Staff at Duke of Edinburgh's Award (DofE) have been told they must sign new contracts, which mean some will need to buy their own car.
The charity plans to scrap its fleet of cars meaning staff who travel to schools, colleges, youth groups, young offender institutions and other places will need to use their own car or public transport.
DofE says that new ways of working mean providing a fleet of company cars is not cost effective and has offered staff a one-off payment of £4,750.
Unite, a trade union representing the workers, argues that the charity’s position is unfair and has appealed directly to Prince Edward, who is a trustee of DoE.
Janet Nobbs, Unite regional officer, said: “The majority of impacted staff are on modest incomes of less than £28,000 and have been absolutely sideswiped by the news that they will now have to shell out potentially thousands of pounds just to keep their job. Unite calls on Prince Edward to intervene on behalf of these workers.
“Even the cheapest new car costs more than £10,000 and a model suitable for covering the long distances required for the job are considerably more than that. These moves are totally unreasonable, and it is shameful that the charity’s leadership is resorting to fire and rehire to force them through.”
DofE: ‘Providing a fleet of company cars was no longer cost effective’
DofE said that the shift to hybrid working was part of the reason having a fleet of company cars was no longer cost-effective.
In a statement DofE said: “The coronavirus pandemic has made the DofE’s work to support young people more important than ever; at the same time, it has affected our operations and income. As a charity, we have a responsibility to manage finances prudently.
“As part of a review of costs, we concluded that providing a fleet of company cars was no longer cost effective, especially given the move to more remote and hybrid working. Following a consultation, staff will be required from April 2022 to use their own vehicles or public transport for work-related travel.
“We greatly value our staff and are supporting colleagues with the transition to the new arrangements, including through increased mileage rates and financial assistance to staff who are purchasing or leasing their own vehicles.”
DofE’s income for the year to March 2021 was £14.74m, down from £18.33m the year before. It is partly funded through a franchise model, meaning organisations pay to license and deliver the programme for young people.
The charity held free reserves of £19.2m, the equivalent of 14 months expenditure, in line with its policy to hold free reserves of between nine and 18 months expenditure.
Staff travel costs for the year were £242,000.
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