RECOMMENDED PAY INCREASE SHOULD BE REJECTED, FIFTH COMMITTEE TOLD

4 December 1995

Press Release
GA/AB/3052

RECOMMENDED PAY INCREASE SHOULD BE REJECTED, FIFTH COMMITTEE TOLD

19951204 Legal Counsel Says US Legally Bound To Pay 31 Per Cent of Cost of UNMIH and Other Missions

Member States should reject the recommendation that United Nations staff pay be raised because it was unjustified, poorly timed and potentially destructive to the institution, the Fifth Committee (Administrative and Budgetary) was told this morning as it continued discussing the common system and Joint Inspection Unit (JIU) reports.

The representative of the United States, making that call as he spoke on the common system, said that the raise was proposed at the worst possible time; the United Nations was in a financial crisis. It would cost more than $100 million yearly without a compensating increase in productivity.

"These are dollars that could be used to save lives, feed children, halt disease or help farmers to improve their crops. These are dollars that could be used to modernize and professionalize United Nations operations", he said.

At the beginning of the meeting, the United Nations Legal Counsel, Hans Corell, addressed the Committee on the apportionment of peace-keeping costs. He stated that the United States was legally bound to pay slightly above 31 per cent of the costs of the United Nations Mission in Haiti (UNMIH) and other missions, as determined by the General Assembly.

On the JIU, the representative of Japan said future reports should accord higher priority to streamlining, contracting, coordination of development cooperation policy frameworks, assessment of the restructuring of the economic and social sectors and evaluation of the United Nations Conference on Trade and Development (UNCTAD). A system-wide review of planning and budgetary procedures, the use of experts and consultants and of procurement policies and procedures should be considered soon.

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Commenting on the JIU report on the sharing of peace-keeping responsibilities between the United Nations and regional organizations, Azerbaijan's representative said that its authors had failed to reflect the fact that Nagorny Karabakh was an integral part of his country. That was a "political provocation with far-reaching goals". It was an effort to give blessing in a United Nations document to a separatist movement of the Armenians of the Nagorny Karabakh region of Azerbaijan, which was inspired by a neighbouring State. More than 20 per cent of Azerbaijan's territory was occupied as a result of the aggression by Armenia.

In response, JIU Chairman Fatih Bouayad-Agha said the Unit was not a political body. Faced with politically sensitive situations, inspectors used the terminology of a relevant regional organization. In the report in question, they had used that of the Organisation for Security and Cooperation in Europe (OSCE).

The representatives of Norway, Russian Federation, Tunisia, Uganda and Canada also spoke.

The Committee will meet again at 3 p.m. on Wednesday, 6 December, to conclude its general debate on the common system and consider the question of the normalization of the situation concerning South Africa.

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to continue discussing the United Nations common system, the Joint Inspection Unit (JIU) and to hear a statement by the United Nations Legal Counsel.

On the common system of salaries allowances and conditions of service, the Committee had before it the 1995 report of the International Civil Service Commission (ICSC) (document A/50/30) and a statement by the Secretary-General on the administrative and financial implications of the Commission's decisions and recommendations (document A/C.5/50/24 and Corr.1). Also before the Committee were statements by the Administrative and Coordination Committee (ACC) (documents A/C.5/50/11 and 29) and comments by the Coordinating Committee for International Staff Unions and Associations of the United Nations System (CCISUA) (document A/C.5/50/5) and by the Federation of International Civil Servants Associations (FICSA) (document A/C.5/50/24).

The 15-member Commission advises the Assembly on salary and compensation issues, including post adjustment and pension, for Professional and higher level staff as well as on General Service remuneration and conditions of service. Fourteen organizations, together with the United Nations, participate in the common system of salaries and allowances.

On remuneration of staff at Professional and higher categories, the ICSC asks the General Assembly to reaffirm the continued applicability of the Noblemaire principle. It also recommends that the 115 desirable mid-point of the United Nations/United States net remuneration margin should be restored in 1996. To make the margin 15 per cent higher than the United States federal civil service remuneration, it recommends an increase in the base/floor salary scale, equivalent to 3.1 per cent, effective 1 March 1996, and an increase in post adjustment indices by 5.1 per cent, as of 1 July 1996. (For background, see Press Release GA/AB/3043, of 20 November.)

(The Noblemaire principle provides that salaries of staff at the Professional and higher categories in the United Nations system shall be set by reference to the highest paid national civil service. For that, the United States federal civil service has been used as the comparator. The margin is the average percentage difference between the pay of United Nations staff in New York and that of the United States federal service. Base floor salary scale is a universally applicable scale for staff at the Professional and higher categories and reflects the minimum net sums received by United Nations staff around the world. The post adjustment index measures living conditions of staff in a given location compared with costs in New York at a specific date. Post adjustment is a supplement to base pay and is calculated as a percentage of net base pay.)

