The City & Guilds charity has announced an investigation into the controversial sale of its commercial wing last year to private company PeopleCert.
Registered as City & Guilds London Institute (CGLI), the charity yesterday announced a separate probe to one opened by the Charity Commission in January into the deal with Greek firm PeopleCert in October and the transfer of 1,400 staff.
The charity stated that its inquiry would be led by a senior lawyer with findings shared at its autumn council.
“[It] will go ahead with the aim to establish a clear, evidence-based understanding of the factors behind the strategic decision to sell the charity’s awarding, assessment, and training businesses,” a CGLI spokesperson said.
The charity added that the probe would assess the rationale and governance processes behind the sale, and address concerns over governance, transparency and accountability.
They added that its investigation would not duplicate or prejudice any aspect of the commission’s inquiry.
CGLI’s members voted for such an inquiry in April after Save City & Guilds Action Group expressed frustration over the speed of action taken by the commission. [LINK to our story]
Neil Bates, on behalf of City & Guilds Action Group, welcomed the investigation opening and said it was essential to have “evidence-based” answers on why the commercial wing was sold.
Bates, thanking recently-appointed chair Jessica Leigh Jones, added: “This inquiry is not only about understanding what happened – it is a necessary foundation for rebuilding public trust and confidence.”
Civil Society has approached the regulator for comment.
Deal reached between company and union
Meanwhile, a deal has been struck between City & Guilds Limited, the former commercial wing of the charity now run by PeopleCert, and workers’ union Unite, which said it has received guarantees over previously feared “mass redundancies”.
Some 75 job losses have been announced since the transfer but Unite said it has reached a financial settlement for the “limited number” of redundant workers.
The union feared that around a third of transferred roles could be at risk and threatened legal action but said yesterday that compulsory job losses can now largely be avoided through voluntary redundancies.
Sharon Graham, Unite general secretary, 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 PeopleCert 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.”
