CITB freezes pay and cuts bonuses to save cash
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.
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.”