Speakers Back Proposal to Harmonize Annual Leave, Raise Concern over Post Adjustment Multipliers in Geneva, as Fifth Committee Reviews United Nations Common System
The Fifth Committee (Administrative and Budgetary) today sent the General Assembly a draft decision on the United Nations common system as delegates considered the International Civil Service Commission’s (ICSC) proposals for the coming year and stressed the need for a cohesive system to manage a diverse global staff.
Larbi Djacta, Chairperson of the ICSC, introduced the 2022 annual report for the independent body, which regulates service conditions and pay scales for thousands of staff at the Secretariat as well as agencies, funds and programmes around the world: the common system.
Japan’s delegate emphasized that the common system must remain fair and sustainable through ongoing review and must reflect economic changes, including the cost of living, to maintain employees’ confidence. The ICSC’s recommended revisions to base salaries and allowances would require significant resources, he noted, stressing that in examining the justifications behind these proposals, it is important to consider that efficient resources are crucial to maintain highly motivated staff. The continued application of two divergent post adjustment multipliers in Geneva jeopardizes the system’s consistency and stability, he warned, and should be addressed by the Assembly.
On that point, the representative of China urged the Fifth Committee to “play our part” and adopt viable means as quickly as possible to address the immense financial, legal and administrative challenges from the concurrent application of divergent multipliers. Moreover, when deciding on raising staff entitlements, several factors - including the appropriate comparators, Member States’ social and economic development levels and capacity to pay, and the incentive function of adjustments – must be considered holistically. By adjusting standards incrementally, Member States are able to meet their financial obligations while also boosting staff morale, she said.
Representatives of United Nations staff unions — including the Federation of International Civil Servants’ Associations; the United Nations International Civil Servants Federation; and the Coordinating Committee for International Staff Unions and Associations - welcomed the proposed move to harmonize the accrual of annual leave days between temporary and continuing and fixed-term contracts based on the principle of equal salary for work of equal value, while also welcoming the ICSC recommendations on gender parity in parental leave and the revision of the children and secondary dependents allowances.
Yacine Hamzaoui, Chief of the Conferences, Security, Construction and Common Support Services Service, of the Programme Planning and Budget Division of the Department of Management Strategy, Policy and Compliance’s Office of Programme Planning, Finance and Budget, presented the Secretary-General’s statement that laid out the budgetary implications arising from the ICSC recommendations for the 2023 programme budget, noting they are estimated at $4.07 million. Patrick Chuasoto, Vice-Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced its eponymous report.
Also today, delegates weighed in with their concerns after Secretariat officials laid out their annual updates on ongoing management and construction projects at United Nations facilities in Bangkok, Nairobi and Geneva.
Regarding the $40.2 million construction project to make the Organization’s regional commission in Bangkok a safer place in 2023, Pakistan’s representative, speaking on behalf of the “Group of 77” developing countries and China, stressed the importance of a successful, timely completion of the seismic mitigation retrofit and life-cycle replacement project at the Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok. He said the use of local materials and construction techniques has helped reduce costs and better manage the risk of global supply chain disruptions stemming from the pandemic.
Speaking for the Association of Southeast Asian Nations (ASEAN), Singapore’s representative noted ESCAP’s economic and social development-related technical assistance and capacity-building to the Asia-Pacific region and said its premises must be made safe, suitable and accessible to ensure its timely work. Echoing the comments of Pakistan’s delegate, she reiterated that special attention should be paid to using local knowledge, materials, technology and in-house capacity while also commending ESCAP’s environmental management strategies, which achieved a projected reduction of 27 per cent in annual energy consumption, greater than its 16 to 18 per cent target.
Turning attention to the replacement of office blocks at the United Nations Office in Nairobi, Uganda’s representative, speaking for the African Group, noted the project’s second phase is on track for completion by year’s end, which is a major milestone. Aligning himself with the Group of 77, he expected the timely completion of the remaining two components and encouraged the Secretary-General to continue engaging with the host country, Kenya. He also backed the implementation of other United Nations capital projects, such as for the Economic Commission for Latin America and the Caribbean (ECLAC) and Economic Commission for Africa (ECA).
Regarding the Strategic Heritage Plan for the United Nations Office at Geneva, Switzerland’s representative said it will increase productivity, well-being and efficiency for staff, delegates and visitors as it upgrades infrastructure and improves accessibility for people with disabilities. As the host country, Switzerland remains committed to supporting the project and has provided an interest free loan of CHF 400 million. Welcoming the proposal for a valorisation strategy, she stressed the importance of considering both the potential income from utilization and the costs of underutilization, emphasizing that the Fifth Committee must not lose time starting the necessary analytical and preparatory work in order to make an informed decision which unlocks valorisation’s financial potential.
