~.r E~ 41Z f1f L REPORT INTERNATIONAL CIVIL SERVICE COMMISSION GENERAL ASSEMBLY UNITED NATIONS OF THE. New York, 1976

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1 41Z f1f L ~.r E~ REPORT OF THE INTERNATIONAL CIVIL SERVICE COMMISSION i GENERAL ASSEMBLY OFFICIAL RECORDS : THIRTY -FIRST SESSION SUPPLEMENT No. 30 (A/31/30) UNITED NATIONS New York, 1976

2 NOTE Symbols of United Nations documents are composed of capital letters combined with figures. Mention of such a symbol indicates a reference to a United Nations document.

3 T 1 CONTENTS /Original : English/ y Paragraphs Page Abbreviations vii Letter of transmittal e e. e viii Chapter Part one. Annualreport of the International CivilService Commission A. Acceptances of the state 3 3 B. Sessions C. Methods of work of the Ccmmission D. Operation of the post adjustment system E. Additional matters referred to the Commission by the General Assembly Career development. and promotions in relation to reclassification of posts Allowances and benefits for staff in the General Service category Day-care centres for children of staff members F. Programme of work of the Commission.... e Part two. Reportofthe International Civil Service Commission onthe review of the United Nations salary system I. INTRODUCTION p II. SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS AND OF BUDGETARY IMPLICATIONS A. Structure of categories e e B. Structure of grades C. Professional and higher categories D. General Service category E. Summary of budgetary implications iii

4 Y CONTENTS (continued) Paragraphs Page Chapt er Part two. Reportof the International Civil Service Commissionon the review of the United Nations salary system (continued) III. INTERNATIONAL CIVIL SERVICE IV. STRUCTURE OF CATEGORIES AND GRADES A. Structure of categories B. Structure of grades V. PROFESSIONAL AND HIGHER CATEGORIES A. Broad principle for the determination of the conditions of service B. Application of the principle Selection of the highest-paid national civil service Equivalencies of grades between the two systems Elements of - remuneration to be compared Place at which comparison is to be made C. Level of remuneration Margin between United Nations and United States remuneration T D. Structure of remuneration Description Gross and net salaries, staff assessment, post adjustment (a) History : gross and net salaries, staff assessment 190 i91 64 (b) History : post adjustment (c) Previous action by the commission (d) Consideration by the Commission in (e) Views of the organizations and staff (f) Staff assessment (g) Differentiation of remuneration between staff with dependants and those without (h) Post adjustment rates iv-

5 7 V CONTENTS (continued) Paragraphs Page Chapter Part two. Reportof the International Civil Service Commissionon the review of the United Nations salarysystem continued V. PROFESSIONAL AND HIGHER CATEGORIES (continued) D. Structure of remuneration (continued) 2. Gross and net salaries, staff assessment, post adjustment (continued) (i) Scales of staff assessment, salaries and post adjustment (j) Consolidation of one or more classes of post adjustment into base salary (k) Conclusions ?s (1) Summary of costs (a) Pensionable remuneration (n) Other changes in the post adjustment system....' Selective allowances (a) Dependency allowances (i) Spouse allowance (ii) Children's allowance (iii) Secondary dependant's allowance (b) Expatriation benefits g (i) Repatriation grant (ii) Home leave and travel to visit dependants (iii) Education grant... ; (a) Ad hoc entitlements (i) Entitlements on appointment, change of duty station or separation (ii) Termination indemnities (iii) Non-renewal of fixed-term appointments (d) Language incentives E. Conditions of service in the field T 104 8',c' -v-

6 C CONTENTS (continued) Chapter Part two. Report of the International Civil Service Commission on the view of the United Nations salary system (continued) VI. GENERAL SERVICE CATEGORY A. Determination of salary levels B. Allowances and other entitlements C. Staff assessment and pensionable remuneration Annexes I. Documentary references to reports of previous review bodies II. Movement of post adjustment classifications of headquarters duty stations and of weighted average of post adjustments (WAPA), 1 April June III. Staff of the organizations applying the United Nations common system. of salaries and allowances 117 IV. Equivalencies of grades between the United States Federal Civil Service and the United Nations 123 V. Comparison of net remuneration of United States and United Nations officials 125 Vi. Summary of circumstances and effects of decisions by the General Assembly to consolidate one or more classes of post adjustment into base salary, from 1962 to present 129 VII. Scales of staff assessment, salary scales and schedules of post adjustments with consolidation of four classes of post adjustment VIII. Scales of staff assessment, salary scales and schedules of post adjustments with consolidation of five classes of post adjustment 1 O 134 IX. Comparison of remuneration of the Professional category and the General Service category at headquarters duty stations 138 -vi-

