Nichols grew up in Liverpool, and left school at the age of sixteen, to work for the Halifax Building Society.
On his first day, he joined the recently founded Halifax Building Society Staff Association.
He studied part-time while becoming increasingly active in the union, including a spell as its North West Region Health and Safety Officer.
[1][2] In 1988, Nichols moved to Reading, Berkshire, to work full-time as a national officer for the union.
As leader of the union, he gained a reputation as a strong negotiator, and advocated what he described as "constructive industrial relations".