1 Aug 2023

Job fears as veterinary groups reveal restructuring proposals

The moves by CVS and Goddard Veterinary Group – now part of VetPartners – were outlined after an industry body warned falling practice acquisitions were likely to increase bosses’ attention on limiting costs.

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Allister Webb

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Two major veterinary companies have confirmed restructuring plans that could lead to job losses after union leaders claimed those of a third risked both animal and staff welfare.

The moves by CVS and Goddard Veterinary Group – now part of VetPartners – were outlined after an industry body warned falling practice acquisitions were likely to increase bosses’ attention on limiting costs.

Although Goddard admitted “external economic factors” had contributed to its decision, CVS has sought to play down its plans, claiming they only posed a “technical risk” of redundancies. But a source familiar with the CVS proposals claimed clinical staff had been left feeling disillusioned by its process.

Competition inquiry

News of the Goddard plans comes less than a year after regulators finally gave the green light for the group’s acquisition by VetPartners following a competition inquiry.

Although no precise figures for the number of roles at risk have been disclosed, the group said the decision to begin a process where some roles were put at risk had been “incredibly difficult”, though it stressed that no clinical, patient or client-facing positions are “directly affected”.

It added: “While continuing to invest widely in clinical roles across our London branches, the impact of external economic factors, such as interest rate rises and inflation, has led to the need to review, restructure and realign a number of back office roles.

“Our focus at the moment is working with and supporting our colleagues through the consultation process.

“No decisions have yet been made on the proposals, and we are actively engaging with all those affected to seek ways to minimise the impact of any restructure.”

Meanwhile, CVS said only 14 out of its total workforce of more than 8,000 were affected by its proposals.

A spokesperson said: “We are proposing to make some changes to our operational structure that would give more autonomy to our small animal practices, as we continue to work towards our clinical and practice directors having the empowerment they need to succeed.

“The proposed changes mean a small number have been put at technical risk of redundancy and we are supporting them through the process with the aim of placing them into suitable alternative roles wherever possible.

“We anticipate the number of actual redundancies as part of this proposal to be very small, and possibly zero.”

Shift in priorities

But one staff member who contacted Vet Times said she feared the move would herald a reduction in available support for staff and was a sign of a shift in priorities towards finance – a claim denied by the company – which had left clinical workers feeling “disenfranchised”.

She said: “I have been with CVS over 10 years and we’ve always believed in the message we’ve been given to get the clinical right and the finances follow. I no longer believe that is the case.”

Meanwhile, the VMG – which has hosted two recent online sessions on navigating redundancy – has voiced concerns that trends in other areas of veterinary business are beginning to have an effect. Its president, Miles Russell, said: “As the surge in acquisitions has slowed, we’re now seeing consolidation within the corporate sector and a stronger focus on cost control to maximise returns from investments.”

He said the organisation recognised lay-offs were sometimes necessary, but warned that companies proposing redundancies also risked inflicting “long-term damage” to staff morale, which could outweigh any potential gains.

The redundancy sessions remain available to view via its Facebook page and on YouTube.

Details of the CVS and Goddard plans also emerged following a new flashpoint in the row between union officials and IVC Evidensia over its redundancy proposals.

Hundreds of support staff posts were put at risk last month by measures that the company has insisted are essential to create sustainable staffing structures in its practices.

Resources

IVC has now insisted that its plans are not connected to efforts to attract new investment that were outlined in the spring and would ensure individual practices had the resources needed to deliver services to clients.

But leaders of the British Veterinary Union, which is a branch of Unite, have claimed the measures were based on “dangerous and outdated” structures.

Unite general secretary Sharon Graham added: “These redundancies have nothing to do with improving animal care and everything to do with increasing IVC’s already substantial bottom line at the expense of workers and the animals they care for.”