7 ABBREVIATIONS ACC FAO FICSA GATT IAEA ICAO ICSC ICJ ILO IMCO ITC ITU UNDP UNESCO UNHCR UNICEF UNITAR UNRWA UNU UPU WHO WIPO WMO Administrative Committee on Co-ordination Food and Agriculture Organization of the United Nations Federation of International Civil Servants' Associations General Agreement on Tariffs and Trade International Atomic Energy Agency International Civil Aviation Organization International Civil Service Commission International Court of Justice international Labour Organisation Inter-Governmental Maritime.Consultative Organization International Trade Centre UNCTAD/GATT International Telecommunication Union United Nations Development Programme United Nations Educational, Scientific and Cultural Organization Office of the United Nations High Commissioner for Refugees United Nations Children's Fund United Nations Institute for Training and Research United Nations Relief and Works Agency for Palestine Refugees in the Near East United Nations University Universal Postal Union World Health Organization World Intellectual Property organization World Meteorological Organization -vii-

8 LETTER OF TRANSMITTAL 16 August 1976 Sir, I have the honour to transmit herewith the second annual report of the International Civil Service Commission, prepared in accordance with article 17 of the statute of the Commission approved by the General Assembly in its resolution 3357 (XXIX). The major part of this report consists of the Commission's report on the review of the United Nations salary system with which it was charged by the General Assembly by resolutions 3042 (XXVIII), 3357 (XXIX) and 3413 (XXX). A summary of the main conclusions reached by the Commission and of the recommendations formulated by it is included. Part one of the report contains indications as to the way in which the Commission intends to undertake its next major task, namely the assumption of its responsibilities under articles 11 and 12 of its statute with respect to the salaries of the General Service category. I should be grateful if you would submit this report to the General Assembly and, as provided by article 17 of the statute, also transmit it to the governing organs of the other organizations participating in the work of the Commission, through their executive heads, and to staff representatives. I avail myself of this opportunity to renew to you, Sir, the assurances of my highest consideration. (Signed) Raul A. QUIJANO Chairman of the International Civil Service Commission His Excellency Mr. Kurt Waldheim Secretary-General United Nations New York, N.Y viii-

9 i Y 1r Part One ANNUAL REPORT OF THE INTERNATIONAL CIVIL SERVICE C0MMISSION -1-

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11 i T a 1. In accordance with article 17 of its statute (General Assembly resolution 3357 (XXIX), annex), the International Civil Service Commission 1/ presents the following report on its work in 1976, for submission to the General Assembly at its thirty-first-session and for transmission to the governing organs of the other organizations participating in its work, through their executive heads, and to staff representatives. 2. As requested by the General Assembly in resolutions 3357 (XXIX) of 18 December 1974 and 3418 A (XXX) of 8 December 1975, the Commission has devoted its main efforts during 1977 to the completion of the review of the United Nations salary system ; its report on that review constitutes part two of the present report. A. Acceptances of the statute 3. Since the preparation of the first annual report of the International Civil Service Commission, 3/ two further organizations which participate in the United Nations common system have notified the Secretary-General of their acceptance of the statute of the Commission, in accordance with the provisions of article 1, paragraph 3, of that statute : the World Intellectual Property Organization (WIPO), on 6 October 1975, and the International Civil Aviation Organization (ICAO), on 2 December In addition to the United Nations itself, 10 organizations have thus accepted the statute to date. / The two remaining organizations, 4/ although not having formally accepted the statute, have participated actively in the Commission's work. B. Sessions 4. The Commission held two sessions during 1976 : the third session, at the United Nations Headquarters, from 8 to 26 March 1976, and the fourth session, at the headquarters of the Food and Agricultural Organization of the United Nation.- (FA0), by invitation of the Director-General of FAO, from 28 June to 16 July The main item on the agenda of both those sessions was the continuation of the review of the United Nations salary system. Other questions considered are dealt with in the following paragraphs. 1/ For the membership of the Commission, see Official Records of the General Assembly, Thirtieth Session, Supplement No. 30 (A/10030), para. 4. 2/ Official Records of the General Assembly, Thirtieth Session, Supplement No. 30 (A/10030). 3/ International Labour Organisation ; Food and Agriculture Organization of the United Nations ; United Nations Educational, Scientific and Cultural Organization ; International Civil Aviation Organization ; World Health Organization ; Universal Postal Union; International Telecommunication Union ; World Meteorological Organization ; Inter-Governmental Maritime Consultative Organization ; World Intellectual Property Organization. 4/ International Atomic Energy Agency, General Agreement on Tariffs and Trade. -3-

