RESTRICTED
WORLD TRADE WT/GC/W/60
20June1997
ORGANIZATION(97-2495)
CONDITIONS OFSERVICE APPLICABLE TOTHE STAFF
OFTHE WTO SECRETARIAT
Draft Decision Proposed bytheChairman oftheWorking Group on
Conditions ofService Applicable totheStaffoftheWTO Secretariat
TheWTO General Council andICITO Executive Committee,
Noting thataWTO Secretariat shallbeestablished pursuant toArticle VIoftheAgreement
Establishing theWTO,
Considering theMarrakech Ministerial Decision onOrganizational andFinancial Consequences
Flowing from Implementation oftheAgreement Establishing theWTO,
Recalling thattheWTO isasuigeneris organization established outside theUnited Nations
system,
Recalling alsotheDecision adopted bytheGeneral Council atitsmeeting on7,8and
13November1996thattheGeneralCouncilshallin1997continueitsconsiderationoftheDraftDecision
of18September 1996, withaview toreaching afinalconclusion by30June1997, aswellasthe
decisionadoptedbytheGeneralCouncilon6March1997establishingtheWorkingGrouponConditions
ofService Applicable totheStaffoftheWTO Secretariat anddefining itsterms ofreference,
Recognizing theneedtoestablish theWTO Secretariat asanindependent entity,
Noting thattheestablishment ofanindependent WTO Secretariat willprovide aunique
opportunity, ontheonehand, tointroduce far-reaching personnel policy reforms withaviewtofurther
enhancing theefficiency, cost-effectiveness andcompetitivity oftheSecretariat and,ontheother hand,
toimprove thewell-being ofthestaff, ontheunderstanding thattheoverall conditions ofservice
applicable tothepresent staffshould benolessfavourable intheWTO Secretariat thanintheICITO
Secretariat,
Emphasising that,intheforeseeable future, thesystem ofconditions ofservice applicable to
thestaffoftheWTO Secretariat should notgiverisetoanyincrease inpersonnel costsinrealterms,WT/GC/W/60
Page2
1. Authorize ,without prejudice tothefinaldecision ontheconditions ofservice tobeapplied
tothestaffoftheWTO Secretariat, theDirector-General, inhiscapacity asExecutive Secretary of
theICITO, toinform theStanding Committee oftheUnited Nations JointStaffPension Board atits
180th Meeting oftheintention oftheGeneral Council/Executive Committee toapply under Article
16oftheRegulations oftheFund fortermination ofthemembership ofICITO intheFund on
31December 1997, withaviewtotheestablishment oftheWTO Secretariat on1January 1998, and
subject to:
(a) theapproval bytheGeneral Council intheautumn of1997ofStaffRegulations, StaffRules,
Pension PlanRegulations andappropriate transitional measures inaccordance withitsdecision
of6March 1997andtaking intoaccount theprogress sofarachieved bytheWorking Group
onConditions ofService Applicable totheStaffoftheWTO Secretariat, assummarized in
theattachment tothepresent Decision andnotably withrespect togreater staffaccountability
andamore precise correlation between remuneration, responsibility andperformance,
(b) theconclusion ofamutually satisfactory arrangement forthepayment totheWTO ofa
proportionate share oftheassets oftheUnited Nations Joint StaffPension Fund atthedate
oftermination ofICITO membership,
(c) thesubmission ofasecond opinion onthecalculations oftheWTO consulting actuary with
respect totheproposed Pension Planbyanactuary designated bytheChairman oftheGeneral
Council inconsultation withtheChairman oftheWorking Group onConditions ofService
Applicable totheStaffoftheWTO Secretariat, and
(d) presentation bytheDirector-General ofbudget estimates for1998thataredemonstrably cost-
neutral, taking intoaccount theabove regulatory framework andtheamount ofassets expected
toberecovered from theUnited Nations Joint StaffPension Fund,
2. Decide thattheconditions ofservice applicable tothestaffoftheWTO Secretariat shallbe
subject totriennial review fromthepointofviewofcostandconsistency withtheevolution ofpersonnel
policies incomparable intergovernmental organizations,
3. Further decide thattheWorking Group onConditions ofService Applicable totheStaffof
theWTO Secretariat shallcontinue itswork inaccordance withtheterms ofreference adopted on6
March 1997andsubmit itsfinalreport, together withthefinaldrafttextsoftheStaffRegulations and
Rules andPension PlanRegulations, totheGeneral Council by14November 1997.WT/GC/W/60
Page3COMPARISON OFMAIN ELEMENTS OF
CONDITIONS OFSERVICE
Common system Proposed system
1. Netsalary1
(a)ForProfessionals, scale expressed inUS$andsupplemented
bypostadjustment inUS$toreflect exchange rateandcost-of-
living differences between NewYork andGeneva. Converted
intoSFRatprevailing exchange rate.
