(Bloomberg) — Employees of the U.K.’s markets watchdog voted Monday on whether to pursue “industrial action,” the latest escalation in a dispute between the regulator and staff over compensation.
Unite, a union representing staff at the Financial Conduct Authority, has launched the ballot after the regulator’s management had “refused to negotiate with the workforce on a program of severe cost-cutting,” the union said in an emailed statement Monday. The FCA’s program included paring back bonuses to rank-and-file employees and imposing an appraisal system that would disadvantage “strong performers,” the union said.
The changes are part of FCA Chief Executive Officer Nikhil Rathi’s attempts to revamp the regulator. The watchdog had previously decided to stop paying bonuses to its top officials amid criticism for its failure to stop a multimillion-pound bond scandal that hit retail investors.
The FCA has proposed making no cuts to base pay and increasing salaries for about 800 staff from April, according to a person familiar with the regulator’s thinking. The watchdog’s executive committee has separately proposed a minimum 5% base hike for all employees below managerial or technical specialist level who clearly meet or exceed performance goals, the person 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 U.K.,” a spokesperson said. “We are now carefully considering the feedback received during our extensive consultation with colleagues with the aim of announcing the outcome by March.”
Read more: Britain’s Finance Regulator Cancels Bonus Pay for Top Officials
(Updates with details on pay proposals in fourth paragraph.)
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