Union withdraws City & Guilds legal threat after offshoring assurances

Union officials have called off a workforce redundancy dispute with City & Guilds bosses that threatened to boil over into “legal and industrial action”.

Today, Unite the Union said the awarding businesses’ management has provided “guarantees” that plans for mass redundancies and offshoring to Greece “will not go ahead”.

They are understood to have accepted terms offered by new owner PeopleCert that included voluntary redundancy for all 75 roles that were at risk, an additional payment equivalent to one month’s basic salary, payment in lieu of notice, positive references and “outplacement”  support worth £500.

Employees will be asked to sign a “standard” settlement agreement with up to £500 plus VAT each available towards legal advice.

Unite general secretary Sharon Graham said: “City & Guilds workers will be breathing a small sigh of relief now that these guarantees have been given and a financial settlement reached.”

A spokesperson for the union confirmed that all threats of legal and industrial action have now been called off following the settlement.

City & Guilds currently has about 1,300 staff in the UK, with many of the roles at risk of redundancy understood to be in the company’s business central support functions.

The agreement follows public criticism from the union bosses allegedly “advertising for jobs” in Greece during negotiations and failing to involve staff early enough in the redundancy process.

Awarding and training giant City & Guilds was bought by Greek-owned PeopleCert last October, after 148 years as a not-for-profit operation owned by the City & Guilds of London Institute, now known as the City & Guilds Foundation.

Details of PeopleCert’s plans to shed about a third of City & Guilds’ workforce were outlined in a presentation for investors published last year that appeared to have been accidentally published online.

The presentation suggested plans to relocate some staff roles to Greece, where personnel costs are “up to 50 per cent lower”, through “natural employee churn”.

Unite said bosses have now provided assurances that staff offshoring is off the table.

Unite regional officer Peter Storey said: “Unite will remain vigilant of the future direction of travel at City & Guilds under PeopleCert.

“Protecting the long-term security of City & Guilds staff is our top priority and I urge all workers that are still not members to join Unite: Strong unionised workplaces deliver stronger outcomes for workers.”

A spokesperson for City & Guilds Limited (CGL) said: “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.”