UK

FCA staff to vote on strike action as negotiations dry up

CEO Rathi has dismissed staff concerns as ‘noise’

Staff at the Financial Conduct Authority (FCA) are voting on whether or not to take industrial action in an indicative ballot call by Unite the Union, following  claims “management has refused to negotiate”.

James Baxter-Derrington
24 January 2022• 

The FCA's headquarters in East London

The union accuses management at the regulator of embarking on a programme of "severe cost-cutting", which it said is set to turn the FCA into a "bargain basement regulator".

This programme includes cutting staff pay by 10-12% and imposing an appraisal system that "punishes strong performers", while the FCA has also recently refused to allow staff representation by an independent trade union.

Other key concerns raised by Unite in its statement include a "botched" consultation process in order to rush through changes, staff outside London being placed on lower pay scales, and plans to cut staff pensions.

Chief executive Nikhil Rathi was directly acknowledged in the statement over his previous dismissal of employee complaints as "noise" and claims a reduction in pay would improve staff performance, Unite said.

Unite national officer Dominic Hook said: "Unite members will today start voting in an indicative ballot for industrial action at the FCA. The ballot will deliver a clear sense just how dire workforce morale and employee confidence is within the FCA leadership.

"Management at the FCA are attempting to implement a program of pay cuts, which has come after two years in which the staff at the FCA have worked gruelling hours to provide financial protection against Covid for borrowers, investors, small businesses and people with mortgages.

"Unite has made it clear that if introduced these cuts will make it even less likely that the FCA will be able to deliver this high standard of public service in the future. Experienced employees have been quitting the regulator in droves. More are expected to follow, as in a recent Unite survey 89.8% of staff described their morale as ‘low' or ‘very low'."

He added: "You cannot regulate the British financial system on a bargain basement basis as Nikhil Rathi clearly wishes to do. Management must enter into immediate negotiations with Unite the union in order to avoid further damage and risk to the FCA."

The update today (23 January) comes after Unite general secretary Sharon Graham wrote to the FCA in November remanding trade union recognition for its workforce, giving the regulator ten days to respond by law.

It also follows the Treasury Select Committee's announcement of a planned investigation into workplace culture practices at the FCA last June, to which the Personal Investment Management & Financial Advice Association also gave its support.