Yacine Hamzaoui, speaking on behalf of Chandramouli Ramanathan, Assistant Secretary-General for Programme Planning, Finance and Budget and United Nations Controller, introduced the Secretary-General’s reports on the three projects. Mr. Chuasoto introduced ACABQ’s related reports.
Valentina Monasterio Gálvez, Director of External Audit (Chile) and Chair of the Audit Operations Committee of the Board of Auditors, introduced the Secretary‑General’s note which transmitted the Board’s fourth report on the Strategic Heritage Plan.
In other business, the Fifth Committee sent the Assembly the name of Dorothy Ann Bradley (Belize), from the Group of Latin American and Caribbean States, to fill a vacancy in the Independent Audit Advisory Committee – a five-member expert body that helps the Assembly fulfil its oversight responsibilities - for a three-year term starting 1 January 2023.
The representatives of Thailand, Russian Federation, United States and Cuba also spoke.
The Fifth Committee will reconvene at 10 a.m. on Thursday, 17 November, to discuss the financial reports and reports of the Board of Auditors.
Construction and Property Management
YACINE HAMZAOUI, Chief, Conferences, Security, Construction and Common Support Services Service, of the Office of Programme Planning, Finance and Budget in the Department of Management Strategy, Policy and Compliance, speaking on behalf of Chandramouli Ramanathan, Assistant Secretary-General for Programme Planning, Finance and Budget and United Nations Controller, introduced the Secretary-General’s report titled “Seismic mitigation retrofit and life-cycle replacements project at the Economic and Social Commission for Asia (ESCAP) and the Pacific premises in Bangkok” (document A/77/330). The report provides an update on the project’s progress and outlines the activities undertaken, particularly regarding the awarding of the contract for the main construction works; change management and business readiness; the completion of the staff’s move to swing space facilities; and the start of the main construction works. Despite previous setbacks, ESCAP has successfully finished the tendering of all key contracts and started construction works at the end of 2021, which are progressing well, he said. The project is expected to be completed by the end of next year, as originally scheduled, and within the overall approved maximum budget of $40 million. Section VIII (paragraph 95) details recommended actions for the Assembly.
He then introduced the Secretary-General’s fifth progress report on the replacement of office blocks A-J at the Office in Nairobi (documents A/77/349 and Corr.1). The report provides information on progress in the early works component including the completion of the annex building and of the first phase of the refurbishing of the publishing services building; flexible workplace strategies across all remaining offices to improve current space utilization; and the construction of new buildings – currently in their design phase - to replace the depreciated office blocks. The report also provides an updated implementation schedule with construction still expected to end in 2024 and project close-out activities continuing until the end of 2025. The likelihood of project delivery within the approved maximum project cost of $66.2 million is 66 per cent, a 19 per cent increase when compared with the previous year’s confidence level, he said. Section VIII (paragraph 84) sets out the recommended actions for the Assembly.
He went on to introduce the Secretary-General's ninth annual progress report on the Strategic Heritage Plan of the Office at Geneva for the period from 1 September 2021 to 31 August 2022 (document A/77/492). Despite challenges resulting from the COVID‑19 pandemic, geopolitical instability and global economic uncertainty, significant progress has been made on construction and renovation. The complex and intensive procurement process for the renovation works of building E was successfully concluded within the allocated budget and the construction of building H was completed on 4 October 2021, he spotlighted. The report indicates a planned completion by December 2024. There is also an improved overall forecasted financial position by approximately CHF 38.5 million as compared with the previous report. This represents a confidence level of 53 per cent, an increase when compared to 16 per cent for the previous year, he added.
Turning to the contractor’s recent submission of a revised estimated work schedule following the report’s issuance, he said the six-month delay was mainly due to supply chain disruptions, local labour shortages and the recent identification of additional variation requirements and related change management processes. While this delay would impact the overall project schedule, there should be no need to propose reductions to the project’s scope to remain within the approved budget, he anticipated. Section X (paragraph 117) contains recommended actions for the Assembly.