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Also before the Committee were the 1994 and 1995 JIU annual reports (documents A/49/34 and A/50/34) and reports on a range of issues. The reports include the following: the JIU 1995 work programme and its preliminary work programme for 1996 and beyond and an addendum to that work programme (document A/50/140 and Add.1), the Secretary-General's report on the implementation of the JIU recommendations (document A/49/632); and the JIU reports and comments by the ACC on national execution of projects (document A/50/113 and Add.1), on the United Nations system support for science and technology for development in Africa and in Asia and the Pacific (documents A/50/125 and Add.1 and A/50/721).

Other reports before the Committee dealt with the following issues: communication for development programmes in the United Nations system (document A/50/126, E/1995/20 and A/50/126/Add.1); sharing responsibilities in peace-keeping (document A/50/571); relationship between humanitarian assistance and peace-keeping operations (document A/50/572); relationship agreements between the United Nations and the specialized agencies focusing on strengthening of the common system of salaries, allowances and conditions of service (document E/1993/119 and Add.1); and the United Nations system common premises and services in the field (document A/49/629).

The Committee would also consider reports on accountability, management improvement and oversight in the United Nations system (document A/50/503 and Add.1); management in the United Nations: work in progress (document A/50/507); the advancement of women through and in the programmes of the United Nations system (document A/50/509); travel in the United Nations: issues of efficiency and cost savings (document A/50/692); management of buildings in the United Nations system and the Secretary-General's comments on that report (documents A/49/560 and A/50/753); efforts to restructure the regional dimension of United Nations economic and social activities (document A/49/423); and managing works of art in the United Nations (document A/50/742).

The Geneva-based Joint Inspection Unit (JIU) -- the only independent system-wide inspection, evaluation and investigation body -- consists of 11 inspectors with experience in international administrative and financial matters serving in their personal capacity for a term of five years. The Unit makes its recommendations to the Assembly on the basis of their investigations.

The ACC -- composed of the Secretary-General and the executive heads of the specialized agencies and the International Atomic Energy Agency (IAEA) -- ensures that the activities of the various bodies are fully coordinated and supervises the implementation of the agreements between the United Nations and the specialized agencies. It normally meets three times a year.

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(For information on the JIU reports and comments by the ACC, see Press Release GA/AB/3048 of 28 November.)

The Committee would also continue considering the report of the Secretary-General on the activities of the Office of Internal Oversight Services and the Secretary-General's note transmitting the comments of the JIU on that Office's report. (For background, see Press Release GA/AB/3045 of 21 November.)

Statement by United Nations Legal Counsel

HANS CORELL, Under-Secretary-General for Legal Affairs and United Nations Legal Counsel, reiterated the legal opinion he had expressed on 18 October during informal consultations on the United States' statement that it would not pay more than 25 per cent of the costs of the United Nations Mission in Haiti (UNMIH) and other peace-keeping operations. He said the matter was governed by Article 17 of the Charter, which provided that the expenses of the United Nations were to be borne by Member States as apportioned by the Assembly. Once the Assembly approved UNMIH's budget, Member States would be obliged to bear those expenses as apportioned. Currently, the Assembly had determined that the portion of expenses that the United States was to bear for missions such as UNMIH was slightly more than 31 per cent. The United States was legally obligated under Article 17 to pay at that rate, unless it was reduced by the Assembly.

Statements on JIU

The Committee Chairman, ERICH VILCHEZ ASHER (Nicaragua), referring to statements made by some delegations at informal consultations, said the JIU would be invited to the consultations when its budget estimates were discussed, as stipulated in the JIU statutes. The JIU Chairman had indicated that he would be available for clarification.

FUMIAKI TOYA (Japan) said the proposals to upgrade one post to the level of Principal Officer (D-1) and the addition of a new post at the First Officer level (P-4) should be clarified as they had not been included in the proposed 1996-1997 budget. They should be considered carefully in light of the current budgetary crisis. The Unit's recommendations on various subjects should be implemented. It should also pay greater attention to the views of executive heads of participating organizations, so as to better understand why they were reluctant to respond to some of the Unit's recommendations.

