In progress at UNHQ

Seventy-eighth Session,
25th & 26th Meetings (AM & PM)
GA/AB/4449

Urging More Geographically Diverse Workforce, Fifth Committee Delegates Stress Human Resource Policy Changes Require Input of General Assembly, Member States

Delegates in the Fifth Committee (Administrative and Budgetary) supported proposed amendments to the United Nations Staff Regulations and Rules, also lending support for human resource management reforms aimed at creating a more equitable and geographically balanced staff representation at the Organization, particularly considering the plight of developing countries.

Cuba’s delegate, speaking for the Group of 77 and China, and welcoming the Secretary-General’s efforts geared towards improving human resource management within the UN system, however, pointed out that such policy adjustments must necessarily incorporate the significant input and guidance of both Member States and the General Assembly.  He further underscored the importance of available resources to the adequate fulfilment of the Organization’s mandates as well as the implementation of initiatives addressing the inequitable geographical array of Member States within the 193-member community.  “We therefore support reforms which contribute to a highly motivated, diverse and dynamic workforce for our Organization, with a view to making it more representative, fair, transparent, accountable and responsive to the needs of its Member States,” he said.

In the same breath, the representative of China, noting that addressing such geographical representational imbalances of staff within the UN system is a common concern for a vast number of developing countries, urged for practical measures to be implemented thereat in line with Article 101 of the UN Charter and the resolution on human resources management adopted by the Assembly in its penultimate session.  Commending the improved efficiency of the UN system on account of the Secretariat’s recent human resource management reforms, she urged that the Organization’s Staff Rules and Regulations be revised within the ambit of the Charter’s authority as well as resolutions of the General Assembly.

Martha Helena Lopez, Assistant Secretary-General for Human Resources, introduced the Secretary-General’s report “Amendments to the Staff Regulations and Rules”, which includes the Secretary-General’s full text of proposed amendments to Staff Regulations and amendments to Staff Rules, including provisional Staff Rules. They include new regulations on employment and accessibility for staff members with disabilities; education grants; a new parental leave framework; and a new amendment on child, early and forced marriage.  Juliana Gaspar Ruas, Vice-Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced its related report.

In the first business of the day, Maria Costa, Director of the Finance Division of the Office of Programme Planning, Finance and Budget of the Department of Management Strategy, Policy and Compliance, introduced the Secretary-General’s reports on the impact that changes in exchange rates and inflation had on the 2024 budget proposals.  They showed revised recosting amounted to $163.2 million, or $99.0 million more than preliminary recosting of $64.2 million.  As for the report on the impact on the International Residual Mechanism for Criminal Tribunals, she noted that because of the application of updated recosting rates, the revised recosting represents an increase of $3.7 million — $2.0 million more than the preliminary recosting estimated at $1.7 million in the proposed budget.  Again, Ms. Ruas introduced the related report by ACABQ.

The Committee then suspended its closing session as its Chair, Osama Mahmoud Abdelkhalek Mahmoud (Egypt), urged the delegates to continue working throughout the weekend in order to conclude their seventy-eighth session as soon as possible.

Noting that the Assembly on 10 November extended the Committee’s fall session until 15 December, Mr. Mahmoud pressed delegates to reach consensus in the next hours on the numerous outstanding agenda items.  “We are quickly running out of time, and it is of utmost importance that we conclude our work over the next few hours,” he said, adding the approval of a budget is very important while other items can be handled in the resumed session in March.

He then gave coordinators of various agenda items an opportunity to present an update on the status of negotiations.

Cuba’s delegate, speaking again for the Group of 77 and China, said it is very eager to conclude this session, which has been very intense.  Yet some reports had just been introduced today, and delegates needed time to digest the information and coordinate positions within the Group.  “We need engagement and commitment to understand what are the problematic areas,” he said, adding that some delegations within the Group have just one representative.  This delegate must negotiate complex issues like the budget and other agenda items.

Mr. Mahmoud said he empathized with the delegations’ position but urged them to make important decisions on what issues must be handled now and what can be placed on the shelf.

