More than 130 jobs could be at risk at a company owned by Cornwall and Devon’s local councils after it was declared “unviable”. The CSW Group, an organisation owned by Cornwall Council, Plymouth City Council, Devon County Council and Torbay Council, could see all 130 staff lose their jobs after the four local authorities decided to pull the plug on the whole thing.
CSW Group, formerly Cornwall and Devon Careers Ltd, Connexions then Careers South West Ltd, is solely owned by the four local councils to provide training and career opportunities to young people and businesses in the region. The company is based at Poseidon House in Plymouth and has supported tens of thousands of people of all ages across the two counties, with links to many large local organisations.
However, the four local authorities have now announced that CSW Group, which was first launched almost 30 years ago, is no longer a viable business. A look at Companies House reveals a £14.4m pension blackhole in 2022. A note by accountants Bishop Fleming said there is a pension scheme future net asset of £4.6m for 2023 but it was not recognised in the financial statement. For 2023, the accounts show a £1.8m profit.
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The joint statement said: “Following a review of their ownership contract of CSW Group, its four owners (Cornwall Council, Devon County Council, Plymouth City Council, and Torbay Council) have reluctantly concluded that its funding and operational position has changed such that the company is no longer viable.
“As such, the cabinets of each authority have agreed that a new approach must be taken that ensures there is minimal impact on the young people who use the education and employment support services provided by CSW. All owner authorities are also committed to retaining the company’s significant expertise, which for Devon, Plymouth and Torbay means reintegrating CSW staff ‘in-house’. Cornwall will take the same approach and/or commission an expert provider to take them on.”
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About the job losses which the decision could lead to, the local authorities said they are working to TUPE/transfer CSW staff either in-house or with a commissioned provider and minimise any job losses. The statement added: “Whilst clearly a difficult moment of change for staff, owners and customers, the four local authorities believe that now is the right time to make this change if the expertise and high-quality service that has benefitted the peninsula for the past 30 years is to be preserved.
“Owners and management will be seeking to work closely in support of wider staff members and customers who are not to be part of the transfer process, helping them to find new opportunities within the peninsula where appropriate.
“We remain committed to ensuring young people receive the highest level of support around career choices and when making the transition between education and employment.
“We would like to thank the staff of CSW Group for their commitment and dedication to supporting young people for more than three decades and look forward to working with them to make this transition as smooth as possible.”