12 . r C. Methodsof work of the Commission 6. In accordance with the intention stated in paragraph 19 of its first annual report, 1/ the Commission has continued to ensure that both the executive heads of the participating organizations and the representatives of the staff are. given every opportunity to make known their views on the matters considered by it. It has benefited from written statements from the Administrative Committee on Co-ordination (ACC) and the Consultative Committee on Administrative Questions as well as from.the Federation of International Civil Servants' Associations (FICSA) and other staff representatives. The representatives of the executive heads of the participating organizations, through the Consultative Committee on Administrative Questions, and of FICSA have participated in its meetings, as have also from time to time other staff representatives on particular matters, in conformity with the rules of procedure. The Commission has thus ensured that the conclusions it has reached, while they inevitably cannot always give complete satisfaction to both parties, at least are taken in full knowledge of their views. 7. At its fourth session it considered- a question which had arisen in connexion with the participation, in technical studies being prepared for the Commission, of staff members who might be regarded as having a special interest in the results. The Chairman undertook to take into account the views expressed by members in exercising his responsibilities under article 8,. paragraph 1, of the statute for directing the work of the Commission and its staff. D. Operation ofthe post adjustment system 8'. The.Commission has continued to exercise the responsibilities given to it under article 11 (b)'and (c) of its statute for keeping up to date the schedules of classification of duty stations for the purpose of applying post adjustments and the rates of daily subsistence allowances. The Chairman, acting under the authority delegated to him by the Commission at its first session, has issued monthly circulars announcing changes in these schedules. ~ 9. Changes which have occurred during the period 1 April 1975 to 1 June 1976 in the post adjustment classification of the headquarters duty stations and in the weighted average of post adjustments of all duty stations are shown in annex II. Despite continuing inflation, the general level of post adjustments has shown only a modest increase ; increases in duty stations where the local currency strengthened in relation to the United States dollar (for example Geneva, Paris) were offset by decreases owing to renewed weakening of some currencies (for example the British.pound and the Italian lira) in terms of the United States dollar. The net increase in the level of the weighted average over the period April 1975 to June 1976 was 4.87 per cent. The movement of daily subsistence rates, reflecting general increases in hotel and restaurant prices, was similar. 10. In addition, at the third session the Commission considered two questions concerning the operation of the post adjustment system. It took note of the report of an ad hoc meeting of consultants held in November 1975 ; and, having been authorized by the General Assembly by resolution 3418 A (XXX) to establish a permanent subsidiary body on post adjustment matters, it approved terms of reference for this body (to be known as the Advisory Committee on Post Adjustment -4-

13 T }~, Questions) and decided on the procedure to be followed in selecting its members. Having regard to the General Assembly's request that due account be taken of equitable geographical distribution, it decided that the Committee should consist of six members, including one member of the Commission who would be ex officio Chairman, from the following geographical regions : Africa, Asia, Latin America,. - Eastern Europe, and Western Europe and other States. Mr. Pascal Frochaux was appointed ex officio Chairman. In view of the urgency of constituting the Committee so that it could give advice on outstanding matters, the Commission decided to invite those former members of the previous Expert Committee on Post Adjustment who had served as consultants in 1975 to continue to lend their services for a further year and. also to seek a suitable candidate from the Latin American region. The Committee was thus constituted as follows : Mr. Pascal Frochaux (Switzerland), Chairman ; Mr. Youri Batovrin (Union of Soviet Socialist Republics) ; Mr. Geoffrey H. Moore (United States of America) ; Mr. E. N. Omaboe (Ghana) ; Mr. B. Ramamurti (India) ; and one member from the Latin American region, to be appointed. 11. At its fourth session, the Commission considered a;question regarding the post adjustment index for Rome, brought to its attention by the Professional Staff Association of FAO under rule 6, paragraph 2 (g), of the rules of procedure (see ICSC/1). The staff had submitted that in circumstances of heavy devaluation of the local currency in relation to the United States dollar, accompanied by rapid inflation, such as had occurred in Italy in recent months, the normal operation of the post adjustment system did not adequately protect the staff against losses. They requested that certain increases in the cost of living, such as those resulting from sharp increases in taxes on consumer goods, be treated specially, for example, by waiving of the four-month waiting period for port adjustment changes. Having examined the situation month by month over the past two years, the Commission concluded that in general no undue lag had occurred between the :actual rise in the post adjustment index and the class of post adjustment in effect. It therefore decided that no special action in respect of Rome was warranted, but decided to study further the possible need for special measures in such circumstances (see pare. 245 below). E. Additional matters referred to the Commission by the General Assembly 12. At its third session, the Cession examined three questions which had been referred to it by the General Assembly at its thirtieth session ;.. Career development and promotions in relation to reclassificationof posts, 13. The Advisory Committee on Administrative and Budgetary Questions, in its report on the' Secretary-General's programme budget proposals for the biennium , noted that 63 reclassifications of posts to and within the Professional and higher categories were requested. 51 It recalled the conclusion it had reached two years earlier that in a great mfr cases such requests involved basically an attempt to improve promotion prospects rather than a genuine increase in 5/ Official Records of the General Assembly, Thirtieth Session, Supplement No. 8 (A/10008 and Corr. 1-3), paras