Proposed Programme Budget 2024: Exchange Rates and Inflation

MARIA COSTA, Director, Finance Division, Office of Programme Planning, Finance and Budget, Department of Management Strategy, Policy and Compliance, introduced the Secretary-General’s reports on the impact that changes in exchange rates and inflation had on the 2024 budget proposals. She first presented “Revised estimates: effect of changes in rates of exchange and inflation” (document A/78/614), which showed revised recosting totals of $163.2 million, or $99.0 million more than preliminary recosting of $64.2 million.  Resource requirements were adjusted based on updated projections for inflation, changes in rates of exchange, and updated estimates for posts, which capture the latest decisions of the International Civil Service Commission (ICSC) on the salaries for Professionals.  The vacancy rates proposed for 2024 are 11.1 per cent for the Professionals and 9.1 per cent for the General Service staff, compared to 11.5 per cent for Professionals and 10.7 per cent for General Service staff, included in earlier 2024 programme budget proposals.

The increase of $99.0 million primarily reflects the more comprehensive recosting performed in the second recosting process, which includes adjustments to salaries of professionals in line with the updated scales disseminated by the ICSC ($19.8 million) and common staff costs ($34.3 million), she said.  In addition, the Secretary-General proposes lower vacancy rates ($17.1 million) and higher provisions for staff assessment ($18.6 million) in line with the higher salary scales approved by the ICSC for Professionals and the higher provisions for General Service salaries that were adjusted based on inflation and exchange rates.

In response to recommendations of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), the report was expanded to include analysis on the actual impact of recosting, compared to its estimated impact, she said.  By comparing the recosting adjustments applied to a group of items to the actual changes in prices for those items, the analysis showed the current recosting approach is reasonably accurate.  The items were selected based on their perceived relevance and interest, as expressed by the Assembly and ACABQ through recent resolutions and reports.  The expanded report reflects the Secretariat’s efforts to facilitate the Advisory Committee’s and the Assembly’s deliberations on recosting and improve transparency.

Presenting “Revised estimates for the International Residual Mechanism for Criminal Tribunals:  effect of changes in rates of exchange and inflation” (document A/78/634), she said that because of the application of updated recosting rates, the revised recosting represents an increase of $3.7 million.  That is $2.0 million more than the preliminary recosting, which was estimated at $1.7 million in the proposed budget. The increase mainly reflects higher-than-projected inflation for the United States and the eurozone and higher provisions for common staff costs.

JULIANA GASPAR RUAS, Vice-Chair of ACABQ, introducing its related report on revised estimates due to the effect of changes in exchange rates and inflation (document A/78/7/Add.42), noted that reverting to an annual budget process necessitates further analysis of the recosting, its frequency and related methodology.  It also requires a comprehensive assessment of the  frequency of recosting within the budget period, background information, analysis of peacekeeping operations and special political operations as compared with the regular budget and an evaluation of the related advantages and disadvantages of recosting instances, taking into consideration related methodological requirements and the impact on hedging.  As for resources for posts and positions, greater clarity on the nature, number and incumbency of General Temporary Assistance positions is required.  She trusted that additional information regarding the methodology for the calculation of common staff costs and the historical evolution of estimates and related expenditures will be provided in future reports.

Noting that the approved vacancy rates for 2023, the impact of the hiring restrictions on the vacancy rates, and the actual vacancy rates for 2024, estimated at 11.1 per cent for Professionals and at 9.1 per cent for General Service staff, used in the current revised estimates have resulted in increased provisions for posts and positions amounting to $26.2 million, she recalled the observations and recommendations of ACABQ’S first report on the proposed 2024 programme budget that budgeted vacancy rates should be realistic and based on the actual vacancy rates experienced during the previous periods.  Further, the Advisory Committee trusts that detailed explanations and information on requested and granted exceptions to the hiring restrictions will be provided to the Assembly, and it also expects greater detail on the main drivers of the recosting of post resources, including the post adjustment multiplier, vacancy rates and common staff costs, and the relationship between them, in the Secretary-General’s next report.

