15 November 2001

The Fifth Committee concluded its consideration in formal session of the United Nations common system on 9 November 2001. Member States representatives focused on the pay and benefits system, contractual arrangements, conditions of service and the Standards of Conduct for the International Civil Service. The Committee plans to convene an informal session on 21 November.

Speaking on behalf of the European Union and associated States, the representative of Belgium reasserted the importance that the Union attached to the common system, which ensured equal treatment of staff within the United Nations. He supported the role played by ICSC and its work in the field of human resources. He was pleased that the Commission had completed its review of the Standards of Conduct and welcomed the evolution of the work on the review of the pay and benefits system. Regarding the review of the mandate, membership and functioning of ICSC, within the context of strengthening the international civil service, he said it was a useful element in the modernization of the system, and he regretted that there was no progress so far. He hoped a timetable would be established to further address the matter.

Speaking on behalf of the Rio Group, the representative of Chile reaffirmed the importance of the common system and the crucial role played by ICSC in coordinating conditions of employment. In general, he supported the recommendations contained in the report. Since the organization’s staff was its most valuable resource, it was crucial to integrate the best staff into the United Nations common system. The best possible conditions of service must be ensured, which would only be possible by offering competitive conditions in the labour market.

He agreed in principle with the updated Standards of Conduct. He stressed the need to defend the validity of the Flemming and Noblemaire principles, and stated that a modern system should be flexible and must provide sufficient guarantees to win the trust and dedication of staff.

Contractual arrangements should be adapted to the times and attract the most competent staff. Flexibility and stability should be made compatible.

He noted the fact that the margin for 2001 was below average, and stated that its evolution should be closely followed. With regard to strengthening the common system, he reiterated that any review of ICSC should enjoy the full participation of Member States to guarantee the transparency of the process.

The representative of Argentina said the work of the Commission had been fundamental to strengthening the common system and had led to concrete measures to strengthen conditions of service for staff. The review of the pay and benefits system was essential to modernizing human resources management, especially in view of the need to have a more effective link between contribution and compensation. Greater competitiveness and flexibility however must be balanced against the stability of posts and preservation of institutional memory.

He expressed concern about the evolution of the margin which had fallen to the detriment of staff. With regard to the review of ICSC, he stated that the process should be transparent.

The representative stated that his delegation attached great importance to the work of the International Civil Service Commission (ICSC), which was called upon to play a leading role in regulating and coordinating conditions of service in the United Nations system. In the context of the broad reform process throughout the common system, the significance of the conclusions drawn by the ICSC had increased. Most important last year was the Commission’s work on human resources in the common system. He was pleased that the updated Standards of Conduct had been completed and he recommended that the Assembly approve them on a consensus basis.

While the Commission was under constant pressure, it was important that it increase cooperation with partners. He expected that the Commission would streamline its processes and report to the General Assembly on the application of the revised rules of procedure. Regarding the review of the pay and benefits system, he noted that the idea of reforming the structure of reimbursement for senior workers was still under consideration and that concrete recommendations would be made at a later stage.

He stated that it was evident that the fundamental task of any reform was to increase the effectiveness of the work of secretariat organizations. Without fundamental reform of the contracts system - including the gradual phasing out of permanent contracts - any change in the pay system was unthinkable. The Commission had not given that due attention so far and had relied mostly on pay systems borrowed from the private sector and certain national civil services. He was not sure that they could be applied to the United Nations. The existing proposals involve potential expenditure and Member States must take that into consideration without forgetting other priority tasks facing the United Nations.

It was necessary to consider additional measures to encourage more active workers, while at the same time solving the problem of incompetence. The existing system of remuneration corresponded to the goals of the United Nations and assured a sufficiently attractive level of payment.

On the base/floor salary scale, he said that at an increasing number of duty stations, post adjustment indexes, which were supposed to ensure equal remuneration at different duty stations, were decreasing to the level of base salaries. The Russian Federation would like the Commission to correct the problem, which would give rise to additional financial consequences. It could consider establishing a base/floor salary scale at a lower level so as to exclude unjustified expenditures at duty stations where the post adjustment was zero, and remuneration had greater purchasing power compared to New York. The Russian Federation would continue to contribute to the central coordinating role of the Commission. He hoped that the present system would achieve more rational results.

The representative from China supported the fruitful work of ICSC in the development and improvement of the common system. Regarding the Standards of Conduct, he stated that international civil servants must accept more accurately defined standards of conduct and more universal values in view of the expanded functions of the UN system and changes in the international environment.

On contractual arrangements, he said that China believed that such arrangements had a direct bearing on work efficiency, and expressed pleasure to note that ICSC had emphasized flexibility while offering a degree of autonomy at the same time. The nature of activities should determine the nature of contracts. He said that while permanent contracts provided for better staff security, they did not encourage efficiency and the drive to excel. The most rational arrangement would be a flexible system, which would encourage career staff while preserving an element of competition.

The representative from Syria welcomed the comments made by the representatives of staff organizations, which he said were beneficial for the work of the committee.

He raised a question about the Standards of Conduct, asking the ICSC Chairman to shed more light on the Commission’s understanding regarding the need for international civil servants to respect local laws and regulations, as such language had been left out of the text adopted by the Commission.

The representative of the Dominican Republic endorsed the statement by the representative of Chile, on behalf of the Rio group, and said his delegation supported the report of ICSC in its fundamental aspects. However, the document should also reflect serious work on the reform of the contractual system, which would create more attractive working conditions for the staff of the common system. This would help bring in more competent staff. He also expected speedy results in the work on the pay and benefits system.

The Chairman of ICSC said he was grateful for the Committee’s support to simplify the pay and benefits system. He wished to assure delegations that felt uneasy about measures being considered. When reform of any kind was undertaken, it was only natural that there would be pros and cons, those who wanted evolution and those who were happy with the status quo. Each point of view would be considered so that, at the end of the day, no one would feel left out of the process. The ICSC and its working groups were committed to giving the fullest and fairest consideration to all ideas and views. When it presented its report on the subject, it would have done so by taking account of the diversity and complexity of stakeholders' ideas and views.

He said it was too early to forecast the financial implications of the reform under way. Reform, however, was rarely cost-neutral. Any new system had associated cost. Greater effectiveness and efficiency often came with a price. The maintenance of the status quo might have greater financial implications than reform because it no longer served the organizations and their interests. However, he went on, no one should worry unduly; the Commission was more than aware of its responsibility and intended to carry out its work with full respect for its underlying principles, the Noblemaire and Flemming principles.

Recalling why the Commission had embarked upon the review of the pay and benefits system, he said that the ICSC wanted to provide a system that enabled organizations to meet new challenges and to recruit and retain staff of the highest quality. With the support of Member States, the Commission would arrive at a pay and benefits system that met those criteria and was most appropriate for the United Nations system.

The Advisory Committee on Administrative and Budgetary Questions (ACABQ) expressed concern that the delegation of authority to programme managers and their accountability for the recruitment of staff, performance management and career development had not been included in the list of areas where the UN Office of Human Resources Management (OHRM) expects to achieve progress in the coming biennium. The Advisory Committee concluded that there is currently no effective machinery to monitor the delegation of authority. It also pointed out that delegation of authority is not synonymous with abdication of responsibility and reiterated that "it is absolutely essential to ensure that what is being delegated is clearly spelled out in writing". It is also important to ensure adequate staff resources to carry out delegated authority.