14 i" t responsibilities attaching to the posts in question. 6/ While recommending approval, of the majority of the proposed reclassifications, the Advisory Committee added the following remark in paragraph 62 of its report : "The Advisory Committee trusts that the ICSC, in the context of the study of salaries and related allowances for staff in the Professional and higher categories, will make recommendations to the General Assembly also on the related questions of career development and promotions - thereby putting an end to the undesirable current practice of reclassifying posts mainly as a means of providing promotion opportunities to the incumbents. Accordingly the Advisory Committee recommends that no further reclassifications of posts be requested by the Secretary-General until the ICSC has considered and reported on this question." 7/ 14. The Commission noted that this problem was brought to its attention in the specific context of the United Nations programme budget only and was stated by the Advisory Committee on Administrative and Budgetary Questions to relate, in part at least, to the absence of a consistent post classification structure in the United Nations Secretariat. While similar problems undoubtedly arose from time to time in the other participating organizations and the problem of grade creep", to which the Advisory Committee alluded, was a general one, the post classification systems which exist in all but two of the other organizations provided some measure of control over the validity of reclassification proposals. 15. The Commission therefore decided that it was not appropriate for it to attempt to deal with this problem in the context of the general review of the salary system. It noted' that a job classification-`section had recently been established in the United Nations Secretariat and that it therefore seemed not unreasonable to expect that, by the time of the submission of the next biennial programme budget proposals in 1977, the Secretary-General would have at his disposal some means by which comparative examination of the reclassification requests could be made. It decided to invite the Secretary-General to provide it, in due course, with an analysis of the problem of reclassification in the United Nations Secretariat and information on progress being made towards instituting a means of control through a consistent job classification system. It would compare that with information on the way the problem was handled. in other organizations and take it into account in its consideration in 1977 of the relevant topics (job classification, career development, promotion policy) under articles 13 and 14 of its statute, with a view to submitting a report to the General Assembly in Since the United Nations programme budget was adopted on a biennial basis and few reclassifications should be necessary in the nonbudget year, this delay should present no serious difficulty. 2. Allowances and benefits for staff in the General Service category, 16. Following. & request submitted to the General Assembly by the Secretary-General (A/C.5/1716) that he be authorized, as an exceptional and temporary measure, to 6/ Ibid., Twenty-eighthSession,Supplement No. 8 (A/9008 and Corr. 1), para, / Ibid., ThirtiethSession,Supplement No. 8 (A/10008 and Corr. 1-3). -6-

15 place a broader interpretation on the provision of regulation 3.4 (d) of the United Nations Staff Regulations (which empowers him to determine the rates and. conditions of dependency allowances of the General Service category, due regard being given to the circumstances in the locality in which the office is located, the General Assembly, on the recommendation of the Fifth Committee, 8/ invited the Commission, in resolution 3493 (XXX) of 15 December 1975, to give consideration to the possibility of examining the principles and criteria, underlying the determination of allowances and benefits payable to General Service staff as part of its comprehensive review of the United Nations salary system. The Fifth Committee's recommendation was based on a report of the Advisory Committee (A/10422), which noted : (a) That the request made by the Secretary-General would infringe upon the authority delegated by the General Assembly to the Commission under article 11 (b) of its statute to establish rates of allowances and benefits for the General Service category, including children's allowances ; (b) That the 1956 Salary Review Committee had interpreted the relevant provisions of the Staff Regulations as follows : "regard should be had to outside local practice on children's allowances, and to any tax reliefs granted under local tax law" ; 9/ neither the Secretary-General nor the United Nations Headquarters, Staff Committee had suggested that the children's allowance of 4400 a year payable to General Service staff in New York was less than the tax relief obtained under local tax laws ; (c) That the arguments adduced by the Secretary-General in support of his request introduced changes in the criteria which had hitherto governed the settling of allowances for General Service staff, namely comparison with best prevailing conditions ; to establish parity with the allowances of staff of the Professional category at a time when the latter were' under review by the Commission would result in an undesirable limitation of the Commission's freedom of action in the general review. 17. The Commission has responded to this request in its report on the review of the salary system (see para. 338 below), where it has stated that : "In keeping with the principle that remuneration of the General Service category should continue to be established by comparison with the best prevailing conditions at each-duty station, it follows that the allowances and other entitlements (which are part of the remuneration) should also continue to be established by comparison with local conditions in each duty station." Consequently, when the Commission recommends (or, upon request, determines) General Service salaries for New York, it will at the same time examine the appropriate rate of the children's allowance there. 8/ Ibid., Thirtieth Session, Annexes,, agenda item 104, document A/10450/Add-1, pare 6-9/ Ibid., Eleventh Session, Annexes, agenda item 51, document A/3209, para =7-

