Grantholders to CA scheme: latest news
Following a consultation meeting today 6/12/12 with the administration, there are some good and some bad news. Firstly, we have made some improvements to the earlier text and the administration has clearly stated its desire to move forward with the scheme. However, due to the outcome of a recent court case, EPSO will now be required to publish all future calls in all the official languages of the EU. Unfortunately, the translation necessary will lead to a delay (of uncertain length) in publication of the call, and it will definitely not be done by the end of 2012 as initially planned. 
Reform: latest news
It is clear that the reform will not be implemented on 1 January 2013. The discussions stalled at the Council, who has been unable so far to reach a common position. No progress so far.
These are the main points:
These are the main points:
· The salaries and correction coefficients have to be reviewed annually as per Art. 64 and 65 of the Staff Regulations.
Art. 64 and 65 refer to the Annex XI of the Staff Regulations which details how the annual salary and correction coefficient adjustments must be calculated. This is the so-called “Method”.
However, the Annex XI of the Staff Regulations will become obsolete after 31 December 2012.
In absence of any Method, it is possible that the Council will deny any salary adjustment in 2013.
Art. 64 and 65 refer to the Annex XI of the Staff Regulations which details how the annual salary and correction coefficient adjustments must be calculated. This is the so-called “Method”.
However, the Annex XI of the Staff Regulations will become obsolete after 31 December 2012.
In absence of any Method, it is possible that the Council will deny any salary adjustment in 2013.
· Article 66a of the Staff Regulations will also expire after 31 December 2012.
As this Article 66a is the legal basis for applying the 5,5 % “special levy”, such levy will not be collected anymore.
The fear is that the media and some politics exploit this fact and highlight that “the eurocrats have got a pay rise of 5,5 % in spite of those difficult times”.
Knowing that the Council will resume the negotiations on the Multiannual Financial Framework 2014-2020 on February 7 and 8, and that those negotiations are also critical for the reform of the Staff Regulations, any additional political tension can have very negative effects.
As this Article 66a is the legal basis for applying the 5,5 % “special levy”, such levy will not be collected anymore.
The fear is that the media and some politics exploit this fact and highlight that “the eurocrats have got a pay rise of 5,5 % in spite of those difficult times”.
Knowing that the Council will resume the negotiations on the Multiannual Financial Framework 2014-2020 on February 7 and 8, and that those negotiations are also critical for the reform of the Staff Regulations, any additional political tension can have very negative effects.
In an attempt to defuse the bomb, Vice-President Sefcovic made a proposal to the Council and the Parliament on November 30th to extend the validity of the current Method and special levy for another year in order to avoid a gap (Blue network – Green Network).
On December 5 in COREPER, Member States refused the Commission proposal. Some Member States were in favour of extending the levy but not the method, but this was refused by the Commission, with the support of other Member States.
This of course wouldn’t have been acceptable as the deal agreed in 2004 was to introduce the special levy in exchange of a well-defined Method for adjusting salaries!
Anyway, the Commission has shown its good will and made every effort to avoid the unintentional salary rise.
The Commission fulfills it role of the guardian of the Treaties and the strict application of the rules. This is also in the interest of the staff.
The European Parliament is supporting the Commission. See the letter Mrs. Dagmar Roth-Behrendt of December 6th by which she strongly criticizes the attitude of some Member States!
Anyway, the Commission has shown its good will and made every effort to avoid the unintentional salary rise.
The Commission fulfills it role of the guardian of the Treaties and the strict application of the rules. This is also in the interest of the staff.
The European Parliament is supporting the Commission. See the letter Mrs. Dagmar Roth-Behrendt of December 6th by which she strongly criticizes the attitude of some Member States!
MEP Dagmar Roth-Behrendt is the European Parliament rapporteur on the revision of the Staff Regulations. Thanks to recent changes of the Treaties (Treaty of Lisbon), the Parliament and the Council have equal power. This better balances the excessive behavior of some components of the Council.
Conclusion:
· From January 2013 on and until the Staff Regulations are revised, our salaries will not be subject to the 5,5% special levy anymore
· As for 2011, there will probably be no salary and correction coefficient adaptation 2012
· Risk that the future 2013 adaptation follow the same destiny
· The blockage comes from the Council (some Member States), not the Commission
· No indication can be given about when the reform could be adoptedNew developments may happen at any time and affect the conclusions mentioned above.
Correction coefficient 2012 and annual salary adaptation
It has been set to 93,4 %, which is an increase of 1,5 points in relation to the last (but never applied) figure for 2011: 91,9 %. As a reminder, the 2010 figure (which is still in force) is 92,3 %.
This change in Correction Coefficient comes together with a 2012 salary adaptation of +1,7 %. As a reminder, the 2011 figure (never applied) was also + 1,7%.
The 2012 pension contribution rate also comes down from 11,6 % to 10,6 %. As a reminder, the 2011 figure (never applied) should have been 11%.
All those new values should be applied retroactively on 1 July 2012, however it is highly probable that the Council reject them as it did in 2011.
The Commission took the Council to Court for non-application of the 2011 adjustments. We hope that the Commission will again lodge a legal action if the Council refuses to apply the 2012 adjustments.
Legal case against correction coefficient 2010
R&D Ispra has always been the leading force for this dossier.
The hearing took place at the Civil Service Tribunal in Luxemburg on 27 november 2012.
Our lawyers Maître Louis, Orlandi and Abreu Caldas attended the hearing. A member of R&D Ispra was also present.
Here are the main elements emerging from the hearing:
Our lawyers highlighted again the inconsistencies we identified in the fields of energy price and health costs, rent prices and inflation data. They reported the lack of transparence of Eurostat, despite our numerous requests among others during GTR meetings (Groupe Technique Rémunération is a discussion forum between DG HR – Eurostat and the OSP) specially dedicated to remuneration subjects. They also disputed the lack of right to an effective recourse arising from the impossibility to verify the calculation of Eurostat.
The lawyer of the Commission stressed the fact that it is necessary to prove the existence of an obvious error in the Eurostat calculation, and the order of magnitude of the error should be such that the Correction Coefficient value is affected. He claims that the burden of proof rests with the applicants. This is of course practically impossible as we have no access to the detailed data! Furthermore, he stated that the Administration has a wide discretionary power, that the Correction Coefficient aims to ensure a substantial equality of treatment between official of different locations, and that “it is not a domain where an exact science reigns” (sic), etc, etc…
The President of the Tribunal mainly heard the lawyers and asked a few questions to both parties. We can’t say that his questions aimed to strengthen our position.
The hearing lasted circa 1h 30’, without any indication about its outcome. The judgment will be pronounced within 3 to 6 months.
We can say that we did every effort to prove there are inconsistencies in the Correction Coefficient 2010, and it was absolutely no easy task considering the lack of information.
The outcome will really depend on the value given by the Judge Rapporteur to the elements we reported, and if he considers that Eurostat breached the rules by denying access to requested data.
We will organize a meeting on this subject between the lawyers and the Ispra staff in January.
Subscribe to:
Posts
(
Atom
)
No comments :
Post a Comment