On 15 July 2025 we sent a letter to the Executive Committee of the FCA to outline our concerns about the Hybrid Working Review. Read it here.
Letter to the Executive Committee (ExCo)
Dear ExCo,
We are writing following the conclusion of our recent indicative ballot of members on the potential changes to our hybrid working policy. We are aware that these changes could involve increased mandatory office attendance beyond the current 40% threshold. We asked members to vote on whether, if adverse changes are made, they would take industrial action short of a strike (for example, by declining to comply with an increased threshold).
A clear majority of 93% voted in favour of taking action should the FCA proceed with increasing office attendance requirements. This outcome reflects deep and widespread concern among staff about any changes to the current policy.
Hybrid working has proven to be a key policy for our organisation. It has enabled teams to remain highly productive, collaborative, and engaged, while also supporting work-life balance, inclusivity and wellbeing. A unilateral increase in office attendance not only risks undermining that progress—it also threatens trust, morale, and retention and therefore our performance as a regulator. Any changes will:
- Amount to a pay cut due to the costs of commuting and extra childcare. The cost of living continues to be a serious problem for many staff. Our last pay round was calculated on the basis of a figure of 2.75% when inflation stands at 4% (CPIH) or 3.4% (CPI).
- Make it impractical for a significant number of colleagues to work at the FCA due to the location of their homes. This is true in particular of employees based in Leeds, and sends out wholly the wrong message about the FCA’s presence outside London.
- Impact some of our most vulnerable colleagues and make it harder to fulfil your DEI agenda. There are already concerns under the existing policy about Occupational Health being instructed not to recommend home working for disabled employees even where this is medically indicated.
- Hinder the implementation of the new FCA Strategy by hitting recruitment, retention and morale.
We are particularly concerned at the idea that a comparison with the private sector is relevant to the decision. The FCA cannot match private sector pay, and moving closer to private sector working conditions can only damage our ability to attract and retain the talent on which we rely to carry out our public functions.
Our members are not resistant to change, but they do expect fairness and transparency. The strength of the indicative ballot result sends a clear message. Changes of this magnitude cannot be imposed without genuine negotiation with the union and full consideration of the impact on employees.
We are also disappointed by the way in which staff representatives have been treated by senior leadership in this process, and the failure to consult with them openly and in good faith. This failure runs contrary to the FCA values. There are a number of indications – including the article which was published briefly on Pulse on 7 July – that management has not been candid about whether it provided a steer for the outcome of the review. The Staff Representative Group has written to you that the “failure to conduct an orderly process brings into question the ability of the [SRG] to carry out its function.” The SRG also told you that they “feel let down and this is not the first time”. There have been resignations from the SRG, and it is understood that more may follow.
We regret to say that the organisation has withheld information (including the instructions provided to the consultants); and the approach to engagement with staff cannot be considered to inspire trust and confidence. Reasonable concerns have been described as “conspiracy theories”. At the Town Hall yesterday, very limited time was given to hybrid working, despite it being by far the most hotly discussed issue among staff. Questions posted on Teams on the subject got over 600 likes but were not read out or answered in the auditorium. As a regulator, we set expectations for the firms we regulate, including on culture and conduct. We are not currently leading by example.
The past cannot be changed, but we believe that this situation can be turned around. We look to you to show leadership by entering into a constructive dialogue with staff. We remain committed to working in partnership with you to find solutions that meet business needs while respecting the voice and experience of the workforce.
We believe that there is still time and opportunity to address this issue collaboratively, in a way that reflects the values we all share and the future we want to build together at the FCA.
Yours sincerely,
FCA and PSR Unite the Union Branch