16 c 3. Day-carecentresforchildrenofstaffmembers 18. In connexion with a request by the Secretary-General for additional funds for assistance towards the establishment of a day-care centre for children of staff members in Geneva, the Fifth Committee approved a recommendation to the General Assembly that : "... it should invite the International Civil Service Commission, in the context of the study on salary allowances and working conditions, to examine the need for the provision of day-care facilities for children of the staff of the United Nations, taking into account the observations of the Advisory Committee on Administrative and Budgetary Questions in paragraph 14 of its report (A/10008/Add.28), 10/ and to make proposals thereon to the Assembly at its thirty-first session". 11/ 19. The Commission noted that the question was referred to it in general terms, going beyond the particular project in Geneva and extending to "the staff of the United Nations" (which, presumably, should be taken to mean the staff of all the organizations of the United Nations system, since it is to be assumed that any centre established would be open to staff of all organizations stationed in the same city). On the basis of the information available to it at its third session, the Commission was unable to take a definitive position on the question, pending receipt of information which the executive heads and staff might communicate to it to enable it to study the matter as part of an over-all policy, in particular the question whether the establishment of day-care centres could be considered within the review of the salary system. 20. At its fourth session the Commission had before it a document submitted bythe Staff Council of the United Nations Office at Geneva providing information about relevant resolutions adopted by various organs of the United Nations system and provisions for day-care centres for children existing in a number of Member States. It was given orally further information about the day-care centre established in Geneva. 21. The consensus of the Commission was that the question of the responsibility of the employer to provide or assist in providing day-care centres for the children of staff members was a matter of social policy and so of the conditions of service in general, but could not properly be said to be a part of the salary system. It had been referred to the Commission by the General Assembly in general terms ; but the Commission did not have either any information as to possible needs in duty stations other than Geneva, or any proposals from the organizations as to what the social policy in this respect should be, how it should be implemented and its possible budgetary and administrative implications. Pending the submission of such information and proposals, therefore, the Commission was unable to express any views on the general problem. It noted with sympathy the efforts made by the staff in Geneva to establish a day-care centre, the generous co-operation of the Swiss 10/ Ibid., Thirtieth Session, Supplement No. 8 A (A/10008/Add.1-28) iv Ibid., Thirtieth Session, Annexes, agenda item 96, document A/10500, para

17 a authorities and the support offered by the administrations of the United,Nations, the ILO and WHO. It considered however that the question of possible financial support from the budget of the United Nations (whether in the form of a capital grant to assist in the launching of the project or in some other form) was not within its competence ; having regard,, inter alia, to the precedent created by the granting of financial support to the United Nations International School, it did not believe that if such a proposal was again made by the Secretary-General its approval would prejudice any policy recommendations the Commission might later reach in this respect. F. Programme of work of the Commission 22. The Commission indicated in its first annual report to the General Assembly its intentions regarding its programme of work for 1977 and for the progressive assumption of its full statutory responsibilities, together with the corresponding budget estimates. 12/ Those plans and budget estimates were noted by the Assembly in its resolution 3418 A (XCX). 23. At its fourth session, having completed its immediate work on -its priority task of reviewing the United Nations salary system, the Commission took stock of its work programme for the remainder of 1976 and for It noted, first, that in its report on the review of the salary system it had reserved a number of points for further study. Two of those entail major studies. (a) The review of pension benefits as a part of the package of remuneration (to be made in collaboration with the United Nations Joint Staff Pension Board) (see pare. 238 below) ; (b) The review of conditions of service in the field (see pare. 327 below). The Commission therefore decided to establish at its fifth session (February- March 1977) the guidelines and modalities for the carrying out of these two studies, the conclusions of which would, if possible, be examined at the sixth session (July-August 1977) so that they could.b e presented to the General Assembly 1,Y at its thirty-second session. 25. The remaining points arising from the review of the salary system will as x8 as possible be considered at the sixth session on the basis of studies to be prepared by the secretariat of the Commission in consultation with the 12/ Ibid., ThirtiethSession,Supplement No. 30 (A/10030), pares

