VZCZCXYZ0000
RR RUEHWEB

DE RUCNDT #1000/01 3102052
ZNR UUUUU ZZH
R 062052Z NOV 09
FM USMISSION USUN NEW YORK
TO RUEHC/SECSTATE WASHDC 7548
INFO RUEHME/AMEMBASSY MEXICO 0825
RUEHKO/AMEMBASSY TOKYO 8802

UNCLAS USUN NEW YORK 001000 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: AORC KUNR PREL UNGA
SUBJECT: UNGA/C-5: ICSC REPORTS ON COMMON SYSTEM: PROPOSAL 
FOR FIX-TERM EMPLOYEE SEVERANCE PACKAGE DRAWS G77/CHINA 
SUPPORT AND HESITATION FROM THE REST 
 
¶1. (U) SUMMARY: On 20 October, the Fifth Committee convened 
for a formal meeting to consider the report of the 
International Civil Service Commission (ICSC) pertaining to 
the U.N. Common System (Agenda item 139). The key issue 
pertained to the ICSC,s recommendation to introduce 
end-of-service severance pay for staff serving on fixed-term 
contracts. The idea received support from the G77, and China, 
while Japan and the U.S. raised strong objections. Other 
delegations, such as CANZ and Mexico, approached the 
recommendation with concern, while Russia spoke in favor of 
the payment in principle, but agreed that the matter deserves 
patient consideration. END SUMMARY. 
 
BACKGROUND ON THE COMMON SYSTEM 
------------------------------- 
 
¶2. (U) The UN Common System refers to the common system of 
salaries and benefits used by the United Nations and most of 
its affiliated organizations to avoid discrepancies in 
compensation as well as to prevent competition in 
recruitment. The fifteen-member International Civil Service 
Commission (ICSC) is responsible for regulating and 
coordinating the conditions of service for staff throughout 
the Common System. 
 
DELEGATIONS STAKE POSITIONS IN FORMAL DEBATE 
-------------------------------------------- 
 
¶3. (U) COMMISSION SUGGESTS SEVERANCE PAY AFTER 10 YEARS: On 
23 October, the Vice-Chairman of the ICSC presented the 
report of the ICSC, which called for, inter alia, the 
introduction of an end-of-service severance pay entitlement 
for fixed-term staff who have served for at least ten years 
whose contracts are not renewed.  The Vice-Chairman commented 
"Most commission members shared the view that some 
compensation should be offered to long-serving staff 
separating from organizations involuntarily upon expiration 
of their fixed-term contracts"   The Commission estimated the 
cost of the program at USD 4.6 million per annum, a sum said 
to be less than a buy-out option. 
 
¶4. (U) STAFF ASSOCIATIONS VOICE STRONG SUPPORT FOR 
END-OF-SERVICE SEVERANCE PAYMENTS:  The President of the 
Federation of International Civil Servants, Associations 
(FICSA), expressed strong support for the severance pay plan, 
but also contended that the entitlement should be awarded 
after only five years of service, as did the President of the 
Coordinating Committee for International Staff Unions and 
Associations (CCISUA).  CCISUA considers the matter of 
particular import to the United Nations, given that it 
employs approximately 80% of its staff on a contract basis. 
In contrast to the representatives of the other staff 
associations, the representative of the United Nations Civil 
Servants Federation (UNISERV) voiced strong opposition to the 
proposed end-of-service grant as proposed by the ICSC, 
stating that the compensation schedule for termination 
indemnities should be used instead. 
 
¶5. (U) GCC/CHINA SUPPORT ENTITLEMENT: Sudan, speaking on 
behalf of the G77 and China registered support for the 
severance plan, stressing a need to "offer the conditions of 
service which are more suitable to the United Nations 
employees and more attractive to those whom wish to work for 
the United Nations." Sudan referred to the severance plan as 
being part and parcel of a "well-deserved and respectable 
remuneration package" and promised to "fully support the 
ICSC,s recommendation." 
 
¶6. (U) JAPAN AND U.S. VOICE OPPOSITION WHILE EU, CANZ, 
MEXICO, AND RUSSIA ALL EXPRESS NEED TO MOVE CAUTIOUSLY: Both 
Japan and the U.S. spoke against introducing end-of-service 
severance pay, arguing that the proposal violated GA 
Resolution 63/250 and that the UN had no legal obligation to 
provide for staff members after the completion of a contract. 
Sweden, speaking on behalf of the E.U. and associated 
countries showed reluctance to endorse the new entitlement, 
commenting that "as for the recommended end-of-service 
severance pay for fixed-term staff, we will carefully examine 
this proposal and its administrative and financial 
implications in the light of the ongoing implementation of 
the contractual reform and the overall economic situation, 
bearing in mind that it is an entirely new concept." New 
Zealand, speaking on behalf of CANZ, urged caution in 
considering any new entitlements with long-term financial 
implications. Mexico said that it would need to examine the 
proposal "in the context of this economic crisis", but also 
suggested that the evidence for the proposal is not 
sufficiently convincing. Outside of the G77 and China, Russia 
came closest to endorsing the initiative, noting that the 
introduction of this entitlement should only be considered 
 
 
 
after "serious consideration" and its "introduction should be 
delayed." 
 
FOLLOW-UP DELIBERATIONS IN INFORMAL CONSULTATIONS 
--------------------------------------------- ---- 
 
¶7. (U) During subsequent informal meetings of the Fifth 
Committee on the Common System, the U.S., the EU, CANZ, and 
Japan have maintained a common position in opposition to the 
introduction of end-of-service severance pay for fixed-term 
staff, which continues to be supported by the G77 and China. 
In addition to arguing against the proposed entitlement on 
its merits, Western delegations have pointed out the 
difficulty of discussing severance pay for fixed-term staff 
without first discussing how a new continuing contract 
mechanism is implemented in the UN Secretariat. This issue is 
scheduled to be debated in November under agenda item 137, 
Human Resources Management. 
 
¶7. (U) COMMENT: The sum provided by the ICSC for the 
severance pay plan is based on the current fixed term staff 
remaining in the organization for ten years or more. These 
estimates do not take into consideration the conversion of 
fixed-term staff members in the UN Secretariat to continuing 
contracts. Implementation of the new continuing contract 
mechanism will reduce the number of staff eligible for 
end-of-service severance pay, and therefore reduce the annual 
cost of the entitlement. These savings, however, are likely 
to be offset by an increase in the number of termination 
indemnities -- which are more generous than end-of-service 
grants -- awarded to staff. END COMMENT 
Rice