United Nations, New York, 14-25 July 2003
Highlights of the 57th Session of the ICSC:

• PAY FOR PERFORMANCE
• BROAD BANDING
• GS SALARY SURVEY  METHODOLOGY, HQ and Non HQ
• MOBILITY
• NEW CLASSIFICATION SYSTEM
• CONTRACTUAL ARRANGEMENTS

The ICSC (International Civil Service Com- mission) was briefly described in the July/August issue of the UNSpecial, which also included agenda items that were to be discussed at its 57th session. Present were 14 of the 15 Commissioners, staff of the ICSC Secretariat, members of the HR Network, which include HR specialists from individual organizations and staff representatives from CCISUA (Coordinating Council for Interna- tional Staff Unions and Associations for the United Nations System) and FICSA (Federation of International Civil Servants’ Associations). The ICSC documents cited below can be accessed at http://icsc.un.org.

Review of the pay and benefits system : Pay for performance and broad-banding/pilot study (ICSC/57/R.2 and R.2 Add.2)
Three organizations have volunteered to pilot the broad banding and pay for performance scheme — IFAD, WFP and UNAIDS. To proceed in 2004, much remains to be accomplished, inter alia, establishing base- line data prior to the commencement of the study, developing more concrete criteria, recruiting a project manager, identifying a team leader at each volunteer organization, and establishing a task force to monitor progress. The HR Network emphasized the importance of establishing mutual trust among all parties in this exercise, the Com- mission, representatives of the organizations, and staff representatives.

The Staff Representatives pointed out that in view of the information on performance appraisal systems provided, it was evident that organizations were neither ready to pilot broad banding nor any other pay for performance scheme. They insisted that the current incremental step system, was in fact conceived originally as a pay for performance system and that this concept is still valid. Better training of managers, account- ability, and the application of existing rules would do more to serve the needs of the organizations. The representatives were concerned that pay for performance based on cost neutrality could create a "beggar-thy-neighbor" policy that would pit one staff member against another for a finite amount of money. Recognizing that the Commission would proceed with the pilot studies, the Staff Representatives insisted that a clear communication strategy with staff be established prior to any action taken. The Com- mission agreed that such a strategy would address the needs of all interested parties.

Pay and Benefits Reform – Promulgation of the New Master Standard (ICSC/57/R.2 Add. 1)
The Commission noted that the New Master Standard⁽¹⁾ (NMS) is ready for implementation. It also noted that further development of job classification standards for the General Service and related categories be considered. The HR Network looked for- ward to the promulgation of the NMS and to the requisite briefing and training to be provided by the ICSC. It also looked forward to the chance to collaborate further on development of the grade level descriptors. FICSA reserved its support on the promulgation of the NMS until it had received the final version of the updated programme. More clarity on language and the weights was needed as well as an indication that this standard could be applied with consistency across the common system. Staff Representatives sought clarification on the role of HR personnel in applying the new standard.

CCISUA believed it was conceivable that the less precise criteria which no longer refer to master degrees, years of work experience, number of languages required, etc., would make it even easier to recruit less qualified external candidates over better qualified internal candidates than is presently the case.

Regarding the development of new job classification standards for GS staff, FICSA expressed its concerns about the impact this could have on the Flemming Principle⁽²⁾ and requested asked that it be part of any working group set up to discuss the issue. The Commission agreed that the ICSC secretariat should pursue further research, in consultation with organizations and staff, and provide it with a report.

Contractual Arrangements (ICSC/57/R.3)
All parties recognized the need for contractual arrangements that would provide the flexibility that the organizations need to carry out their work. The Commission pointed out that there are too many con- tracts in the common system and that the number should be reduced, as had been pointed out by the General Assembly. The representatives supported 3 types of con- tracts as these can meet the needs of organizations if properly administered: the temporary contract for truly temporary work, the fixed-term, and the permanent/indefinite contract also known as a career contract. They pointed out that no matter what type of contract organizations chose to use, abuse and misuse of contracts, notably temporary ones and ALDs (Assignment of Limited Duration) are on the increase and is particularly acute in the field where staff are more vulnerable. They also urged that the practice of using short-term contracts for long-term needs be stopped.

It was clear that there are moves to make the career contract a thing of the past, a contradiction to the message organizations wish to convey that they are aiming at enhancing recruitment, retention, and competitiveness to make the UN a more attractive and responsible employer. The Commission requested its secretariat to prepare, in collaboration with the organizations, a model contract for each of the following three categories proposed, namely (a) continuing appointments; (b) fixed-term appointments; and (c) temporary appointments, with sub-groups under each category that would clearly distinguish key characteristics.

