STAFF at the Financial Conduct Authority (FCA) have launched a formal petition for union recognition following months of growing disenchantment with the watchdog’s leadership, according to their union.

Unite said today that staff want to be represented by an independent trade union after receiving new pay proposals that would leave three out of four workers with a 10 per cent pay cut.

The union revealed it has seen a significant rise in membership at the authority and called on bosses to heed the concerns of its workforce.

A petition has been set up to gauge interest, with the results to be presented to the management of the financial-sector regulator.

Staff are said to be unhappy with chief executive Nikhil Rathi’s transformation plans, which they believe will cut wages but are unlikely to affect the leadership team.

Unite national officer Dominic Hook said: “The significant growth in trade union membership demonstrates that the recognition of an independent trade union at the FCA is long overdue.

“Staff at the FCA are demoralised by the consultation launched by the CEO in September and feel it is a poor way to reward FCA staff who worked tirelessly throughout the pandemic to deliver credit card and mortgage payment holidays that were a lifeline to people up and down the country.”

According to staff, morale has plummeted in recent months, with Unite members angered that Mr Rathi, who is paid more than £455,000, has proposed to allow the highest-paid FCA staff to be paid even more to avoid caps on tax breaks for the holders of the largest pension pots.

An FCA spokesperson said that workers have always had a choice about trade union membership and that there is a statutory process in place for a union to seek recognition.