CITB cuts employee pay increase to protect Levy funds

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The CITB has cut its planned pay increase this year and has confirmed that no bonus payments will be made in 2021 to protect the industry’s Levy funds in the face of Covid pressures

The Construction Industry Training Board has announced a range of measures to reduce operating costs as it adjusts to the new post-Covid landscape.

The measures are part of the CITB’s Covid-19 response. It follows the decision in June to cut Levy bills by 25% across the next two years – an income reduction of £166m.

Despite this reduced income, CITB has accelerated apprenticeship grants, and prioritised apprenticeship support and direct employer funding within its Skills Stability Plan.

Cost-cutting measures

Due to this reduced income, CITB is unable to apply the previously planned pay increase this year and has confirmed that no performance bonus payments will be made in 2021 as it takes action to reduce expenditure and protect the industry’s Levy funds.

Other cost-cutting measures include the executive team taking voluntary 20% pay cuts, other colleagues also volunteering pay cuts or reduced hours, over half of colleagues having been furloughed and making full use of all reserves.

Additionally, CITB has set out a proposal to alter its longstanding redundancy policy, which is no longer appropriate. The proposal was discussed by CITB with unions and staff representatives, with a decision to follow the completion of consultations.

The organisation is reviewing its structure and size to deliver on its commitments to industry.

It says it will consult fully with colleagues on any proposal, which will be ready to be put forward in the coming weeks.

Protect apprenticeships

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.”

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