FC 99/11

Finance Committee

Table of Contents

I. International Civil Service Commission (ICSC)

A. UNITED NATIONS COMMON SYSTEM

B. CONDITIONS OF SERVICE OF STAFF IN THE PROFESSIONAL AND HIGHER CATEGORIES

C. REMUNERATION OF THE GENERAL SERVICE AND OTHER LOCALLY RECRUITED CATEGORIES

D. CONDITIONS OF SERVICE APPLICABLE TO BOTH CATEGORIES OF STAFF

E. STRENGTHENING OF THE INTERNATIONAL CIVIL SERVICE

II. United Nations Joint Staff Pension Board (UNJSPB)

1. A summary of the decisions of the United Nations General Assembly (UNGA) at its 56^th session (2001), which considered the annual reports of the International Civil Service Commission (ICSC) and of the United Nations Joint Staff Pension Board (UNJSPB) for 2001, and which have an impact on the conditions of service of staff, is provided below.

I. International Civil Service Commission (ICSC)

A. UNITED NATIONS COMMON SYSTEM

2. The General Assembly reaffirmed its commitment to a single, unified United Nations common system as the cornerstone for the regulation and coordination of the conditions of service of the United Nations common system, being convinced that the common system constitutes the best instrument to secure staff of the highest standard of efficiency, competence and integrity for the international civil service, as stipulated under the Charter of the United Nations. The UNGA also reaffirmed the statute of the Commission and its central role in the regulation and coordination of the United Nations common system.

B. CONDITIONS OF SERVICE OF STAFF IN THE PROFESSIONAL AND HIGHER CATEGORIES

Evolution of the margin

3. In accordance with its standing mandate from the UNGA, the ICSC continued to monitor the relationship (referred to as the margin) between the net remuneration of the United Nations staff in the professional and higher categories in New York and that of the comparator civil service (the United States federal civil service) employees in comparable positions in Washington, D.C. The Commission also included in its work a review of the differences between the United Nations and the United States net remuneration at individual grade levels as requested by the UNGA. The UNGA noted that the margin between the net remuneration of the United Nations staff in grades P-1 to D-2 in New York and that of officials in comparable positions in the United States federal civil service for 2001 was 111.0. It also noted that the United Nations/United States net remuneration ratios ranged from 117.1 at the P-2 level to 104.4 at the D-2 level and considered that this imbalance should be addressed in the context of the overall margin considerations established by the General Assembly.

Base/floor salary scale

4. The UNGA approved with effect from 1 March 2002 a revised salary scale of gross and net salaries for staff in the professional and higher categories. The increase of 3.87 per cent was not intended to be an increase in the remuneration as this increase would be offset by a corresponding decrease in the post adjustment classification of each duty station world-wide. In those countries, however, where the post adjustment multiplier would have fallen below zero, it was maintained at zero level. Accordingly, the staff in such duty stations have received a real increase in salary.

5. With effect from the same date, the amounts of the mobility and hardship allowance and the scale of separation payments were revised by the same percentage. The financial implication of these changes for FAO is estimated to be US$538 500 for the remaining part of the year 2002.

C. REMUNERATION OF THE GENERAL SERVICE AND OTHER LOCALLY RECRUITED CATEGORIES

Salary surveys

6. The UNGA noted the Commission's report on the surveys of best prevailing conditions of employment conducted in Rome and New York.

D. CONDITIONS OF SERVICE APPLICABLE TO BOTH CATEGORIES OF STAFF

Standard of conduct for the international civil service

7. The UNGA had previously noted the Commission decision to update the 1954 report of the International Civil Service Advisory Board, entitled "Standards of conduct in the international civil service", in consultation with participating organizations. The UNGA welcomed the recommended standards of conduct for the international civil service adopted by the Commission.

Introduction of the euro

8. The UNGA approved the recommendation of the Commission that:

1. as of 1 January 2002, the euro should be used as the official currency for those emoluments which were currently set in the national currencies of the twelve euro-zone countries, and that the national currency amounts should be converted by applying the respective fixed conversion rates and then rounded up or down to the nearest euro;
2. the converted values of the education grant for nine currency areas and of the children's and secondary dependant's allowances nine locations were changed over the euro as of 1 January 2002.

9. The UNGA also invited organizations to convert into euros, where applicable, their respective general service salary scales and allowances as of 1 January 2002.

E. STRENGTHENING OF THE INTERNATIONAL CIVIL SERVICE

10. The UNGA, having considered the note by the Secretary-General on the review of the ICSC and his report on strengthening the international civil service, requested the Secretary-General, in consultation with the Chairman of the ICSC, to present a timetable for the implementation of the review of the strengthening of the international civil service at the main part of the fifty-seventh session of the General Assembly.

II. United Nations Joint Staff Pension Board (UNJSPB)

11. There are no decisions to report. The Pension Board will meet in Rome in July 2002.