Framework for Mobility (ICSC/57/R.4)
The Commission considered this document with a view to formulating a frame- work to enhance mobility in the common system. The document addressed such issues as the linkage between mobility and career development and the current obstacles to mobility. The HR Network informed the Commission that the HLCM⁽³⁾ had discussed inter-agency mobility at its June 2003 session and, as a result, is setting up a working group to examine practical ways of promoting inter-agency mobility and removing current administrative impediments.

The staff representatives advocated that efforts should be made to take a holistic approach to ensure that all pillars supporting new policies on mobility were in place prior to implementation. They agreed that inter-agency mobility should be made easier so that staff could gain experience throughout the common system by working in different organizations; further- more, they stated that service in all organizations should count towards seniority and advancement, including promotions earned while on secondment; the right to return to the "releasing" organization should be guaranteed for two to four years; FICSA believed that all staff should be considered as internal candidates for vacant posts throughout the common sys- tem, while taking into consideration the promotional opportunities of staff in individual organizations; and that opportunities for staff to spend time outside the sys- tem should be encouraged, e.g. by granting paid sabbatical leave. While supporting FICSA’s views on the issue, CCISUA declared that no staff from specialized agencies should be considered as internal candidates, as long as there was not a proper evaluating system recognizing the contribution and competencies of internal candidates. Noting that in the private sector mobility was rewarded generously, FICSA took the view that the financial incentives for mobility should be maintained.

The Commission decided that it should approach mobility in harmony with contractual arrangements, conditions of employment, work/life agendas, and spouse employment and identified four key areas where programmes should be developed to enhance mobility: (a) development of strategies to change organizational culture with regard to mobility; (b) a clear definition of various types of mobility (c) terms of contracts, which should include conditions of employment including mandatory mobility, where appropriate; and (d) spouse employment. The Com- mission also decided to review the current mobility and hardship scheme in order to assess its effectiveness in meeting the organizations’ needs and to make alternative proposals to enhance mobility.

Linkage Between Mobility and Hardship Allowance and Base/floor Salary Scale (ICSC/57/R5)
The current mobility and hardship scheme which went into effect on 1 July 1990 was approved by the General Assembly as part of the package of measures emanating from the 1989 comprehensive review of conditions of service of staff in the Professional and higher categories. One of the main features of the scheme is the mobility and hardship allowance. Since then, the Commission has been requested to review the scheme and report back the General Assembly. The Commission found no basis for changing the system and recommended the linkage to be maintained. More recently the Assembly again requested the Commission to review the linkage. The Commission explained that the issue in question was that over the years some Member States had expressed concern about the scheme’s linkage to the base/floor salary scale, which resulted in its automatic adjustment every time the base/floor salary scale was revised, leading to ever- increasing costs.

The HR Network as well as the staff representatives were opposed to the idea of de-linking mobility and hardship allowance from base/floor salary scale. They recalled the importance of mobility and hardship allowance in organizations’ efforts to promote mobility and address problems of recruitment and retention in certain duty stations. They added that any diminution of the mobility and hard- ship allowance would contradict the call for enhanced mobility policies in the common system.

The Commission decided to report to the Assembly that its recommendation would be to keep payments under the scheme at the current level for the time being and that in the meantime it would keep the matter under close review and would present a final report to the Assembly at its fifty-ninth session.

¹⁾ New approach to job evaluation system for Professional and higher categories are being introduced in the UN common system, that builds on the strengths of the previous system and has the capacity to assess jobs across occupations and different work/organizational settings

²⁾ The Flemming Principle establishes the conditions of service for General Service staff on the basis of the best prevailing local conditions. The principle has been subject to several reviews since its adoption by the General Assembly in 1949.

N.B. The Noblemaire Principle, establishing the practice of basing the salaries of international civil servants on those of a comparator civil service, arose from a Committee of Experts, the Noblemaire Committee, that, in 1921, came up with a proposal to base the salaries of Professional staff on those of the best paid civil service in the world. Since that time, the report of the Noblemaire Committee has served as the rationale underlying the salary system and has come to be referred to as the Noblemaire Principle. In 1921, the comparator (for the League of Nations) was the British civil service. Since the founding of the United Nations in 1946, the United States of America’s national civil service has been the comparator.

³⁾ HLCM – High Level Committee on Management is the principal inter-agency body for coordination in the administration and management areas, particularly regarding financial and budgetary issues; human resources related issues; information and communication technology and staff security within the UN system It was established by the United Nations System Chief Executives Board for Coordination (CEB) in October 2000. Its main function is to advise CEB on administration and management issues that are of system-wide importance and to promote inter-agency cooperation and coordination on these matters on behalf of CEB. HLCM is composed of senior representatives with responsibilities in administration and management from member organizations and authorized to take decisions on behalf of their Executive Heads.