(b)ForGeneral Service staff, scale expressed inSwiss francs.
Subject toannual adjustment according toGeneva CPI.1. Netsalary expressed inSwiss francs onaunified scale forall
staff. Subject toannual adjustment according toSwiss CPIto
theextent thatnational civilservice salaries offivemajor
contributors areadjusted except thatcumulative adjustment not
toexceed Swiss CPImovement.
2. Progression through thesalary scale1
Onthebasis ofquasi-automatic periodic annual orbiennial
salary increments.2. Progression through thesalary scale
Onthebasis ofthestaffmember 'sperformance, therateof
progression being determined bythevalue oftheservices
rendered.
3. Dependency allowances1
(a)ForProfessionals, allowance inrespect offirstprimary
dependant expressed asapercentage ofnetsalary +post
adjustment, increasing bygrade. Allowance inrespect ofother
primary dependants andsecondary dependant expressed asa
lump sumbased onpractice incommon system headquarters
locations.
(b)ForGeneral Service staff, spouse allowance, child allowance
andsecondary dependant 'sallowance expressed asalump sum
based onlocalpractice.3. Dependency allowances
Forallstaff, lump sumbased onlocalpractice.
1=coreconditionWT/GC/W/60
Page4Common system Proposed system
4. Language incentive1
(a)ForGeneral Service staff, pensionable lump sumbased on5
percentofminimum salary payable tobilingual secretary.
(b)ForProfessional staff, accelerated periodic salary
increments.4. Language incentive
None
5. Repatriation grant1
(a)Forinternationally-recruited General Service staff, based on
finalnetsalary +other pensionable elements, expressed asa
function offamily status andlength ofservice.
(b)Forexpatriate Professional staff, based onnetsalary
(without postadjustment), expressed asafunction offamily
status andlength ofservice.
Inbothcases, subject toevidence ofrelocation outside
Switzerland.5. Repatriation grant
None
6. Separation indemnity
None6. Separation indemnity
Payable toallstaffupon separation from service. Based onnet
salary andexpressed asafunction oflength ofservice and
family status.
7. Termination indemnity1
(a)ForGeneral Service staff, based onfinalnetsalary +other
pensionable elements, expressed asafunction ofcontractual
status andlength ofservice.
