Unite says more than half of FCA staff ‘actively looking to leave’

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Unite says more than half of FCA staff ‘actively looking to leave’
[Chris J. Ratcliffe/Bloomberg]Unite wrote to FCA boss Nikhil Rathi saying the regulator's latest pay package fails to meet the rising costs of living and was not consulted on by staff.

Unite the Union has claimed more than half of the Financial Conduct Authority’s staff are actively looking to leave the City watchdog following disagreements on pay.

Today (February 1), Unite wrote to FCA boss Nikhil Rathi asking him to pay his staff “what they deserve and what they are worth”.

Yesterday, the regulator unveiled a new pay package for staff, but Unite said the FCA put this together without consulting staff. 

On the current trajectory, the public can no longer have confidence in the FCA’s ability to deliver in the public interest.Unite the Union

The FCA said it did update an internal committee on the latest pay package, but did not conduct a consultation like it did last year.

Employees below senior management level will receive a minimum 4.5 per cent pay increase.

But the FCA said the average pay rise for these staff members will be closer to 6.5 per cent, due to other factors such as performance.

Including last year's pay rise, the FCA said staff in this pay band will have received a 14 per cent pay increase on average by the end of this year.

The FCA also said “most colleagues” have received two payments totalling £1,250 over the past six months to address the cost of living crisis.

Changes to the regulator's pay structure began last year, amid pressure from industrial action - which marked the first time staff had staged at walkout at the City watchdog.

While Unite has previously tried to become the regulator’s recognised trade union, the FCA said it has not garnered enough support from within the regulator to gain statutory recognition.

'Serious staffing crisis'

A survey, conducted earlier this month by Unite and based on 500 staff responses, suggested 56.7 per cent of the FCA’s staff are now actively looking to leave the regulator.

The City watchdog employs more than 4,000 employees.

Unite said the survey drew from a “random sample” of members and non-members of Unite, with staff “at every level and department” of the regulator taking part - from graduates to directors.

Unite national officer Dominic Hook said the survey "makes it clear that on Nikhil Rathi’s watch there is a serious staffing crisis" at the FCA.

He added: “When 97 per cent of the survey participants report facing financial strain the imposition of a 4.5 per cent pay deal is intolerable.

"The exodus of experienced staff from the FCA is pushing the regulator towards breaking point."

The survey also suggested nearly a third (61.7 per cent) of staff believe that they are not paid fairly for the work they do.

While the majority of staff (88 per cent) surveyed said they had asked for a pay uplift at least in line with inflation after “punishing pay cuts last year”.

Inflation currently sits at around 9 per cent, having peaked at 11 per cent last year.

“We are writing to you following your decision to impose a pay deal for 2023 that fails to meet the rising costs of living and your failure to consult staff at any point in reaching this decision,” said Steve O’Donnell, a regional officer at Unite, in his letter to Rathi today.

“This stands in stark contrast to the FCA’s stated commitment to staff on representation. When a financial firm fails to meet the standards of good conduct expected by the FCA, they are sent a ‘Dear CEO’ letter. 

“This is our ‘Dear CEO’ letter on behalf of FCA staff to you in light of your conduct around staff pay.”

O’Donnell said in light of the survey results, the FCA’s decision “not to take into account” the cost-of-living crisis in adjusting staff pay will force most of its staff to make tough decisions about their careers and livelihoods.

Unite claims over a fifth of FCA staff have left in the last year alone, and have been replaced by less experienced yet more expensive new joiners.

“On the current trajectory, the public can no longer have confidence in the FCA’s ability to deliver in the public interest,” said O’Donnell.

The union also claims the FCA did not respond to “a single” staff question in its last all-staff meeting on topics including pay, performance, benefits, staff shortages, treatment and morale.

FCA adds 1,136 new colleagues in 2022

A spokesperson for the FCA told FTAdviser it had made improvements to pay “beyond” what it set out last year.  

“As a result, this year, we expect colleagues to receive, on average, a base salary increase of 6.5 per cent,” they explained.

“Along with other changes, this will help us continue to rebalance our overall salaries and narrow pay gaps.”

The City watchdog has dubbed its employment package one of the best of any other regulator or enforcement agency in the UK. 

“We attract a high calibre of talent, and we’ve successfully recruited more than 1,000 new colleagues over the last 12 months as our headcount grows to meet an expanding remit,” they added.

FTAdviser understands the FCA recruited over 1,136 new staff members last year.

In April 2022, the regulator introduced a revised pay structure based on performance which it said was also designed to reward those on lower pay. 

This year, for example, staff earning below £125,000 who achieve a performance level grade of 3 out of 5 or above will receive a base salary increase of at least 4.5 per cent.  

Colleagues earning above £125,000 who achieve a performance level grade of 3 or above will see rises of at least 4 per cent.

As part of the offer, about 800 of the FCA’s lowest paid staff members received overall increases to their pay packages of around £5,500.

ruby.hinchliffe@ft.com