Turning to non-post resources, she requested further clarification on the estimated and actual rates of electricity in 2023 by location and urged that the general procurement principles as set out in financial regulation 5.12 be consistently applied in the case of ticket prices and vehicle costs.  The actual impact of recosting should be reviewed systematically, including on posts and positions resources, compared with the initial estimated budget before recosting, she said, trusting that greater clarity on the conditions and methodology applied to the adjustments to the baseline of post and non-post resources of the proposed programme budget will be presented in the next Secretary-General report. 

She went on to present the report of ACABQ on the revised estimates stemming from the effect of changes in rates of exchange and inflation for the International Residual Mechanism for Criminal Tribunals (document A/78/7/Add.41).  She said the Advisory Committee was informed that the related impact on the updated recosting would amount to a reduction of $65,500 if the Assembly endorses its recommendations regarding the 2024 proposed budget for the Mechanisms.  The Advisory Committee expects that further information will be provided to the Assembly in this regard and makes further observations and recommendations in respect of recosting in its report on the effect of changes in exchange rates and inflation.

Amendments to Staff Regulations and Rules

MARTHA HELENA LOPEZ, Assistant Secretary-General for Human Resources, introduced the Secretary-General’s report “Amendments to the Staff Regulations and Rules” (document A/78/177), which includes the Secretary-General’s full text of proposed amendments to Staff Regulations and amendments to Staff Rules, including provisional Staff Rules.  The amendments proposed for Staff Regulations include the new regulation 1.3 on employment and accessibility for staff members with disabilities; amendments to regulation 3.2 on education grants, which provide flexibility for tuition payments to teach the mother tongue of either child’s parent; and the establishment of a new parental leave framework by which the current wording of “maternity” and “paternity” leave has been replaced by “parental” leave.

She then outlined several amendments to the Staff Rules being reported to the Assembly.  This includes one amendment pertaining to Assembly resolution 73/153 on child, early and forced marriage, in which the Assembly called upon States to develop and implement measures at all levels to end such marriages.  The reference to the marriage of a staff member with a person who is under the age of 18, but over the age of majority or consent in his or her country of citizenship, was removed from provisional rule 1.2 (Basic rights and obligations of staff), paragraph (e), on specific instances of prohibited conduct.  A provisional rule regarding employment and accessibility for staff members with disabilities was added.  Regarding salary policy, provisional rule 3.3 was modified to ensure that salary steps in grade are determined consistently, regardless of whether the staff member changes category, is appointed or is selected for a new position at a higher level within the same category.

Turning to provisional rule 4.4 (staff in posts subject to local recruitment), she said paragraph (b) reflects the increased flexibility in the use of National Professional Officers, in accordance with guidelines of Assembly resolution 72/255.  Turning to Assembly resolution 77/256, she said provisional rule 6.3 on parental leave reflects a change in the parental leave entitlement to replace the current maternity, paternity and adoption leave provisions with a parental leave provision of 16 weeks for all parents.  It also provides an additional period of 10 weeks for the parent who gives birth.  Regarding travel, she said in accordance with Assembly resolution 72/262 B, provisional rule 7.3 reflects that for all official travel by air, the Deputy Secretary-General, the Under-Secretaries-General and the Assistant Secretaries-General, and their eligible family members, shall be provided with a standard of travel immediately below first class unless economy class transportation is otherwise provided for under conditions established by the Secretary-General.

Ms. LOPEZ said updates to the scales on salary and pensionable remuneration and pay protection measures were also reflected.  Editorial changes were made to simplify and streamline the texts, improve their clarity and eliminate duplication.

Ms. RUAS, presenting the body’s related report (document A/78/671), observed that ACABQ had considered an advance version of the Secretary-General’s report.  Because the final published version of the report will contain more editorial changes, she trusted that all changes from the further editorial review being undertaken will be provided to the General Assembly. Recalling the Secretary-General’s efforts to review the complete set of the Staff Regulations and Rules, she noted that the provisional Staff Rules promulgated and effective as of 1 January 2023 already contain some of the proposed amendments to the Staff Regulations currently submitted to the General Assembly for approval.  Amendments involving significant policy changes should have been first proposed in the staff regulations to the Assembly for approval.

