FIFTH COMMITTEE APPROVES DECISION SETTING NEW

C O N F I D E N T I A L USUN NEW YORK 000294 SIPDIS SIPDIS E.O. 12958: DECL: 04/02/2013 TAGS: AORC UUNR UNGA SUBJECT: FIFTH COMMITTEE APPROVES DECISION SETTING NEW SALARY FOR ICJ, ICTY AND ICTR JUDGES REF: A. IO-USUN 03/27/08 E-MAIL ¶B. USUN 232 ¶C. SECSTATE 30035 ¶1. (U) Members of the Fifth Committee (Administrative and budgetary),including USUN as instructed (ref a),formally approved a decision March 28 (full text - see para 10) to set the annual net base salary of members of the International Court of Justice (ICJ) and judges and ad litem judges of the International Tribunal for the Former Yugoslavia (ICTY) and International Criminal Court for Rwanda (ICTR) at 158,000 United States dollars plus corresponding post adjustment. The General Assembly is expected to adopt this decision sometime during the week of March 31. The Fifth Committee also approved the recommendations of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) to retain the existing standards of travel for ICJ judges and to maintain the current level of assignment grants afforded ICJ judges. However, Fifth Committee members did not take action on possible changes to the retirement benefits provided to ICJ members, pending the Committee's review, expected in May, of a Secretary-General's report on pensions. ¶2. (U) The Fifth Committee approved the draft decision on judges' salaries March 28, following several lengthy and, at times, contentious discussions concerning remuneration for ICJ, ICTY and ICTR judges. The respective registrars of the three courts appeared several times before the Fifth Committee to answer Member States' questions regarding conditions of service for judges and to advocate paying the judges 170,500 USD per year as previously approved in 2005 by the General Assembly. Select members of the EU, in particular Germany, countered that the GA had revised the salary level for judges in resolution 61/262, bringing such payments in line with the common system by setting annual remuneration per judge at 133,500 USD plus post adjustment. However, taking into account the concerns expressed by the ICJ that proceeding with the salary changes approved in resolution 61/262 would create inequities among the judges, in purported contravention of the ICJ Statute as claimed by ICJ members, the German representative, along with discussion coordinator Tomas Micanek (Czech Republic) and representatives of Japan and some G-77 members, met informally with ICJ Registrar Philippe Couvreur March 14 outside of the Fifth Committee to consider a possible compromise plan based on the following elements: -- in the future, a salary system for ICJ, ICTY and ICTR judges will consist of a baseline plus post adjustment as authorized by the General Assembly in resolution 61/262; -- the judges' salary of 133,500 U.S. dollars called for in resolution 61/262 will be revised to a total figure approximating 165,000 Euros (base salary plus post adjustment),but the formula of baseline salary plus post adjustment previously approved by the GA in 61/262 will be maintained; -- judges already serving on the courts would receive a one-time compensation payment (lump sum) to balance their reduced salaries. No specific figure was cited as to the amount of the one-time payment. ¶3. (SBU) In subsequent Fifth Committee discussions, Argentina, on behalf of the G-77, said G-77 members supported the notion of equality of salaries for all judges, new and old alike. Second, as per the ICJ Statute, Argentina said that G-77 members felt there could be no decrease in the salaries of currently serving judges. Third, given the GA's recent experience with Resolution 61/262, the General Assembly should not act if the ICJ judges oppose the Fifth Committee's views. Singapore asserted that the G-77 would not support any arrangement other than full equality among all the judges. ¶4. (SBU) USUN/MR said the U.S. endorsed bringing the judges' salaries in general conformity with the common system approach as decided by the GA in Resolution 61/262 - namely, a base salary plus post adjustment. USUN/MR indicated that the U.S. agreed with those who felt we should not get into the legal issues concerning equality of salaries for judges. The principal matter before the Fifth Committee was a policy one of how much the judges should be paid. USUN/MR also noted that the proposal discussed with the ICJ Registrar, however tentative it might be, to pay the judges a "one-time lump sum" raised concerns that merited further discussion among Fifth Committee members. The proposed salary amount of 155,000-158,000 U.S. dollars per judge also was a matter for further Committee consideration, both in view of the 133,000 USD level adopted in 61/262 and in view of the salaries paid to under secretaries-general. ¶5. (SBU) With time in the Fifth Committee's first resumed session running out, G-77 members modified their negotiating position and accepted the proposed compromise salary figure of 158,000 USD for the judges plus post adjustment, but NO lump-sum payment. EU members as well as Japan and members of the CANZ (Canada, Australia, New Zealand) also committed to proceed with this approach as the only viable way forward, since ICJ Registrar Couvreur subsequently advised the Fifth Committee that the ICJ judges would be willing to accept this proposal. Consistent with guidance to keep salary levels in the general range of that set in 61/262 and with a view that the salary of the next highest paid official in the Organization is set at 164,000 USD (i.e., the administrator for UNDP, just behind the