18 organizations and staff representatives or subsequently in relation with the Commission's work under articles 13 and 14 of its statute. 13/ 26. The Commission confirmed its previous intention to consider at its fifth session the action it should undertake under articles 14 and 1.5 of its statute on the basis of studies being prepared on the existing situation in the common system with respect to recruitment methods and standards ; the career concept in the United Nations system ; staff training ; staff evaluation methods ; and the development of common staff regulations. 27. The Commission recognized, however, that the major part of its efforts during 1977 would have to be devoted to the assumption of its responsibilities in connexion with the conditions of service of the General Service category, in particular to the establishment of the methods by which the principles for determining conditions of service should be applied (under article 11 (a) of the statute) and, subsequently, the establishment of the relevant facts for and the making of recommendations (or, if appropriate, determinations) as to salary scales in particular duty stations (under article 12, paras. 1 and 2). In its first annual report to the General Assembly the Commission had indicated its intentions in this respect, 14/ that is, that it would begin consideration of the problems of the General Service category once it had completed its priority task of reviewing the salary system, but did not expect to be in a position to undertake the establishing of facts for and making recommendations as to salary scales in particular duty stations until the second half of / Those questions (together with the references to them in part two of the present report) are as follows : (a) "Local (or national) professional" posts and other special categories not covered in the review (for example United Nations field service) (para. 108) ; (b) Possible changes in the number and periodicity of within-grade increments (para. 117) ; (c) Development of a methodology for computing "total compensation" (para. 131) ; (d) The practice of certain Member States of paying supplements to United Nations remuneration to certain of their nationals (para. 180) ; (e) The proposal of FICSA regarding the repatriation grant (para. 269) ; (f) Language incentives (para. 320) ; and in relation to articles 13 and 14 of the statute : (g) Policy regarding promotions from the General Service to the Professional category (article 14 (d)) (para. 106) ; (h) Inclusion in one category of posts which should properly be classified in the other (article 13) (para. 109) ; (i) Extension of the P-6 grade (idem) (para. 116) ; (j) Treatment in the classification and salary systems of certain specialist occupational, groups (for example medical doctors) (idem) (para. 148). 14/ Official Records of the General Assembly, Thirtieth Session, Supplement No. 30 (A/10030), para

19 E ni 28. However, at its fourth session, the Commission was seized of communications from the Directors-General of WHO and the ILO transmitting resolutions adopted by the World Health Assembly at its twenty-ninth session and by the Governing Body of the ILO at its two hundredth session, both of which conveyed to the Commission the view that it should assume its functions under article 12, paragraph 1, as soon as possible, particularly with respect to Geneva. 29. Having thus been seized of the problem, the Commission decided, in accordance with paragraph 4 of article 12, to assume its functions under article 12 in respect of headquarters duty stations from the close of its fourth session. It placed on the agenda of its fifth session (February-March 1977) consideration of the methodology, to be applied in establishing salaries of the General Service category ; decided upon plans for the studies to be made between the fourth and fifth sessions in preparation for this item ; and authorized the Chairman to engage in consultation with members with a view to identifying the issues to which the Commission should direct its attention and, if possible, suggesting alternative solutions for consideration by it, so as to be able to advance the date at which the Commission will be in a position to concern itself with the situation in particular duty stations. 30. On the basis of the information which it received at its third and fourth sessions concerning the survey of best prevailing rates conducted in Geneva in 1975 and the settlement reached there in 1976, resulting in increases in salaries of the General Service category ranging from 11 to 15 per cent, the Commission's preliminary impression was that the situation regarding General Service salaries in Geneva was such as to give rise t serious concern. Not having itself conducted a survey of best prevailing conditions there or examined in detail the survey as a result of which the increased salaries were agreed to, the Commission was not in a position to express any judgement regarding the absolute level of salaries ; it could not fail, however, to share the concern expressed by the World Health Assembly, 15/ both as to the need to review as soon as possible the guiding principles and methodology applied in, the determination of salaries and allowances of the General Service category and as to the budgetary implications of the recent increase. 16/ 15/ Resolution WHA adopted by the twenty-ninth World Health Assembly, second'and fourth preambular paragraphs. 16/ Minority, opinion : some members considered that the information the Commission had received raised serious prima facie doubts about the way in which General Service salaries had been established hitherto in Geneva and in particular about the methodology employed. In light of those doubts, they expressed the hope that, pending the time at which the Commission would exercise its responsibilities under article 12, paragraph 1, in respect of Geneva, any further changes in the level of General Service remuneration there would be kept to a minimum. Any action in that connexion remaining meanwhile the responsibility ofthe executive heads, they considered that that view should be made known to the Secretary-General, as Chairman of ACC, immediately after the close of the fourth session. -ll-

20 f To assist it in accelerating its effective assumption of its functions fn relation to the salaries of the General Service category, the Commission was of the opinion that the date of entry on duty of the additional staff provided in its approved budget for work in that area should be advanced. Of the two Professional and two General Service posts for which provision had been made from the second quarter of 1977, the Commission considered that one Professional and one General Service post should be manned if possible from 1 October and the others from 1 January It noted that the additional costs entailed could be met from savings realized on established posts in 1976 and without increase in the over-all marring table (one Professional post authorized throughout 1976 not having been filled). 32. The Commission's attention was drawn to a particular question concerning the recruitment of General Service staff at the headquarters of FAO, submitted to it at its fourth session by the FAO Union of General Service Staff under rule 6, paragraph 2 (g) of the rules of procedure (see ICSC/1). It decided to revert to that question in the context of its review of the conditions of service of the General Service category. -12-

