TRIPARTITE GROUP ON HUMAN RESOURCES MANAGEMENT (COUNCIL RES. 1253) Document TGHRM/3 27 June 2006 English only PERMANENT CONTRACTS Position paper by the ITU Secretariat 1. At its 2002 session, the ITU Council adopted Resolution 1195 “Effective Human Resources Management in the Union” and approved the implementation of a new contracts policy providing for “the conversion of fixed-term appointments into permanent ones after four years of service, subject to satisfactory service on the part of the staff member concerned, continuity of work and funding”(emphasis added). The new contracts policy had been in effect since September 2002. 2. In addition, it was indicated during the 2002 Council session that it was expected that 50 to 60 per cent of the Union's staff would have permanent appointments and the remainder would have fixed-term or short-term contracts. 3. However, the proportion of permanent contracts rapidly reached that percentage because of the hiring restrictions introduced subsequent to the 2002 Plenipotentiary Conference. 114 permanent contracts were granted in accordance with the new contract policy of Resolution 1195, on the basis of the expiry date of the fixed-term contract. 4. This situation has resulted from the application of the new contracts policy and from the staff reduction plan implemented at the end of 2003 further to the decisions taken by the Plenipotentiary Conference (Marrakech, 2002) and by the Council at its ordinary and additional sessions in 2003. 5. In view of the large number of staff members eligible for permanent contracts, as well as of the difficult financial situation of the Union and uncertainty of the budgetary outlook for 20062007, the Secretary-General considered that he was not in position to continue to convert fixed-term contracts to permanent contracts and at the same time remain loyal to the true intention of Resolution 1195, which required that the conversions be subject to continuity of funding. 6. Furthermore, as the percentage of permanent contracts had already reached the envisaged estimate of 50-60%, the Secretary-General considered that the continued unrestricted and systematic conversion of fixed-term contracts into permanent appointments would have placed the Union in a very difficult situation since permanent contracts could have been granted without adequate assurance of continuity of funding. Therefore, pending the Council’s guidance on this matter, the Secretary-General decided to withhold the granting of any further Permanent appointments. 7. At its 2005 session Council concluded that the measures taken by the Secretary General were prudent and correct and decided that the situation would be re-examined at its 2006 session, in light of any decision taken by the UN General Assembly on the proposal elaborated by the International Civil Service Commission on new contractual arrangements to be applied by the UN -2- common system. However, the UNGA decided to defer to its resumed sixtieth session consideration of most of items submitted by the ICSC and has not yet examined the Report submitted by the ICSC. 8. The budgetary situation considerably reduced the room for manoeuvre of the SecretaryGeneral and a very high percentage of permanent contracts would mean that the Union loses flexibility when further restructuring is necessary and accentuates the inequitable situation among the staff because it is mainly the remaining small number of non-permanent staff that has to bear the burden. 9. To date 125 additional staff members1 would have reached four years of service and would therefore be considered for conversion of their fixed-term contract into a permanent appointment, subject to the conditions set out by Resolution 1195. 10. In conclusion, noting that due to the ILO Administrative Tribunal jurisprudence, there is little difference in job security for the holders of fixed-term and permanent contracts after reaching 5 years of contract and that the indemnities to be paid after 9 years of service are the same for all categories of staff (annex A), the Secretary-General recommends to continue to withhold the granting of any further Permanent appointments until the next General Assembly makes a decision on this subject. ___ ____________________ 1 29 of these staff members have lodged a complaint before the Administrative Tribunal of the International Labor Organization against the decision not to convert their fixed-term contract into a permanent contract. Judgements will be delivered in February 2007. -3- Annex A Regulation 9.6 Termination indemnity a) Staff members whose appointments are terminated on account of the abolition of their post or reduction of staff shall be paid an indemnity in accordance with the following schedule. Months of gross salary, less staff assessment, as applicable1) 2) Completed years of service 1) Permanent appointments Probationary appointments Temporary appointments for a fixed term exceeding six months Less than 1 1 2 3 4 5 not applicable not applicable 3 3 4 5 Nil 1 1 2 3 4 One week for each month of uncompleted service, subject to a minimum of six weeks' and a maximum of three months' indemnity pay 6 7 8 9 10 11 12 13 14 15 or more 6 7 8 9 9.5 10 10.5 11 11.5 12 5 6 7 9 9.5 10 10.5 11 11.5 12 3 5 7 9 9.5 10 10.5 11 11.5 12 For staff in the Professional and higher categories, the payment shall be calculated on the basis of the staff member's gross salary, less staff assessment according to the schedule of rates set forth in Part I of Annex 5 to these Regulations, as applicable. 2) For staff in the General Service category, the payment shall be calculated on the basis of the staff member's gross salary, including language allowance, if any, and non-resident's allowance, if applicable, less staff assessment according to the schedule of rates set forth in Part II of Annex 5 to these Regulations.