(b)ForProfessional staff, based onfinalnetsalary (without
postadjustment), expressed asafunction ofcontractual status
andlength ofservice.7. Termination indemnity
Forallstaff, based onfinalnetsalary, expressed asafunction
ofcontractual status andlength ofservice. Payable onlyinthe
event oftermination ofcontract.WT/GC/W/60
Page5Common system Proposed system
8. Rental subsidy1
Payable onadeclining scale tointernationally-recruited staff
during limited period following arrival. Expressed asafunction
ofnetsalary andmaximum rentvalues depending onfamily
size.8. Rental subsidy
Nochange
9. Education grant1
Payable toexpatriate staffinrespect ofchildren attending fee-
paying educational establishments. Maximum grant setat75per
centofmaximum admissible fees,expressed inlocalcurrency
withreference tofeesinmost frequently attended schools in
country concerned.9. Education grant
Nochange
10. Installation grant1
Payable tointernationally-recruited staff, equivalent to30days'
perdiem perstaffmember and15days'perdiem perprimary
dependant.10. Installation grant
Nochange
11. Home leave1
Granted toexpatriate staff+spouse anddependent children
onceevery twoyears. Payment ofreturn travel expenses by
most direct, economical means oftransport toplace ofhome
leave, plustravel time.11. Home leave
Nochange
12. Assignment grant1
Compensation payable tointernationally-recruited staffnot
eligible forreimbursement offullremoval expenses. Lump sum
corresponding toonemonth 'snetsalary (plus postadjustment if
applicable) plusmonthly grant expressed asafunction ofmid-
point ofProfessional salary range.12. Assignment grant
None
13. Travel andremoval expenses
Payable tointernationally-recruited staff.13. Travel andremoval expenses
Nochange
14. Annual leave
30working daysperyearofservice.14. Annual leave
NochangeWT/GC/W/60
Page6Common system Proposed system
15. Sickleave
63working daysonfullpayand63working daysonhalfpayin
anyperiod ofoneyearduring firstthree years ofservice.
195working daysonfullpayand195working daysonhalfpay
inanyperiod offourconsecutive years afterfirstthree years of
service.15. Sickleave
Nochange
16. Contracts
Allinitial appointments forafixed term. After fiveyears of
satisfactory service, staffbecome eligible forconsideration fora
permanent contract.16. Contracts
Allinitial appointments forafixed term. After fiveyears of
satisfactory service, staffperforming long-term functions become
eligible forconsideration foraregular contract.
17. Pensions1
(a)Pensionable remuneration
ForGeneral Service staff, derived from netsalary +
pensionable allowances inGeneva, grossed upusing universal
taxratescale.
ForProfessional staff, derived from netsalary +post
adjustment inNewYork, grossed upusing universal taxrate
scale andsubject tofurther upward adjustment fordetermination
ofbenefits payable inSwitzerland.17. Pensions
(a)Pensionable remuneration
Forallstaff, derived from netsalary inGeneva, grossed up
using Swiss taxrates.
(b)Benefit accumulation rate
Forstaffrecruited before 1.1.1983:
2%peryearofservice forfirst30years
1%peryearofservice fornext10years.
Forallother staff:
1.5% peryearofservice forfirst5years
1.75% peryearofservice fornext5years
2%peryearofservice fornext25years
1%peryearthereafter uptomax. 70%(b)Benefit accumulation rate
Forallstaff2%peryearofservice for35years.
(c)Contribution rate
Overall rateof23.7% shared on2:1basis between
Organization andstaff.(c)Contribution rate
Tobedefined, butsame sharing ratio.WT/GC/W/60
Page7Common system Proposed system
(d)Early retirement reduction factors
Earliest dateis5years prior tonormal retirement age(see(g)
below);
Forstaffwith<25 years'service, benefit reduced by6percent
peryearprior tonormal retirement.
Forstaffwith25-30 years'service, benefit reduced by2-3per
centperyear.
Forstaffwith>30 years'service, benefit reduced by1percent
peryear.(d)Early retirement reduction factors
Earliest datethesame.
Benefit reduced bysmaller of
1.5% points times 85-(age+length ofservice), and
3.0% points times years prior tonormal retirement
(e)Disability benefit
Projected normal retirement benefit atdateofseparation.(e)Disability benefit
Nochange
(f)Surviving spouse 'sbenefit
50%of(e)(f)Surviving spouse 'sbenefit
60%of(e)
(g)Normal retirement age
Forstaffrecruited before 1.1.90, 60
Forother staff, 62(g)Normal retirement age
Nochange, except allstaffwould haveoption tocontinue to62.
(h)Cost-of-living adjustments
Pensions adjusted whenever reference CPImoves by>3%.
Initial pensions adjusted ifcost-of-living incountry ofretirement
is>5% higher thaninSwitzerland.(h)Cost-of-living adjustments
Nochange.