VALENTINA MONASTERIO GÁLVEZ, Director of External Audit (Chile) and Chair of the Audit Operations Committee, Board of Auditors, introduced the Secretary‑General’s note (document A/77/94) transmitting the Board’s fourth report on the Strategic Heritage Plan of the United Nations Office at Geneva. She said the construction of the new building to address safety, health and working conditions was completed in October 2021 and is now in use, and that renovation work on the Palais des Nations was underway during the Board’s last visit in February 2022. The possibility of fulfilling the Plan within the available budget stood at 20 per cent in December 2021, but this may not be sustainable, she warned, as further improvements are needed to achieve substantial completion of all works, except for minor omissions and defects which are on a punch list. Management should ensure that that list be completed as soon as possible, she stressed.
Turning to the United Nations Disability Accessibility Strategy which entered into force in June 2014, she said a subsequent assessment of the building’s compliance with international standards, especially ISO 21542 “Building construction ‑ Accessibility and usability of the built environment”, revealed that some issues need to be addressed. The Board also reviewed the Benefit Management Approach, she said, stressing that to ensure more efficient building maintenance, management must track maintenance costs resulting from the Plan, starting with the new building and continuing with each building after its completion. Citing the value of building information modelling to fully transfer data and thus avoid additional costs resulting from having to later enter data into the facility management system, she said management should start the data import tests as soon as possible.
Regarding construction projects, she said that in the January 2022, the monthly reports on the status of renovating the historic building showed a total of 797 requests for information and 27 design variations, both approved and in progress. Management should improve its oversight of the work of the design services firm and its quality control procedures, she said. The Board noted that the procurement process for works on building E had started significantly later than scheduled in 2020, and there is a risk of further delays. Management should monitor whether the internal human resources and communication processes for the further procurement and the pre‑construction, early works and renovation contract processes for the office tower dismantling and the renovation works on building E are sufficient and timely enough to avoid further delays, she stressed. Of the 43 recommendations in the Board’s previous report on the Plan, 39 have been implemented and four were under implementation. The Board’s current report includes 22 recommendations.
PATRICK CHUASOTO, Vice-Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced its related report on the seismic mitigation retrofit and life‑cycle replacements project at ESCAP (document A/77/7/Add.12). While acknowledging the increased level of confidence in the project being completed within the approved budget, he noted the confidence level remains low even as the project moves toward completion. ACABQ recommends the continuous monitoring of project risks to ensure the project is delivered within the scope, budget and timeline approved by the General Assembly and that active management of owner‑directed changes continue. Any additional project costs resulting from late‑stage changes initiated by tenants, which may produce potential claims, should be borne by the respective tenant, not by ESCAP, he stressed. He also reiterated ACABQ’s recommendation that the Assembly ask the Secretary‑General to report on the formalized modalities, including financial reporting, with respect to late‑stage changes made by tenants in the next progress reports. The Assembly should appropriate $10.9 million for 2023, comprising $556,500 under section 19, Economic and Social Commission for Asia and the Pacific; and $10.35 million under section 33, Construction, alteration, improvement and major maintenance, of the proposed programme budget for 2023, which would be charged against the contingency fund.
He then introduced ACABQ’s related report on progress on the replacement of office blocks A‑J at the United Nations Office at Nairobi (document A/77/7/Add.14), noting that the three components of the A‑J project are considered on‑track for completion by the end of 2024. Regarding the early works component and the completion of the annex building on 31 August 2022, ACABQ notes that the second refurbishment phase of the early works component is scheduled for completion on 31 December 2022 and trusts that updated information regarding the impact of the three‑month delay, including on resources, will be provided to the Assembly. Turning to risk management and noting the 66 per cent improved level of confidence, compared with 47 per cent in the previous year, he said ACABQ notes the risk of owner‑directed changes and trusts the Secretary‑General will closely monitor and mitigate project risks to ensure the project’s delivery within the scope, budget and timeline approved by the Assembly. ACABQ recommends that the Assembly appropriate $13.19 million, comprising $1.21 million under section 29G, United Nations Office at Nairobi; $11.75 million under section 33, Construction, alteration, improvement and major maintenance; and $233,300 under section 34, Safety and security, of the proposed programme budget for the year 2023, which would represent a charge against the contingency fund.