21 Part Two REPORT OF THE INTERNATIONAL CIVIL SERVICE COMMISSION ON THE REVIEW OF THE UNITED NATIONS SALARY SYSTEM -13-

22 Y y

23 CHAPTER I INTRODUCTION Termsofreference 33. When the General Assembly, in resolution 3042 (XXVII) of 19 December 1972, *decided to establish in principle the International Civil Service Commission, it also decided to transmit to the Commission, once established, the report of the Special Committee for the Review of the United Nations Salary System, 17/ to together with related reports and comments, 18/ for its consideration and the submission of recommendations for action at the earliest possible date. Under the terms of resolution 3357 (XXIX) of 18 December 1974 by which it approved the statute of the Commission, the Assembly requested the Commission to review, as a matter of priority, the United Nations salary system in accordance with its earlier decision in paragraph 5 of resolution 3042 (XXVII), and to submit a progress report to the Assembly at its thirtieth session. The Special Committee 34. The Special Committee for the Review of the United Nations Salary System (referred to hereinafter as "the Special Committee") was the latest in a series of bodies which, since 1945, had. reviewed, in whole or in part, the United Nations salary system. / Established by the General Assembly by Official Records of the General Assembly, Twenty-seventh Session, Supplement No. 28 (A/8728,and Corr.1). 1$ Ibid., Supplement No. 28A, (A/8728/Add.1) ; A/8839 and Corr.l and Add.l ; A/8914 ; see also A/C.5/1466. Those bodies were : The Preparatory Commission of the United Nations (1945) ; The Advisory Group of Experts on Administrative, Personnel and Budgetary Questions (1946) ; The Committee of Experts on Salary, Allowance and Leave Systems (1949) ; The Committee of Experts on Salary Differentials, Cost of Living Adjustments and Dependency Allowances (1955) ; The Salary Review Committee (1956) ; The Special Committee for the Review of the United Nations Salary System ( ) ; The International Civil Service Advisory Board (ICSAB), which made reviews of base salaries and post adjustments of the Professional and higher categories (1961), salary scales of the Professional and higher categories (1965), the principle underlying the establishment of salaries for the international civil service ( ), salary scales for the Professional and higher categories and/the application of guiding principles to General Service salaries (1970) and salaries of the Professional and higher categories and staff allowances (1974)- -15-

24 resolution 2743 (XXV) of 17 December 1970 and composed of experts nominated by the Governments of 11 Member States, the Special Committee's terms of reference were to make "a thorough review of the long-term principles and criteria which should govern the whole United Nations common system of salaries, allowances, grants, superannuation and other benefits". Among specific matters referred to it were : the structure of categories and grades ; the base of the system ; the principles which should govern the establishment of the salary scales and other conditions of service for the various categories ; the level of salaries and allowances and the fringe benefits for the various grades. The Committee held two sessions in 1971 and 1972, totalling 217 meetings. Following an interim report submitted to the General Assembly in 1971, 20/ it presented its full report, in three volumes, in / That report covered practically all major aspects of the salary systems for both the Professional and higher categories and the General Service category and contained conclusions and recommendations on most of them..it was considered by the General Assembly, together with comments by the International Civil Service Advisory Board, 22/ by the Secretary-General as Chairman of the Administrative Committee on Co-ordination (ACC) (A/8839 and Corr.l and Add.1), by the Federation of International Civil Servants' Associations (FICSA) (A/C.5/1466) and by the Advisory Committee on Administrative and Budgetary Questions (A/8914). The Assembly, however, decided to take no action on the recommendations of the Special Committee regarding the salary system and to refer its report to the International Civil Service Commission. ay The time-schedule for the review 35. The task entrusted to the International Civil Service Commission was thus, in effect, to complete a review which - had been started in 1970 and which had been deemed necessary then because of serious anomalies which the General Assembly found in the existing salary system. In the meantime, significant changes had occurred in the world economic situation ; as the Commission stated in its first annual report to the General Assembly, "the / Special/ Committee's recommendations not having been acted upon by the General Assembly, many important questions for the effective working of the salary system had been left in abeyance and many of them had been aggravated in the meanwhile by the continuing world monetary instability and inflation". 23/ The Commission was therefore fully conscious from the outset of the necessity for it to reach conclusions as rapidly as possible ; and when it held its first session in May 1975, it immediately decided, in response to the General Assembly's request that it give priority to the review, to devote the major part of its resources to it during the first 18. months of its existence, even though this meant that it would not be able to assume straightaway most of the other important functions entrusted to it under its statute. The Commission's intention to complete the review in time for the results to be considered by the Assembly at its thirty-first session was endorsed 'by the Assembly when, in paragraphs 2 and 3 of resolution 3418 A (XXX), after 20/ Official Records of the General Assembly, Twenty-sixth Session, Supplement No. 28 (A/8428). 21/ Ibid., Twenty-seventh Session, Supplement No. 28 (A/8728 and Corr.l). 22/ Ibid., Supplement No. 28A (A/8728/Add.1). 23/ Ibid., Thirtieth Session, Supplement No. 30,(A/10030), para