D/SYG and SYG),the U.S. joined consensus and agreed to support the compromise language contained in the draft decision that was formally approved by the Fifth Committee on March 28. RETENTION INCENTIVES -------------- ¶6. (U) The respective Chiefs of Administration of ICTY and ICTR were present for the Fifth Committee's informal consultations on the proposals as outlined in the SYG's Report (A/62/681) to offer incentives to retain the services of ICTY and ICTR personnel as each tribunal moves closer to completing its mandated tasks. Member States were in agreement on the importance of encouraging both tribunals to offer their respective staffs non-monetary incentives to remain with the Courts as long as possible. ICTY's Chief of Administration noted that both of the tribunals already were implementing measures, such as in-house training workshops, permission to seek short-term assignments with other UN bodies, and assistance in securing onward assignments, that were designed to ease the concerns of tribunal personnel regarding their employment opportunities once the tribunals complete their work. ¶7. (U) Views among Member States regarding the offer of financial incentives to retain tribunal staff varied. G-77 members, as articulated by Argentina, expressed support for the proposal contained in the Secretary-General's report to offer tribunal employees one month's additional salary for every full year worked. Although the SYG report capped such additional payments at 5 months' salary, even for those who had worked for the tribunals more than five years, Argentina said the G-77 supported the notion of offering long-serving employees up to 10 months' salary as a retention incentive. Germany, on behalf of the European Union, sought information concerning the cost of extending contracts for current personnel to the end of each tribunal's mandate, rather than pay one month's salary for each year worked. By contrast, both Japan and Russia opposed payment of any financial incentives, since, as Russia pointed out, such incentives were not a part of the common system. Japan reiterated its support for non-monetary incentives, but ruled out bonus payments as proposed in the SYG's report. In light of continued disagreement among delegations, the Fifth Committee took no action on the SYG's proposal to offer tribunal personnel retention incentives. JUDGES' PENSIONS -------------- ¶8. (U) Concerning possible modification of existing retirement benefits for ICJ, ICTY and ICTR judges, Sandra Haji-Ahmed, Officer-in-Charge of Human Resources Management, advised the Fifth Committee that the Secretariat was poised to hire a consulting firm (Mercer) to study possible options pension schemes, which will be reported to the Committee during its second resumed session in May. Fifth Committee members therefore decided to defer consideration of this matter until May. COMMENT -------------- ¶9. (C) The decision brings the approach to determining the salaries of ICJ judges generally into line with the common system (i.e., salary plus post adjustment),to be adjusted on a regular and objective basis as with other participants in the common system. This approach avoids the sui generis approach to these matters previously followed. It also should obviate the practice of the Chief Judge and other judges on the ICJ from lobbying Member States on these issues. This practice has been criticized by Member States because of the apparent conflict of interest of judges lobbying Member States that are or may be appearing in cases or matters before the Court, although Member States were reluctant to raise this issue publicly. It was felt that the matter of salaries of the judges should be left to the SYG, the Controller and the Secretariat to address with the GA in a regular manner, with the Chief Judge participating only in a formal manner in presentations to the Committee. Having resolved the issue of salaries, this conflict of interest concern should not again arise in that context. However, there is a risk that this issue of apparent conflict may arise in connection with the outstanding issue of pensions. USUN urges the Department to consider how to deal with the issue if it does arise in that or other contexts. End comment. ¶10. (U) TEXT OF DRAFT DECISION APPROVED MARCH 28 BY THE FIFTH COMMITTEE: Begin text: Draft Decision Submitted by the Vice-Chairman following Informal Consultations The General Assembly, having considered the report of the Secretary-General (A/62/538 and Add. I) and the related SIPDIS report of the Advisory Committee on Administrative and Budgetary Questions (A/62/7/Add.36): a) endorses the conclusions and recommendations of the Advisory Committee on Administrative and Budgetary Questions as contained in paragraphs 8 and 9 of its report; b) Decides to set, effective 1 April 2008, the annual net base salary of the members of the International Court of Justice and judges and ad litem judges of the International Tribunal for the Former Yugoslavia and the International Criminal Tribunal for Rwanda at 158,000 United States dollars, with a corresponding post adjustment multiplier equal to 1 per cent of the net base salary, to which would be applied the post adjustment multiplier for the Netherlands or the United Republic of Tanzania, as appropriate, taking into account the adjustment mechanism as proposed by the Secretary-General in paragraph 77 of his report; SIPDIS c) recalls paragraph 11 of its resolution 61/262 of 4 April 2007, and decides to revert to the issue of the pension scheme during the second part of its resumed sixty-second session. End text. KHALILZAD