 “The Advisory Committee does not see the stated linkage between the proposed gender-inclusive language and General Assembly resolution 72/147,” she said.  The language goes beyond the contents of the Staff Regulations and Rules, and this is a policy matter for the General Assembly.  She noted that the proposed amendments have financial implications or higher expenditures and trusted that more information and clarification will be provided to the Assembly, along with expenditures incurred during 2023 for the implementation of the new parental leave framework under the regular and peacekeeping budgets. She welcomed the proposed new provision on employment and accessibility for staff members with disabilities, adding that the detailed recommendations of ACABQ on the proposed amendments to Staff Regulations and the provisional Staff Rules are contained in its report.

RICHARD TUR DE LA CONCEPCIÓN (Cuba), speaking on behalf of the Group of 77 and China, supported the Secretary-General’s efforts to improve human resources management and acknowledged that the appropriate delivery of UN mandates depends on the quality of staff and the availability of resources.  “We therefore support reforms which contribute to a highly motivated, diverse and dynamic workforce for our Organization, with a view to making it more representative, fair, transparent, accountable and responsive to the needs of its Member States,” he said.  The Group maintains its permanent position that addressing the issues of the unrepresentation and underrepresentation of UN staff members is a common concern for developing countries.  He appealed to the Secretariat and all organizations in the common system to comply with Article 101 of the UN Charter and make effective initiatives to improve equitable geographical representation.

While acknowledging the Secretariat’s progress, he stressed that amendments involving significant policy changes should be first proposed in staff regulations to the Assembly for its approval.  “Any policy change cannot be introduced without comprehensive information from Member States and without guidance from the General Assembly,” he said.  Understanding that the main objective is to streamline and simplify amendments to make them more readable and understandable, he said not all proposed changes represent simplification.  He also noted that the Secretary-General has indicated the absence of programme budget implications.  Yet provisional rule 3.3 (Salary policy), concerning the determination of salary steps in grade, and provisional rule 6.3 (Parental leave), reflecting a change in the parental leave, both have financial implications or higher expenditures. The Group looks forward to detailed information and clarification concerning financial implications, particularly regarding the application, since 1 January 2023, of provisional rule 3.3 on the determination of step-in-grade, he said.

GUO KE (China), aligning herself with the Group of 77 and China, observed that high-performing, multilingual and diverse human resources are an asset of the Organization and critical to realizing the Sustainable Development Goals.  She noted that the Secretariat’s recent initiatives on global human resources management reform aimed at strengthening human resources in institutional reorganization, developmental planning, resource allocation, training and public awareness, and implementing of the system of accountability have effectively improved the UN system’s efficiency.  China supports these reforms, she said, noting that addressing imbalances in geographical representation of staff in the UN system is a common concern of a vast number of developing countries.  As such, practical actions should be taken in this regard in accordance with Article 101 of the United Nations Charter and  the resolution on human resources management adopted by the Assembly in its seventy-seventh session.  Revision of the UN Staff Rules and Regulations should be implemented within the authority conferred by the Charter and Assembly resolutions, giving attention to Member States’ views, she said.

Review of Efficiency of UN Administrative and Financial Functioning

OSAMA MAHMOUD ABDELKHALEK MAHMOUD (Egypt), Fifth Committee Chair, then drew the Committee’s attention to an oral draft decision, to be adopted in the context of agenda item 132, “Review of the efficiency of the administrative and financial functioning of the United Nations”. Through this decision, the Committee would recommend to the Assembly that consideration reports under that agenda item would be deferred to the first part of the resumed seventy-eighth session.  In this regard, the deferral of the reports on the Amendments to the Staff Regulations and Rules means the Provisional Staff Rules contained in section 1 of ST/SGB/2023/1/Rev.1 will remain provisional.

The Committee approved the oral draft decision by consensus.

Mr. MAHMOUD then told delegates they were starting the real work of the Committee, and the “moment of truth” had arrived.  He urged them to work expeditiously to complete their work.  Committee coordinators have made great progress, and the Committee would meet at 5 p.m. today to assess its progress and the modalities needed going forward. He noted the Secretariat’s efforts to produce the crucial reports and reminded delegates of their serious responsibility to finish the Committee’s business.  The Secretariat will be available through the weekend.  He urged them to fulfil their duty.

For information media. Not an official record.