Next, he introduced ACABQ’s related report on the ninth annual progress report on the strategic heritage plan of the United Nations Office at Geneva” (document A/77/7/Add.13). Noting the Board of Auditors’ recommendations, including on accessibility and execution of variations, he said the Advisory Committee trusts they will be implemented fully and expeditiously and an update will be provided in the next progress report. While noting the progress made, he also noted the one‑month delay in the schedule as well as the possibility that the project may not meet the full approved baseline scope within the approved budget. He reiterated ACABQ’s recommendation that the Assembly ask the Secretary‑General to closely monitor and mitigate project risks and ensure the delivery of the project within the approved scope, budget and timeline. While noting the Controller indicated there will be no need to propose reductions to the project’s approved scope, the Secretary-General may, if necessary, propose scope reductions in future reports for consideration in order to mitigate the risk of cost overruns.
Turning to sustainability and reduction of energy consumption, he noted the revised objective in reducing energy consumption of 11.5 per cent, compared with the initial target of 25 per cent. He encouraged the Secretary-General to continue efforts to ensure lower energy consumption in view of potentially rising energy costs. Regarding the estimated requirements for the valorization consultancy work, the Advisory Committee is not fully convinced that the proposed increased requirements of $75,000 for 2023 are justified, he said. It recommends that the Assembly approve $55,800 for 2023, with the corresponding reduction in total income estimates projected under Income Section 2.
JIBRAN KHAN DURRANI (Pakistan), speaking on behalf of the Group of 77 developing countries and China, stressed the importance of a successful, timely completion of the seismic mitigation retrofit and life-cycle replacement project at ESCAP. The use of local materials and construction techniques has been advantageous for cost efficiency and better managing the risk of global supply chain disruptions due to the pandemic. On planning and design activities, he welcomed regular consultations between ESCAP and stakeholders to gather feedback on the operational requirements and underscored the importance of effective project governance, oversight, cost effectiveness, transparency and accountability to ensure the project is implemented within the approved budget and timetable. Encouraging the project management team to continue its close engagement with the Global Asset Management Policy Service, he hoped that the relevant risk mitigating measures would be adopted in a timely manner and that the recommendations of the Office of Internal Oversight Services (OIOS) would be fully implemented.
Turning to progress in the replacement of office blocks A–J at the United Nations Office at Nairobi, he noted with satisfaction that the three components of the project are on track for completion by the end of 2024, with project close-out activities on schedule for completion by year-end 2025. However, the Group is concerned about the delays in the flexible workplace strategies and the new building components, and encourages the Secretary-General to make efforts to mitigate the delays associated with the procurement process and the construction planning phase, he said. Stressing the importance of effective oversight and coordination in managing the project, he welcomed the work in that regard of the Global Asset Management Policy Service at Headquarters, including the constant consultations with the project management team and regular field visits to the project site. He noted with appreciation the outcome of the quantitative project risk assessment in June 2022, which shows a steady increase in the confidence levels in delivering the project within the estimated project cost of $66.26 million; from a confidence level of 27 per cent in 2019 to 47 per cent in 2021 and to the current level of 66 per cent.
On the Geneva Strategic Heritage Plan, he noted the progress in key project activities and that due to value engineering and the outcome of the building E contract procurement process, the project’s overall forecasted financial position has improved and will exceed the project budget by less than 1 per cent. He also noted the confidence level of completing the Plan within the approved budget has increased to 53 per cent versus 16 per cent in 2021. However, the Group is concerned by the lack of decision on the scheme of appropriation, considering the project’s size and complexity, and reiterates support for the Secretary-General’s recommendation that the scheme be a one-time upfront appropriation, with a mix of onetime and multi-year assessments. Noting the 23 Board of Auditors’ recommendation for 2021 under implementation, he said all pertinent and approved Board recommendations must be implemented expeditiously to help business transformation. While appreciating the merits of the valorization strategy, he said the income from it is not related to the nature of a construction project. Moreover, the overall amounts now realistically achievable for the valorization strategy are likely to be lowered in the short to medium term, with the withdrawal of the lease proposal for the Feuillantines site, he pointed out.
Ms. HO (Singapore), speaking on behalf of the Association of Southeast Asian Nations (ASEAN), said ESCAP has provided economic and social development-related technical assistance and capacity-building to the 53 Member States and nine associate countries of the Asia-Pacific region. To ensure the Commission’s timely work, its premises must be made safe, suitable and accessible, she said, stressing the importance of good governance, effective oversight, transparency and accountability to guarantee the project’s timely completion within budget. She welcomed the fact that the OIOS report shows that extensive value engineering produced significant savings of $10.9 million in reduced contract prices, without compromising scope or quality. In addition, the use of on-site swing space defrayed costs and let ESCAP staff use agile and innovative ways of working.
