The Construction Industry Training Board (CITB) has opened a formal consultation with trade unions and employee representatives over proposals to make up to 110 redundancies.
The industry training body aims to reduce the organisation’s payroll bill by 17%, saving £4.5 million per year as levy income is predicted to fall because of the impact of COVID-19.
CITB announced the suspension of a levy collection as a result of the pandemic, and will halve next year’s payment – a reduction of £242 million in levy income over three years.
The sweeping staff cuts will allow CITB to focus its expenditure on directly supporting construction employers with their key skills, training and apprenticeships needs.
It said targeted cuts would protect front-line services to construction employers, with a proportionately greater reduction in back-office and management roles.
If CITB implements the proposed change to its pay off policy, as announced by RCI earlier in August, then its redundancy programme will be cost-neutral in 2020/21.
Sarah Beale, chief executive of the CITB, said: “CITB started the year with an agreed business plan and budget, but the impact of COVID-19 has been severe. Our response – advancing apprenticeship grants and cutting levy bills – was critical to support construction employers during the crisis. But the combination of less industry activity and lower levy rates has reduced our forecast income over this three-year period. We have to cut back our back-office and management costs to maintain a constant focus on giving construction employers the direct support they need.
“It is deeply distressing to have to propose losing so many valued and committed colleagues. Everyone in the CITB team has really impressed me with their incredible efforts in helping the industry adapt to our changed situation and in delivering outstanding work to our customers. I would much rather not be in this position, but our duty is to support and be accountable to the construction industry and that is where we must focus.”
CITB aims to implement the proposed changes by the end of 2020 and to continue to deliver it’s 2020/21 business plan, the Skills Stability Plan. It will launch a four-year strategic plan, covering 2021-25 in late September.