25 taking note with appreciation of the Commission's first annual report, it invited the Commission to complete its work on the United Nations salary system in 1976 and to submit its final recommendations to the General Assembly at its thirty-first session and noted the Commission's consequential plans for the progressive assumption of its other statutory functions. The review in relation to the Commission's permanent functions 36. At the same time, while aiming to complete the review to the fullest extent possible and in the minimum time, the Commission has been conscious that, as a standing body established by the General Assembly and whose statute has been accepted by almost all of the other organizations participating in the common system of salaries, its status is essentially different from that of previous review bodies, which were either ad hoc bodies with a limited mandate and life-span. or, in the case of the International Civil Service Advisory Board, with limited terms of reference and possibilities of action. The statute of the Commission gives it continuing functions and responsibilities, some of which encompass matters dealt with in the review of the salary system, some of which go beyond that review. Thus, the review itself falls under article 10 of the statute (annexed to Assembly resolution 3357 (XXIX) ; see also ICSC/1), by which the Commission is required to make recommendations to the Assembly on (a) the broad principles for the determination of the conditions of service of the staff ; (b) the scales of salaries and post adjustments for staff in the Professional and higher categories ; (c) allowances- and benefits of staff which are determined by the Assembly ; and (d) staff assessment. Elsewhere in its statute, the Commission is given powers of determination in respect of certain matters falling within the scope of the review of the salary system ; for example, under article 11 it is required to establish the methods by which the principles for determining conditions of service should be applied, as well as allowances and benefits of staff other than those reserved to the Assembly under article 10. It is also given functions in respect of a wide range of other questions relevant to the conditions of employment and service of the staff under articles 12 to Consequently, in making this review-of the salary system, the Commission has also borne in mind its ongoing role. Thus, while it has endeavoured to make its review as complete as possible within the time available, it has been conscious that, unlike other review bodies, it has the possibility of reserving for later and fuller study, within its regular programme of work, certain aspects of the salary system which are less urgent or important. It has noted these in its report and will revert to them later, submitting recommendations to the General Assembly at future sessions as appropriate. 38. Similarly, in respect of matters for which the power of determination has been delegated to it by the General Assembly, it has confined itself in this report to indicating the general direction of. the action it intends to take, -- so that the Assembly need not devote its time to questions for the regulation of which it established the Commission. 39. It is also worth noting that the Commission's review has differed from that of most previous review bodies in the manner in which both the executive heads and the representatives of the staff have been enabled to present their views for consideration by the Commission. This is. in conformity with the provision in paragraph 2 of article 28 of the Commission's statute, that "'executive heads of -17-

26 the organizations and staff representatives shall have the right, collectively or separately, to present facts and views on any matter within the competence of the Commission" and with the arrangements to give effect to this right which the Commission embodied in its rules of procedure (see ICSC/1). At every stage of the review the Commission has given opportunities to the executive heads (through ACC and the Consultative Committee on Administrative Questions) and to the representatives of the staff (through FICSA) to present their views to it, in writing and orally ; and the Commission wishes to express its appreciation of the valuable co-operation it has received from them. 40. Needless to say, however, the conclusions finally reached by the Commission and its recommendations as contained in this report are its responsibility alone. Organization of the review 41. The Commission began the review at its first session (May 1975) by hearing, from the representatives of the organizations and the staff, their views on the objectives to be, sought and generally taking stock of the problem. At the outset of its second session (August 1975), it agreed on the strategy it would follow and then, in accordance with that plan, proceeded to general discussion, first, of the principles and, then, of some specific aspects of the salary system. It had before it, in addition to the report of the Special Committee and related documentation, 24/ an analysis by subjects of the Special Committee's findings, as well as those of all other previous salary review bodies. These are s ummarized. in the present report ; in considering each subject, the Commission has paid special attention to the relevant findings of the Special Committee, while noting that some of them had inevitably been affected by changed circumstances in the four years since they were prepared. 42. The work done by the Commission at its second session in taking stock of the salary system as a whole, examining some aspects which had been singled out in previous reports as giving rise to problems and hearing the views on them of the organizations and the staff, identifying points on which further studies were needed and dealing with two matters which were brought to its attention as requiring action in.advance of the completion of the over-all review, was reported to the General Assembly in the Commission's first annual report. 25 After considering that report the Assembly adopted resolutions 3418 A and B (XXX) 43. At its third session (March 1976) the Commission, in accordance with its plan, set out to discuss in depth all the major issues arising in the review with a view to arriving, if at all possible, at a consensus of principle on each of them. For that purpose, it had before it a list of 20 questions covering all those issues, as well as detailed views on them presented by ACC and FICSA, and other studies and supporting documentation prepared by its secretariat. On most of the questions it reached tentative conclusions which it specified were subject to review at its fourth session, when it would have before it a draft of its report to the Assembly ; it also called for further information and studies on some 24/ See foot-notes 17 and / Official Records of the General Assembly, Thirtieth Session, Supplement No. 30 (A/10030), chaps. V and VI. -18-