British Cycling is to furlough 90 members of staff – around one third of its workforce – due to the ongoing coronavirus pandemic, the governing body’s CEO has confirmed.
The organisation said that it was forced to make the decision for financial reasons as it faces a drop in income of up to £4 million in the coming months due to the cancellation of events.
Last month, it confirmed that it had suspended all sanctioned events until at least the end of April.
> Racing, sportives and other British Cycling sanctioned events suspended until at least the end of April due to coronavirus
Since then, world cycling’s governing body, the UCI, has suspended all racing until at least 1 June, with all national federations required to follow suit.
The road national championships, due to have been held in the West Midlands in June, have already been postponed.
British Cycling CEO Julie Harrington said: “The COVID-19 virus means every section of society is facing an unprecedented challenge, and sport is no different.
“For British Cycling, it meant suspending all our sanctioned activity, including the events registered with us. That was the right decision and one taken to protect the health and well-being of everyone involved in what we do.
“British Cycling is a not-for-profit organisation with any revenue we generate invested into the sport. Because a significant part of that revenue comes from events – including a proportion of entry fees and other associated payments which go toward administering the sport – and because the majority of cycling events take place over the spring and summer months, we are planning for a significant drop in income of around £4 million.
“As the governing body for cycling in Britain, we are committed to honouring our duty to act in the best interests of our members and our sport.
“Therefore, we are taking steps to protect the federation, as well as the jobs of our employees, by using some of the measures announced by the Government in recent weeks, including the furloughing of some of our staff through the Coronavirus Job Retention Scheme.”
Under the scheme, employers are able to keep workers on the payroll instead of laying them off and can claim up to 80 per cent of their wages, up to a maximum of £2,500 per month per employee, from the government.
Harrington said: “At this stage, 90 roles – around a third of the workforce – will be furloughed, the majority in April and some in May.
“This is a tough decision we have taken with care. We know that it may mean difficulties for some employees who are being furloughed so we have put in place measures to support them, including offering financial advice and access to learning and development tools. Other steps we are taking to manage the impact on our revenue include a 10 per cent pay cut in May and June for myself and members of my leadership team.
“Employees who are being furloughed are among those we will rely on to ensure our sport can return with strength and, while they cannot work for British Cycling during this period, they are still part of our team.”
She continued: “I would like to thank the Government for the measures they have taken which mean we can preserve jobs. I would also like to thank British Cycling’s members, Sport England, UK Sport and our lead partner HSBC UK for their continued backing in difficult times.
“I know that today many people are discovering or rediscovering the benefits of cycling for transport and for exercise. I also know that across the country there are many people who care deeply about our sport – volunteers, event organisers and officials, and others – who are looking forward to the day when organised cycling can return.
“I want to reiterate to all of them that British Cycling retains its commitment to working hard for our members, for our sport and for anyone who loves getting on a bike,” Harrington added.
British Cycling had already been facing an uncertain future in financial terms after HSBC UK announced in last February that it was ending its sponsorship four years early.
> Blow to British Cycling as it confirms HSBC UK to end sponsorship four years early
Harrington said at the time that the organisation was actively searching for a replacement sponsor although the financial impact of the subsequent coronavirus pandemic across all sectors of business mean that is an even more difficult task now than it appeared just six weeks ago.
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4 comments
Why not a 20% cut in their wages like all the staff they've furloughed?
80% pay for 0% work or 90% pay for 100% work, I'd rather have the 80% pay!
Based purely on this article it reads that the employees get 100% of their pay, and GC can claim 80% of that cost back from the government, leaving them only effectively paying 20%. It may not be the actual situation but it does say above its the employers who get to claim the 80%.
It depends - employers can reduce pay while employees are furloughed, but only with the agreement of the employee. If the choice is furlough on 80%, or lay off on 0% though, it may not be much of a choice for the employee.
Whether BC have done this, or are paying full pay, isn't clear from the article.