Union in pay warning to Financial Conduct Authority over restructuring

The unions have officially written to the chief executive of the Financial Conduct Authority (FCA) out of fears that an ongoing restructuring could lower workers’ take-home wages.

Unite the union, which is seeking legal recognition from the city’s regulator, said there were “serious concerns” over the consultation which is expected to end within a week.

Members accused chief executive Nikhil Rathi of conducting a consultation which “lacks transparency” and could seriously undermine the regulator’s ability to carry out its work while staff leave.

Nikhil Rathi, Chief Executive Officer of FCA (FCA / PA)

Dominic Hook, National Head of Unite, said: “The Financial Conduct Authority needs to take a step back from the fundamentally flawed consultation on wages and conditions that will have a profound impact on the workforce across the board. regulator.

“Despite Unite having spent months asking for more information and for FCA to have meaningful discussions with its workforce, management continues to dismiss staff concerns and has so far failed to justify these damaging proposals.

“Unite, the union will continue to defend the employees of the regulator whom management simply rejects as making ‘noise’. The dedicated and committed workforce in London and Edinburgh deserves much better treatment than they are currently receiving. “

Members say the new plans will see most employees’ salaries cut by at least 10%, as senior management pay levels are increased.

The FCA said that previously, pay ranges were adjusted to ensure lower paid employees received higher wages.

However, the organization has removed performance-related bonuses, which means the take-home pay for many is expected to drop.

Unite’s latest intervention comes as the FT revealed that the FCA was recruiting private law firms to help process new hire applications following reports of high departures.

According to the FT, the regulator has spent nearly £ 1million on headhunters this year to stem the tide of staff departures, although the FCA says retention levels are at typical levels.

Mr Rathi defended the restructuring with MPs last week, telling them there would be “noise” about the changes for a while, but they were needed.

An FCA spokesperson said: ‘The package we are consulting on means that we will continue to offer one of the best and most competitive packages of any regulator or law enforcement agency in the UK. .

“Our consultation focuses on the lowest paid colleagues – 800 of whom will receive a pay rise of £ 3,800 on average under the proposals.

“We have listened to our colleagues and identified areas where we plan to adjust our proposals in response to feedback. We will continue to listen to our colleagues as the consultation draws to a close.

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