- The Central Arbitration Committee accepted an application from Unite and the FDA Trade Union to represent more than 5,000 staff at the Financial Conduct Authority, which had declined to recognise them earlier this year. A workplace ballot could follow as early as December.
- The rule change is what made it possible. Unions previously had to demonstrate majority support among a workforce before applying; since April they need only a simple majority of votes cast. Unite’s 2022 application at the same regulator failed precisely on the old test.
- The effect has been immediate and broad. Recognition applications have doubled year on year since the reforms took effect, and the 2026 list shows unions moving into less traditional territory including technology and legal firms.
- A further obligation starts on October 30, when employers must give trade unions access to workplaces to recruit members under the new workers’ rights package.
What Happened?
The unions are negotiating with the FCA over which employees, from department heads downward, would be covered by collective bargaining on pay, hours and holidays. Robert Eagleton of the FDA Trade Union said they have cleared the first hurdle and are very confident of winning the ballot. The FCA and Unite did not respond to requests for comment. Applications typically seek recognition for a defined group of workers rather than an entire company.
Why It Matters?
The change in threshold is the substantive development and it applies to every UK employer, not only this one. Requiring proof of majority support before an application is a high bar that failed Unite at this same regulator in 2022; requiring only a majority of votes cast is a much lower one, and applications have doubled as a result. Employers with UK operations should understand that a workforce group which previously could not reach the starting line now can, and that from October 30 unions have a right of access to recruit on site. For businesses with British staff this is a change in operating conditions rather than a political development. The sectors being targeted are the notable part. Organised labour moving into technology and professional services rather than traditional industrial employers suggests the reforms have opened workplaces where unionisation has been rare, and that is where the effect on costs and working practices would be least anticipated. The FCA is itself an instructive case: a regulator with more than 5,000 staff whose employees are organising under rules its own government created. For readers whose firms are supervised by the FCA, collective bargaining over pay and hours at the regulator is worth noting for what it may mean for its capacity and responsiveness, though that is speculative at this stage. This sits alongside a UK policy agenda that includes a budget on October 28 widely expected to raise capital gains tax and possibly impose a windfall levy on domestic banks.
What Next?
A ballot at the FCA could occur as early as December, and the unions say they expect to win. The October 30 workplace access requirement is the next scheduled change affecting all employers. Watch the volume and sectoral spread of recognition applications, which have already doubled, as the measure of how far the reforms reach. The October 28 budget is the larger UK policy event in the same window.
Affected Tickers and Coins: EWU
Source: Bloomberg
