Unite members back strike action at FCA in dispute over pay

Unionised staff at the Financial Conduct Authority have backed strike action for the first time in the UK regulator’s nine-year history after failing to come to an agreement in a long-running dispute over pay and working conditions.

But the backing for a walkout in the vote organised by Unite came from less than 300 of the FCA’s 4,000 staff, according to figures released by the union that showed it has 640 members at the regulator. Unite said 75 per cent of members who took part in the ballot had backed a strike, with just under 90 per cent backing action short of a strike, on a turnout of 62 per cent.

The union, which is fighting for recognition by management, had previously refused to disclose how many members it had at the FCA as it stepped up its dispute with the regulator.

Staff at the regulator “have made it very clear that the proposed changes to staff pay and conditions are completely unacceptable”, said Sharon Graham, Unite general secretary, adding that “FCA management must now address the serious concerns of their employees”.

The dispute centres on a proposed restructuring by chief executive Nikhil Rathi who has upset some staff with proposed changes to pay and working practices as part of a divisive transformation plan.

He has also refused to recognise Unite, arguing the trade union had not met the statutory test for recognition, which allows for staff in various groups to be represented by a union if there is majority support within those groups.

The union has argued that the proposals amounted to pay cuts for many staff, which would be inappropriate when they were having to deal with the fallout from Brexit and the Covid-19 pandemic.

“We acknowledge the recent vote, we respect colleagues’ decision and understand the strength of feeling about some of the changes we have made,” the FCA said in a statement.

“Our new employment package is highly competitive, providing fair, competitive pay at all levels,” it added, claiming the proposals would make its pay and benefits package “one of the best, if not the best, of any regulatory or enforcement agency in the UK”.

It said that most staff would receive an average 7 per cent increase in base pay this year and more than 12 per cent over the next two years, with an additional one-off cash payment of 4 per cent in May.

Rathi has said previously that his planned overhaul of pay structure, which was the subject of a months-long staff consultation, would improve performance and close gender and ethnic pay gaps.

Alan Scott, Unite officer, said the FCA’s refusal to recognise the union “further damage[d] the standing of the organisation”.

Unite called for the FCA to meet its representatives to resolve the dispute. It added that it had contacted the Advisory, Conciliation and Arbitration Service and that it would start planning next steps for industrial action.