She also commended ESCAP’s environmental management strategies, which achieved a projected reduction of 27 per cent in annual energy consumption, greater than its 16 to 18 per cent target. She reiterated that special attention should be paid to using local knowledge, materials, technology and in-house capacity and welcomed the Commission’s efforts to work with the host country. She also welcomed the Secretary-General’s assurance that the work is progressing well, with construction still estimated to be completed in 2023, within the overall approved maximum cost.
MEDARD AINOMUHISHA (Uganda), speaking on behalf of the African Group and aligning himself with the Group of 77 and China, encouraged the Secretary-General to continue his engagement with the host country, Kenya. In welcoming the Secretary-General’s progress report, he noted that the second phase is on track for completion by the end of the year. This is a major milestone representing the successful completion of the entire early works component, he said while expressing his expectation for the timely completion of the remaining two components. Turning to project management, he noted the recruitment processes underway for two incumbents who had left and requested information on the status of the processes as well as the other vacant posts.
Regarding risk management, he reiterated the call for the Secretary-General to continue to adopt risk mitigation measures to ensure that costs and timelines are not unduly impacted. Effective governance, oversight and accountability mechanisms are crucial, he underscored while emphasizing the importance to continue using locally sourced and manufactured materials and local labour and expertise. He then voiced his support for the implementation of other United Nations capital projects including for Economic Commission for Latin America and the Caribbean (ECLAC), ESCAP, Economic Commission for Africa (ECA) and the United Nations Office at Geneva.
Ms. KIATBUMRUNG (Thailand), associating herself with the Group of 77 and China and ASEAN, commended ESCAP for supporting Member States in the Asia‑Pacific region to accelerate the implementation of the 2030 Agenda for Sustainable Development and prepare for the 2023 High‑level Political Forum on Sustainable Development. She then reaffirmed her country’s support as ESCAP’s host country and advocated for a safe, suitable and environmentally friendly workplace for its secretariat. As such, she stressed the importance of project governance, oversight, cost‑effectiveness, transparency and accountability for the seismic mitigation and life‑cycle replacements project. The project team should continue to address risk management, engage the Global Asset Management Policy Service and ensure the full implementation of OIOS recommendations, she encouraged. ESCAP should continue its active outreach to vendors and intensify the use of local knowledge, expertise and supplies for the remainder of the project. For its part, the Fifth Committee should allocate adequate resources to the project, she urged.
RICCARDA CHRISTIANA CHANDA (Switzerland) said investment in the Strategic Heritage Plan will increase productivity, well‑being and efficiency of staff, delegates and visitors in Geneva by upgrading the infrastructure and improving accessibility for people with disabilities. She commended the project management team for its continuous efforts to identify measures which minimize potential and additional costs, optimize schedules and implement the recommendations of the Board of Auditors. Welcoming the proposal for a valorisation strategy, she stressed the importance to account for both the potential income from utilization and the costs of under‑utilization. For the Fifth Committee to make an informed decision which unlocks the financial potential of valorisation, there must be no time lost in starting the necessary analytical and preparatory work, she emphasized. As host country, Switzerland remains committed to supporting the project, she noted while spotlighting its interest‑free loan totalling CHF 400 million.
Independent Audit Advisory Committee
The Fifth Committee sent the Assembly the name of Dorothy Ann Bradley (Belize), from the Group of Latin American and Caribbean States, to fill a vacancy in the Independent Audit Advisory Committee – a five-member expert body that helps the Assembly fulfil its oversight responsibilities - for a three-year term starting 1 January 2023.
United Nations Common System
The Fifth Committee then took up and adopted the draft decision “United Nations common system” (document A/C.5/77/L.5) without a vote.
LARBI DJACTA, Chairperson of the International Civil Service Commission (ICSC), introduced the body’s annual report for 2022 (document A/77/30). He said the Commission recommends a 2.28 per cent increase in the United Nations base/floor salary scale, effective 1 January 2023, based on the comparator’s salary movement. As is the usual practice, the increase in the base/floor salary scale would be implemented with no‑loss/no‑gain in net take‑home pay. The Commission also examined the staff assessment rates used in conjunction with gross salaries and recommended no change in current rates. The report, he noted, also contains the ICSC’s response to the Assembly’s request on the impact of the base/floor salary scale adjustment on the expenditures on post resources for 2022. Such an adjustment only has financial implications on the net remuneration at duty stations where the post adjustment is too low to absorb the base/floor salary increase and on separation payments, both of which are routinely reported to the Assembly. Based on the available data, he announced that the net remuneration margin for 2022 amounts to 113.9. On the framework for contractual arrangements, the Commission recommended the Assembly harmonize the provisions for annual leave for temporary appointments at 2.5 days of leave per month.
