecting close to one-third of the organisation’s roughly 1,300 UK employees.

Contrasting these claims, PeopleCert has publicly stated there are no intentions to impose compulsory redundancies in the UK as of January. However, a presentation revealed in December indicated that the company planned to reduce staff as part of a £22 million cost-cutting initiative. This presentation outlined expected personnel savings of £13 million and detailed strategies to downsize the workforce.

City & Guilds, established in 1878 by the City of London and a consortium of 16 livery companies to create a national technical education system, derives roughly 60% of its revenue from stable government funding schemes. Since its transition to a private company under PeopleCert, the organisation charges private training providers fees for its accreditation services.

The ongoing dispute highlights tensions in the vocational education sector amid efforts by private owners to restructure longstanding institutions in pursuit of financial efficiencies. Further developments are expected as legal and industrial actions remain potential outcomes.