The Construction Industry Training Board (CITB) has introduced a raft of cost-saving measures as it grapples with a £166m reduction in its income after it cut Levy bills by 25% over the next two years.
The organisation said it would not increase pay this year and will not pay out any performance bonus payments in 2021.
Other cost-cutting measures have included the executive team taking voluntary 20% pay cuts, other colleagues also volunteering pay cuts or reduced hours, with over half the workforce having been furloughed.
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The CITB has also set out a proposal to alter its
longstanding redundancy policy, which it argued is “no longer appropriate”. The
proposal was discussed today (6 August) by CITB with unions and staff
representatives, with a decision to follow the completion of consultations.
CITB is reviewing the structure and size of the organisation
to deliver on its commitments to industry. It will consult fully with
colleagues on any proposal, which will be ready to be put forward in the coming
weeks.
Jennifer King, people director at CITB, said: “Our decision
to cut the Levy was absolutely the right one so that we can help ease the
cashflow burden on employers and invest in training. We need to do all we
can with reduced funding to protect apprenticeships and direct funding to
businesses. That does mean we need to get CITB’s finances in a stronger
position, reducing our own costs and streamlining our business, ensuring we can
meet the new skills challenges our industry faces.
“The truth is that given the very challenging economic
climate we, like so many others, cannot simply carry on with business as usual
and need to react quickly. That means making difficult choices, but they are
always made with fairness and affordability at heart, and our brilliant
colleagues and construction employers in mind.”