Turning to dependency allowances, he said the Commission agreed on a revised methodology to create a more stable updating mechanism based on credible and pragmatic parameters. Under the new approach, the child allowance would be set at a flat rate equivalent to 4 per cent of the base salary at the P4/VI level for all staff and would be reviewed periodically. This percentage, he pointed out, was the level of the child allowance when the Assembly last approved it. The new approach would address many of the previous methodology’s concerns, including the dominance of one duty station in determining allowance levels, he emphasized before expressing his hope the Assembly can provide a long overdue update. On parental leave, the Commission reviewed the proposals of its working group and decided to replace the current provisions with a parental leave provision of 16 weeks for all parents. The Commission, he continued, also decided to provide an additional period of 10 weeks to birth mothers to meet their specific pre- and post-natal needs.
Noting that 2021 baseline cost‑of‑living surveys conducted at headquarters duty stations and Washington, D.C., were successfully completed in November 2021, he said the ICSC decided to endorse the recommendations of the Advisory Committee on Post Adjustment Questions. The results of the surveys were implemented in August 2022. ICSC is rolling‑out the 2021 round of surveys to all other duty stations, starting with group I duty stations, and will commence surveys in field duty stations in September 2023. The results of these surveys will be implemented on the basis of the newly modified system of operational rules to ensure higher transparency, stability and predictability in the adjustment of net renumeration, he stressed. Regarding the review of air travel accommodation, the Commission decided to invite common system organizations to harmonize their standards to the extent practicable. It also invited them to conduct a pilot application in 2023 of the revised criteria which calls for premium economy class for travel over 6 hours and business class for over 9.5 hours, inclusive of layovers. The Commission, he said, will revert to the Assembly after the completion of the pilot study.
He then spotlighted the successful completion of the review of salary survey methodologies for the General Service and related categories. The new methodologies will come into effect as of 1 January 2023 with methodology I applied to the eight common system headquarters duty stations and methodology II applied to all other duty stations. The Commission, he continued, has also decided that the national civil service should be represented by a mainstream national ministry. A pilot project for external data would be implemented at all duty stations whereby salary assessments may be conducted on the basis of external salary data procured from external vendors. On the review of the current compensation package, he said the Commission is undertaking a holistic approach that focuses on geographical distribution, workforce rejuvenation, gender parity and multilingualism. The annual report also provides in‑depth details of other items including Standards of Conduct, the recruitment incentive and the reviews of other allowances and incentives, he noted.
Mr. HAMZAOUI, Chief, Conferences, Security, Construction and Common Support Services Service, of the Programme Planning and Budget Division, Office of Programme Planning, Finance and Budget, Department of Management Strategy, Policy and Compliance, introduced the Secretary‑General’s statement (document A/C.5/77/4) detailing budgetary implications arising from the report of the ICSC for 2022. He said the Commission’s report contains recommendations that call for decisions by the Assembly which give rise to budgetary implications for the proposed programme budget of the United Nations and peacekeeping operations on: the harmonization of the provisions for annual leave for temporary appointments across the common system organizations at 2.5 days or leave per month; an increase in the base/floor salary scale; and revision of allowances for children and secondary dependants. The report also presents two decisions of the Commission ‑ the increase in the hardship allowance and revision of the amounts for the mobility incentive ‑ which have budgetary implications.
If the Assembly approves the Commission’s recommendations, the budgetary implications for the proposed programme budget for the year 2023 and for the Commission’s decisions would be $4.07 million, he said. This, he noted, would be included in the context of the revised estimates for the effects of changes in exchange rates and inflation for the period. For peacekeeping operations, the budgetary implications are estimated at $1.74 million for the financial period 2022/2023 and $3.49 for 2023/2024. He emphasized that these implications would be taken into account, as necessary, within the context of the performance reports for 1 July 2022 to 30 June 2023 and the upcoming proposed budgets for 1 July 2023 to 30 June 2024.
