INFORMATION SESSION ON THE PROPOSED PAY CUT 10 may 2017 Room IX 1 – 2.30 p.m.

AGENDA OF THE MEETING → Proposed pay cut (15 minutes) → What has already been done? (15 minutes) → Which kind of action can be taken in the future? (15 minutes) → General Discussion (45 minutes)

I – Proposed pay cut → How is my salary calculated I – Proposed pay cut → How is my salary calculated? → What is the basis for the proposed pay cut? → How will it affect us? → How and when will it be implemented? → Arguments against the pay cut?

How is my salary calculated? Post Adjustment (variable portion of the salary) (purcentage of the base salary calculated with a multiplier) current multiplier: 79 Base salary Decided by the ICSC based on the cost-of living survey in each duty station (every 5 years)

What is the basis of the proposed pay cut What is the basis of the proposed pay cut? Result of the cost-of-living survey (oct. 2016) → Determines the Post-Adjustment Index (PAI) → The PAI is the basis to calculate the Post Adjustment Multiplier (PAM) Components of the 2016 PAI • In Area expenditures (excluding housing) • Out - of – Area expenditures • Housing • Pension • Medical Insurance

Proposed PAI after the cost-of living survey. • from 172. 4 to 165 Proposed PAI after the cost-of living survey? • from 172.4 to 165.9 = -3.8% (as notified to advisory committee in Feb 17) Indices and weights the main components of the PAI index for Geneva (base New York)   2010 2016 PAI Component Weight (%) Index 2016-2010 Index In-area excluding housing 38.62 131.30 41.46 110.90 -20.40 Housing 26.05 108.34 25.41 95.76 -12.58 Pension contribution 8.28 100.00 8.24 0.00 Medical insurance 4.35 63.02 4.89 57.24 -5.78 Out-of-area 22.70 98.27 20.00 101.21 2.94 TOTAL 112.27 101.73

The 2016 Cost- of-Living Survey determines the new PAI from 172.4 to 165.9 New PAI= - 3,8% New PAI= 165.9 165.9 100 = new PAM 65.9 AM From current PAM: 79.3 To proposed PAM: 65.9 Difference: -7.5% of the Salary

Basis of the proposed pay cut – explanations by ICSC Results a ‘true reflection’ of the cost of living of staff relative to New York Local survey committees and advisory committee provided ‘independent oversight’ Possible to have local inflation but decrease in PAI due to greater inflation in New York Some ‘necessary and appropriate’ changes had been made to methodology – which improved ‘accuracy and transparency’

How it will affect us?

How it will affect us ? → Loss of almost one month salary per year → Equivalent reduction in dependant allowances → Reduction in the SHIF contributions How and when will it be Implemented? → Implementation suspended until further information provided concerning the methodology used to calculate the Post-Adjustment Index (PAI).

Arguments against the pay cut ? Political arguments Technical arguments • Staff are central to the organization and cutting working conditions will undermine its mission • Livelihoods of staff and their families would be dramatically affected and short implementation period is unfair • Pay and other conditions declining at the same time (Compensation Package)   • Cost of living higher than suggested • Purchasing power unbalanced by 2010-2015 salary freeze in New York • Geneva has longer working hours • Pay reduction mitigation measure removed in 2015 • Survey on NY only on one side and on Geneva and “France voisine” on the other side, why ?

II – What has already been done? Staff Union Administration Coordination with CCISUA, we : Launched the 7.5 % campaign at UN level Organized an information session and adopted a resolution Sent letters to the ICSC and heads of agencies Organized a rally Met the UN Secretary General to convey concerns Coordination with the heads of agencies Met with the ICSC members in Geneva Sent letters to the ICSC to request information on the methodology used Warned ICSC of the impact on sustainability of the UN system Postponed the implementation Recalling the NobleMaire Principle (US salaries are not the reference)

III – What other kinds of action can be taken in the future III – What other kinds of action can be taken in the future? → Rallies to Maintain public pressure, in advance of July ICSC Meeting → Petitions, posters and media stunts → Flash mobbing → Work stoppages If no answer : → Individual legal actions (technically supported by the Staff Union)

IV – General Discussion → What questions do you have for the Staff Union and our technical experts? → What action are you prepared to take? → What should be our strategy going forward?