Financial Conduct Authority (FCA) staff are being balloted for strike action over changes to the regulator’s pay and benefits policy announced in October.
The FCA’s original proposals included adding an excess for staff to use the organisation’s private medical insurance (PMI) cover as premiums had doubled in the last five years, along with creating new salary bands and assessment processes.
Unite revealed its members had begun voting today as the trade union accused FCA management of refusing to negotiate with the workforce on a programme of “severe” cost-cutting, which it claims would turn the FCA into “a bargain basement” regulator.
According to the union, the FCA’s programme includes “slashing staff pay and imposing an appraisal system which punishes strong performers”.
The FCA said its proposals would ensure the regulator continued to provide “one of the best employment packages of any regulator or enforcement agency in the UK” and revealed it plans to announce the results of its consultation on its proposals by March.
Key concerns
Key staff concerns highlighted by Unite include a claim that the FCA’s staff consultation had been “botched” as management rush to implement the changes without giving staff crucially important information and around pay cuts of between 10% and 12% being imposed on a large majority of staff by abolishing “bonuses”, which Unite claims were universally regarded as part of basic pay.
Unite called the FCA’s pay increase for a “small proportion” of lowest-paid staff, “a cynical attempt to buy off opposition”.
The union also accused the FCA of imposing an unfair appraisal system which requires managers to arbitrarily downgrade a certain number of their employees even if they are performing strongly. The union added that its current indications are that this system will hit carers, disabled people and minority ethnic staff hardest.
Unite also expressed concerns about staff outside London being put on new, lower pay scales and around further plans to cut staff pension rights which Unite claimed were in the pipeline and about which management are currently refusing to discuss with the workforce.
‘Dire’ workforce morale
Unite national officer Dominic Hook said: “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.”
Hook warned that experienced employees have been quitting the regulator “in droves” with more expected to follow, as in a recent Unite survey 89.8% of staff described their morale as ‘low’ or ‘very low’.
“You cannot regulate the British financial system on a bargain basement basis as the CEO, 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,” Hook added.
Unite added it was also challenging the FCA on its refusal to allow staff to have representation by an independent trade union. The ballot will close at 5pm on 31 January.
Consultation outcome
In a statement sent to Health & Protection, an FCA spokesperson said: “Our pay and reward proposals would ensure the FCA continues to provide one of the best employment packages of any regulator or enforcement agency in the UK.
“Our proposals focus on those paid the least, with 800 colleagues below manager-level in line for salary increases of, on average, £3,800.
“We are now carefully considering the feedback received during our extensive consultation with colleagues with the aim of announcing the outcome by March.”