Mr. CHUASOTO, ACABQ Vice Chair, introduced the Advisory Committee’s eponymous report covering the budget implications of the Commission’s decisions and recommendations (document A/77/7/Add.11). The Advisory Committee recommends that the Assembly take note of paragraph 14 of the Secretary‑General’s statement. If the Assembly approves the ICSC’s recommendations, the budgetary implications for the 2023 proposed programme budget, along with the budgetary implications of the ICSC’s decisions, are estimated at $4.07 million and would be included in the revised estimates: effect of changes in rates of exchange and inflation for the period. The budgetary implications for peacekeeping operations are estimated at $1.74 million for the financial period 2022/23, and at $3.48 million for the financial period 2023/24. They would be accounted for in the performance reports for the period 1 July 2022 to 30 June 2023 and in the upcoming proposed budgets for the financial period from 1 July 2023 to 30 June 2024.
The Committee’s attention was then drawn to the 4 November letter from the President of the General Assembly, addressed to the Chair of the Fifth Committee (document A/C.5/77/16), by which Assembly President Csaba Kőrösi (Hungary) transmitted a 3 November letter from the Chair of the Sixth Committee (Legal), Pedro Comissário Afonso (Mozambique), regarding the United Nations common system.
TANYA QUINN-MAGUIRE, President of the Federation of International Civil Servants’ Associations, regretting that FICSA’s request to participate in the meetings of the working group on the review of the jurisdictional set‑up of the common system as an observer was denied, requested full participation in the consultations. Failure to do so would risk strengthening any negative perception of the lack of transparency in applying ICSC methodologies to determine the level of staff compensation. The proposal to establish a joint chamber as outlined in document A/77/222 would not address the root cause and would infringe upon the independence and autonomy of the tribunals, she said. On the proposal to amend the ICSC statutes with a view to eliminating any legal ambiguity which may have contributed to the current post adjustment situation in Geneva, she remained concerned that despite the vastly improved consultation process with ICSC during the last round of surveys, the issue has not been resolved. FICSA awaits with interest the legal advice from the Office of Legal Affairs.
The Assembly’s approval to harmonize the accrual of annual leave across the common system for staff on temporary appointments as per paragraph 63(a) of document A/77/30 will ensure that the common system treats its staff equitably and staff at the same grade, working side by side, do not experience vastly different leave entitlements, she said. On the revised methodology for children’s and secondary dependency allowance, FICSA notes with concern that staff have not received any legitimately expected adjustments in line with the agreed ICSC methodology since 2011. While preferring to retain the current methodology, the Federation would support the recommendations in paragraphs 170 and 171 of document A/77/30 as a pragmatic attempt to resolve this long‑standing issue.
An active participant in the ICSC working group on parental leave and the related technical task force, the Federation believes the decision presented in paragraph 91 of document A/77/30 is a step towards the United Nations achieving gender parity and workforce rejuvenation for a relatively minor financial investment by the organizations, she said. Regarding the level of the hardship allowance, she said the modest increase resulting from the update based on the agreed methodology will address concerns raised by staff and organizations and will help to ensure that the United Nations can continue to attract staff to the duty stations where they are needed most. The consistent lack of adequate resources in the Organization impacts programme implementation and also adds to the ever‑increasing pressure on staff which directly effects their mental health and wellbeing, with the real and present threat of burnout or worse, she said, calling for a modest investment as recommended by ICSC to help ensure the common system continues to be fit for purpose and effectively delivers.
MARK POLANE, speaking on behalf of the United Nations International Civil Servants Federation, said that constructive upstream consultations have resulted in decisions and recommendations which the Federation fully endorses. In welcoming the recommendation to harmonize leave provisions for staff on temporary contracts, he reiterated his concerns over the continued use of contractual agreements where salaries and emoluments are negotiated individually. The practice falls so far outside the common system approach that it begs the question as to why the practice is allowed to continue, he observed. There is an even more worrying trend, he pointed out, of organizations concluding framework contracts allowing for the “wholesale” outsourcing of core and mission-critical functions to private companies. He then urged the Fifth Committee to examine if these outsourced activities continue to meet the Assembly’s criteria. Is the prospect of Member States’ financial contributions filling the coffers of corporations and their shareholders at the cost of employment precarity a desired model of operations, he wondered.
Turning to the ICSC working group on reviewing Standards of Conduct, he emphasized the need to encourage a “speak up” culture. Existing policies have failed to correct the prevailing culture whereby staff are scared to speak up, he noted. Instead of addressing issues of corruption and mismanagement, organizations prioritize the avoidance of bad press and minimize reputational damage in the short-term. Recent front-page scandals, he continued, have demonstrated that the international monitoring and ethnics functions are not robust enough to remain independent when corruption is prevalent at senior levels. The Assembly must genuinely strengthen accountability and whistle-blower protection from a system-wide perspective, he urged. Regarding the post adjustment issues, he supported the draft amendment to article 10 of the ICSC Statute in “L.5” as a legally consistent and practical means to resolve the underlying issue. Proposal 3, he cautioned, will only add delays, confusion and costs.