He expressed support for the JIU's plan to continue treating as a priority such areas as management, budgetary and administrative issues, operational activities for development and peace-keeping operations and humanitarian assistance. Reports on streamlining, contracting, coordination of development cooperation policy frameworks, assessment of the restructuring

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of the economic, social and related sectors, and the evaluation of the United Nations Conference on Trade and Development (UNCTAD) should be accorded higher priority. a system-wide review of planning, programming and budgetary procedures, the use of experts and consultants, and review of procurement policies and procedures should be considered at an early date. The Fifth committee and the Advisory Committee on Administrative and Budgetary Questions (ACABQ) should devote more time and effort to consider the reports of the JIU.

TRYGGVE GJESDAL (Norway) said the JIU should be more realistic about resource constraints; ensure the relevance and user-friendliness of reports; and improve its practical collaboration with other actors. Hence, it was necessary to share information on work programmes among oversight bodies, to compare findings and recommendations, and avoid overlapping reports. He expressed support for the Unit's efforts to strengthen cooperation with the Office of Internal Oversight Services. There should be the highest possible degree of cooperation between all the internal and external oversight bodies in the United Nations system. The Unit should encourage the development of internal oversight functions which would lead to significant cost savings and cost-benefit gains. The 1993 report on cost savings obtained through its recommendations should be updated.

The time had come for more effective follow-up of recommendations of all United Nations oversight bodies, he said. The quality and potential impact of the JIU recommendations depended on their practicability. The effectiveness of the Unit's work depended on the Assembly electing suitable Inspectors. Deferring of the maintenance programmes for United Nations buildings would not be cost effective in the long run; preventive maintenance and timely repairs should be carried out.

He said he endorsed the view of the Unit that the Fifth Committee was just as "accountable for accountability" as was the Secretariat. The Committee should set an example for the remainder of the Organization; it should review its working methods and consider the various recommendations to improve its functioning.

EVGUENI N. DEINEKO (Russian Federation) said there should be a mechanism for reliable monitoring in order to ensure the success of the work of the JIU. The functions and roles of the control mechanisms should be strengthened. The JIU should coordinate its work with those of the Office of Internal Oversight Services and the Board of Auditors. At the same time, efforts should be made to avoid overlap in their duties. He drew attention to peace-keeping operations as an area where efforts should be made to reduce fraud and other wastes. The Unit had not exhausted its potential in that area and could help improve the use of missions' resources.

The reports on some of the issues such as the sharing of responsibility between the United Nations and regional organizations contained concrete

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recommendations, he continued. Enhancing the effectiveness of reforms was a key to increasing the yield of the activities of the United Nations system. The Assembly, through its Fifth Committee, should play a role in guiding the JIU. As a control organ, the Unit could strenghthen dialogue with the excutive heads so as to improve coordination and eliminate duplication.

ALFRED DECOTIIS (United States), focusing on the Unit's annual report and work programmes, said he would address the other JIU reports under the relevant agenda items. In general, Member States gave scant attention to JIU reports. In order to focus the attention of Member States and programme managers on the reports, the Office of Internal Oversight Services must track compliance with approved JIU recommendations. Commending the JIU for its coordination with the Board of Auditors and the Office, he said the work of all oversight bodies should be complementary. To achieve that objective, they should develop a mechanism for joint planning.

He urged the JIU to focus its activities on system-wide issues where it had a comparative advantage in analysis and reporting. The Unit should pursue such studies as printing arrangements and sub-contracting, and cooperation between the Global Environment Facility implementing agencies and the specialized agencies of the United Nations system. Studies oriented strictly to the United Nations itself should be de-emphasized. The JIU should carry out studies which would support the reform process. The report on "Management in the United Nations system: work in progress" was a valuable contribution to that effort. Every report on programmes or activities should address the question of reform. The JIU should provide information so that Member States could determine whether programmes and activities were producing value for money expended.

ELDAR KOULIEV (Azerbaijan), commending the Unit for responding to the Assembly's requests, said it should comply strictly with its functions, mandate and obligations as defined in its statutes. At least one of the JIU reports -- division of responsibility in peace-keeping: United Nations and regional organizations -- did not meet the criteria as stated in its statutes. That report should have presented realistic recommendations, as the question was a very pressing one, demanding quick solutions. Unfortunately, it lacked any serious reflections on that point; the executive summary did not contain anything original; and some recommendations on financing and the revolving fund could not be considered as realistic and pragmatic.

Referring to specific paragraphs in the report, he said the authors had failed to reflect the fact that Nagorny Karabakh was an integral part of the Azerbaijan Republic. That had been stated in spite of Assembly resolution 49/13 and a recent report of the Secretary-General which confirmed the status of Nagorny Karabakh was an integral part of Azerbaijan. The JIU inspectors had refused to correct the document.

