Unite the union has accused City & Guilds of acting dishonestly over plans to cut hundreds of UK jobs, warning that it is preparing to pursue legal and industrial action unless the company provides full disclosure about its restructuring proposals.
Officials from Unite allege that PeopleCert, the private company that acquired City & Guilds’ commercial operations last year, has been “unlawfully withholding key information during transfer consultations” and has continued to advertise for new recruits while staff at risk of redundancy should legally be given first refusal on available roles. In a letter sent to PeopleCert last month, seen by the Guardian, the union said the alignment between previously reported cost-cutting plans and the current redundancy proposals “gives rise to a legitimate concern that key aspects of the outcome were decided in advance”.
Union claims dishonesty from the outset
Peter Storey, Unite regional officer, said: “PeopleCert has been dishonest [about its staffing plans] from the moment it took over City & Guilds. Without significant movement from the company, this dispute will continue to escalate, including through potential legal and industrial action.” The union has already indicated it will no longer participate in the redundancy consultation process, citing “inadequate disclosure” and “insufficient transparency” on the part of the employer.
Unite predicts that the current round of about 75 redundancies is only the first wave. It believes PeopleCert is ultimately planning to shed around one-third of its 1,300-strong UK workforce. That forecast is supported by an investor presentation prepared for PeopleCert’s backers in December, which set out plans to shrink City & Guilds’ UK headcount as part of a £22 million cost-cutting drive. The presentation identified £13 million in “personnel cost synergies” that would largely be achieved by replacing departing UK staff with cheaper overseas hires, with some roles expected to be relocated to Greece where personnel costs are reportedly up to 50 per cent lower.
The dispute in detail
Unite is demanding guarantees over jobs, an extension of the consultation period, good-faith conduct in the consultation process, and an immediate recruitment freeze. The union argues that PeopleCert’s advertising of new roles in both Greece and the UK while redundancy consultations are under way breaches legal requirements that give staff at risk of redundancy first refusal on suitable alternative employment.
The dispute marks the latest crisis for the former vocational charity, which was founded in 1878 by the City of London and 16 livery companies to develop a national system of technical education. City & Guilds held a Royal Charter granted in 1900 and historically derived about 60 per cent of its income from stable government funding schemes. In October 2025, PeopleCert, a global leader in professional and language skills certification, acquired the awarding, assessment and training businesses of the City & Guilds of London Institute (CGLI) for net proceeds of approximately £166 million, financed through a €150 million loan from Eurobank and the company’s own cash reserves. The combined entity’s annual revenue was estimated at around £300 million.
As part of the acquisition, PeopleCert also took ownership of City & Guilds’ London headquarters and a training site in Cumbria. Around 1,400 staff transferred to PeopleCert at the time.
Company response and background
PeopleCert has said that the proposals currently under consultation are the result of a subsequent review of the organisation’s structure, operating model and future requirements, which took place earlier this year and is separate to previous discussions on the workforce. In a statement, the company said: “No outcomes have been predetermined. The purpose of consultation is to seek feedback on the proposals, explore ways to avoid, reduce and mitigate proposed redundancies where possible, and consider alternative approaches. That process remains ongoing.” In January, PeopleCert had stated there were “no plans for compulsory redundancies in the UK”.
The company’s internal investigation, commissioned by owner Byron Nicolaides, is understood to be considering revelations concerning a pair of City & Guilds executives receiving million-pound bonuses and sizeable salary increases after the sale. Kirstie Donnelly, former CEO, was awarded a £1.7 million bonus and Abid Ismail, former CFO, received £1.2 million, both in the November 2025 salary run. The cumulative pay of the top six executives reportedly rose by about 240 per cent in the financial year to approximately £6.2 million, up from £1.8 million. Following the Guardian’s reporting and subsequent investigations, both Donnelly and Ismail were placed on leave and later sacked without financial settlement after an internal investigation by lawyers acting for Nicolaides. Solicitors representing both executives are now taking legal action against the company. Other senior executives who received bonuses are also reportedly at risk of redundancy.
The sale itself triggered a statutory inquiry by the Charity Commission in January 2026. The Commission is examining the information provided by the charity regarding the sale, particularly in light of public reporting on the deal and executive bonuses. It is also looking at the trustees’ decision-making process, including the “coexistence agreement” with PeopleCert and allegations that bidders were not given accurate estimates for upgrading the legacy IT system, which could cost up to £50 million. Separately, members of CGLI formed the City & Guilds Action Group, calling for an independent inquiry into the conduct of the Executive and Trustee Board, regulatory intervention beyond the Charity Commission, and a public statement from the Department for Education regarding consultation on the sale. In April 2026, CGLI members voted in favour of an independent inquiry, but there are accusations that the trustee board is delaying the process.
Dame Ann Limb, the former Chair of CGLI who called the sale a “landmark transaction”, stepped down in January 2026 and has stated she would not take her seat in the Lords until matters related to her previous voluntary roles are resolved.
Beyond the union dispute, PeopleCert faces a separate threat to its government contracts. The Home Office is reviewing its contractual relationships with PeopleCert, considering alternative providers for its language-skills verification work post-November 2027. Concerns have been raised about Nicolaides’s opaque offshore interests and the transfer of profits from UK taxpayer-funded contracts to tax havens. A decision to withdraw the contract could impact PeopleCert’s revenue by approximately £20 million. A government official noted that the profit margins reported to investors from these contracts would be considered “very poor value-for-money”.