PRISCA CHAOUI, President of the Coordinating Committee for International Staff Unions and Associations, regretted the gender imbalance in the ICSC composition and hoped that efforts will be made in the future to address this issue. She reaffirmed the importance for the common system organizations to consider strictly adhering to the three types of contracts, she said, noting that the Coordinating Committee has lately noticed more organizations abolishing continuing contracts in favor of precarious contracts, which threatens the independence and impartiality of the international civil servant function. The Coordinating Committee fully supports the harmonization of leave days between temporary and continuing and fixed-term contracts based on the principle of equal salary for work of equal value, she said, also welcoming the recommendations on parental leave, and the revision of the children and secondary dependents allowances.
Ms. GUO (China) called for further work to advance the effectiveness of the common system and enhance the scientific management of its human resources. Geographical representation of developing countries in the international civil system should also be improved, she encouraged. Turning to the immense financial, legal and administrative challenges from the concurrent application of divergent post adjustment multipliers, she urged the Fifth Committee to “play our part” and adopt viable means as quickly as possible to resolve the issue, uphold the system’s unity and cohesion and prevent the recurrence of a similar problem. When deciding on raising entitlements for staff members, factors - such as the appropriate comparators; social and economic development levels of Member States; their capacity to pay; and the incentive function of adjustments – must be considered in a holistic manner. By adjusting standards in an incremental and evidence-based manner, Member States are able to meet their financial obligations and entitlements can boost the morale of staff, she emphasized.
KAWASAKI YUTA (Japan) underscored the need for the common system to remain fair and sustainable through continuous review. It must also reflect changes in economic situations - including the cost of living - to maintain the confidence placed in it, he added. As such, ICSC plays a key role in reviewing the system and guide all entities to ensure coherence and effective management. The continued application of two divergent post adjustment multipliers in Geneva, he emphasized, jeopardizes the consistency and stability of the common system and should be addressed by the Assembly. On the ICSC’s recommendations, he noted the revisions to base salaries and allowances would require significant resources. In looking forward to examining the rationales and justifications behind these proposals, he stressed the importance of ensuring efficient resource use to maintain the highest motivation and confidence of the Organization’s greatest asset, its staff.
DANIIL A. DEVYATKIN (Russian Federation) reiterated his support for ICSC’s mandate, as well as his commitment to maintaining the common system’s unity and cohesiveness. The benefits gleaned from the functioning of a holistic and united system should not be perceived by other international bodies as a given; these are privileges that must be treated with the utmost respect, he stressed. In noting the Commission’s decisions and recommendations, he urged the Fifth Committee to focus first and foremost on the allowances which the Assembly has not acted on for a while.
OLGA ROMANOVA (United States), said her Government has always been committed to ensuring that United Nations personnel are empowered and compensated in a transparent manner. She noted that last year the General Assembly approved a series of measures revising the structure and content of the next staff compensation review, including improving job classification, among other areas. Globally, workforce priorities are changing, and therefore thinking about workplace compensation packages must take into account these changes, she stressed. In reviewing the recommendations for changes to benefits and allowances, the objective of the allowance or benefit must be considered and assessed as to whether it meets its purpose, and whether it, as currently structured, fails to remove barriers to entry‑level staff, which may deter some demographic groups from employment within the United Nations system. If an allowance does not remove barriers, it should be restructured to ensure a greater benefit to those who earn less. The world is changing fast, and the skills the United Nations system needs are also evolving, she said, stressing that the common system must ensure that best practices are replicated. Changing career paths must be taken into account, she added.
The representative of Cuba said as the staff unions have pointed out during the meeting, the recommendations made by the ICSC would have a positive impact on international civil servants working within the United Nations system, including by harmonizing the conditions of service for temporary staff, more favourable conditions for maternity and paternity leave, and harmonizing the post adjustment in Geneva. All these matters are of particular importance to ensure there is an efficient international civil service working under the aegis of the United Nations system, he said. Cuba appreciates, he said, the work of ICSC to strengthen equitable geographical representation of all Member States in the common system, and will work constructively to ensure that this agenda item can be crowned with success.