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What was stated in the report was a political act and an infringement of the sovereignty of Azerbaijan, he continued. As a United Nations body, it was strange that the JIU should ignore the Organization's official documents on the issue. The contents of the report on this matter was a "political provocation with far-reaching goals". It was an effort to give blessing in a United Nations document to a separatist movement of the Armenians of the Nagorny Karabakh region of the Azerbaijani Republic, which was inspired by a neighbouring State. More than 20 per cent of the country's territory was occupied as a result of the aggression of the Republic of Armenia.

Mr. VILCHEZ ASHER (Nicaragua), Fifth Committee Chairman, said the issue raised by the representative of Azerbaijan was beyond the Committee's competence.

FATIH BOUAYAD-AGHA, JIU Chairman, said the report referred to by the representative of Azerbaijan should be placed in the context of the study of regional organizations. It had discussed conflicts relevant to regional bodies. The JIU was not a political body. When inspectors were faced with a politically sensitive situation, they used the terminology of the relevant regional organization. In the report in question, they had used the terminology of the Organization for Security and Cooperation in Europe (OSCE). He quoted a recent report of the Secretary-General on Nagorny Karabakh stating that the conflict in that region remained unresolved and that the situation on the ground had not changed.

Mr. KOULIEV (Azerbaijan) said that the document quoted by the JIU Chairman had since been corrected.

Statements on Common System

TOBY ROTH (United States), a member of the House of Representatives, said he understood that, under the application of the Noblemaire principle, United Nations compensation should exceed the highest paid national civil service by 10 to 20 per cent in order to attract and keep high-quality staff from all Member States, including the highest-paid national civil service. According to the ICSC, the margin -- the difference between United Nations salaries and those of the United States federal civil servants -- currently stood at 105.7, warranting a pay raise of 9.2 per cent to take the margin to the mid-point of 115. The finding had been based on a most inappropriate methodology, which had created distortions. The methodology had played a major role in the recommendation for pay increases.

He said that there was no evidence to show that the proposed pay increase was required to recruit and keep staff. Qualified candidates for professional positions were abundant. If the need arose, agencies should pursue the use of special occupational rates that had been endorsed by the General Assembly to address serious recruitment problems.

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Moreover, he added, the proposed pay increases came at the worst possible time as the United Nations was in a financial crisis. The increase would cost more than $100 million a year without a compensating increase in productivity. "These are dollars that could be used to save lives, feed children, halt disease or help farmers to improve their crops. These are dollars that could be used to modernize and professionalize United Nations operations. These are dollars that are generated, not by governments, but by taxpayers, in my country and in yours. And I can tell you that I would have a very hard time going back to the hardworking people I represent in Wisconsin to tell them that their tax dollars were being used to increase the compensation of United Nations staff who already make more money than comparable employees in any civil service in the world."

He added that governments were cutting budgets and staff, freezing salaries and eliminating low priority programmes; the United Nations could not ignore those trends. The pay raise at this time would knock the legs out of efforts to improve management and would not help make the United Nations more productive. It would also have a devastating impact on public support for the Organization. "We understand the need for adequate compensation to attract high quality individuals. But we find the recommendation for a pay raise at this time to be unjustified, poorly timed and potentially destructive to the institution." It should be rejected.

VLADIMIR V. KUZNETSOV (Russian Federation) said his Government had reserved the right to take the floor regarding some aspects of the statements made by a representative of the United Nations staff unions. The Russian Federation had advocated fruitful consultations between parties on the issues before the ICSC. He regretted that FICSA and the CCISUA had not shown a positive attitude; that could not lead to common dialogue over the problems that were significant both to staff and Member States. The tone of one of the statements made by one of the staff unions contained some impolite remarks regarding the technical body, the ICSC. There should be an approach that was respectful and dignified towards colleagues.

AMMAR AMARI (Tunisia) expressed support for the statement by the Russian Federation. He was saddened by the unresponsiveness of the unions and disagreed with the language used against some representatives.

NESTER ODAGA-JALOMAYO (Uganda), expressing support for the representatives of the Russian Federation and Tunisia, said it had noted that the staff representatives had taken advantage of the privileges they were granted to address the Fifth Committee, as shown by the tone of a recent presentation. He asked whether such an approach would add anything of value to the proceedings. The Committee might have to review its practice of allowing such presentations unless changes occurred. The unions had before them the option of embracing the path of constructive dialogue on the matters that concerned them.

SAM HANSON (Canada) expressed support for the views expressed. It was not productive for the Committee to serve as a forum in which recriminations were launched or exchanged. The associations should bear in mind that a confrontational approach would not be productive, as the Fifth Committee operated by consensus.

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