Court Case Correction Coefficient 2010
Today 21 March 2013, the Tribunal delivered the sentence of our F-111/11 case (available only in French).
In spite of all the efforts we did to straighten out the distorted 2010 correction coefficient, the Civil Service Tribunal rejected our appeal.
We will study carefully the long sentence with our lawyers, will assess what steps can be taken and we will come back to you shortly with more detailed information.
Note that the similar case F-112/11 (Dalmasso) on the same subject is also rejected.
Parliament pushes for change to the MFF
As you may know on Wednesday 13/3 the Parliament voted a resolution against the long-term budget 2014-2020 (MFF) as agreed during the last Council summit held in February (during our last R&D Cafè given on the same day - 13/3 - we gave this information "live"!)
The vote of last Wednesday does not imply that the whole MFF negotiations will have to start from scratch, it was only an intermediate step in the co-decision procedure. The Parliament will give or refuse its consent on the MFF in July 2013.
With the vote of last Wednesday, the Parliament expressed its concern about the following main points:
- a lack of transparency and respect of the EP role during the negotiations of February
- the need for flexibility in the budget between different items of expenditure
- the need for a mid-term review of the MFF, after the establishment of the new Commission and EP
- no roll-over of 2013 unpaid bills into the new MFF
The EP is clearly showing to the Council that its increased power given by the Treaty of Lisbon has to be taken into account. The fact that the EP is counterbalancing the Council is positive for the defense of the European project and the public service that makes it possible!
In this context the reform of the staff regulation is not expected to enter into force before Jan 2014 at least.
For more information on the vote of Wednesday we invite you to have a look at the Parliament press relase and the Commission press release.
We remind that you can find more information on the MFF and the reform on the R&D website.
Latest update on the reform
As you know, during the 2014-2020 Multiannual Financial Framework negotiations that took place early February, the European Council decided to cut the administrative spending by Euro 1.5 Billion. This comes on top of the Euro 1 Billion saving that the Commission proposed on a voluntary basis with the reform of the Staff Regulations tabled in December 2011 (see our previous message).
In order to find the extra 1.5 Billion saving, the Commission proposes to freeze the salaries and pensions of all the staff employed in the EU Institutions, agencies and other bodies over the next 2 years (2013 and 2014). This means that the provision of the method that expired on 31 December 2012 to align the evolution of EU staff remuneration and pensions to that of national civil servants will not be applied for 2 years, even when the method will be reinstated following the reform.
The exact amount of purchasing power loss will depend on the combination of inflation and the evolution of national civil servants salaries during the next two years, but we expect that it will roughly correspond to one echelon. The effects of this salary freeze will be felt even after the 2 year period and when one enters retirement. We are following this point very closely but it seems that there is little that can be done to counter this perspective, the pressure of the Council on this aspect is very intense and in any case 1.5 Billion must be found within the administrative spending. During this freeze period, it is probable that the correction coefficient will be updated annually as usual.Another proposed measure is much more controversial: the negotiations in their current state foresee the introduction of a new 6% “crisis levy” in parallel with the salary freeze. We can’t accept this levy in the absence of method or if the reinstated method substantially diverges from the old one. As negotiated during the last reform of 2004, the levy was introduced in exchange for a stable and well defined method: one goes with the other. Our position is that during any salary and pension freeze, no levy can be applied. DG HR was receptive to this argumentation and will take it into account when negotiating with the Council. One point anyway seems clear: the levy cannot be retroactively applied. We will not have to pay back what we should pay now were the solidarity not having expired at the end 2012.
In order to find the extra 1.5 Billion saving, the Commission proposes to freeze the salaries and pensions of all the staff employed in the EU Institutions, agencies and other bodies over the next 2 years (2013 and 2014). This means that the provision of the method that expired on 31 December 2012 to align the evolution of EU staff remuneration and pensions to that of national civil servants will not be applied for 2 years, even when the method will be reinstated following the reform.
The exact amount of purchasing power loss will depend on the combination of inflation and the evolution of national civil servants salaries during the next two years, but we expect that it will roughly correspond to one echelon. The effects of this salary freeze will be felt even after the 2 year period and when one enters retirement. We are following this point very closely but it seems that there is little that can be done to counter this perspective, the pressure of the Council on this aspect is very intense and in any case 1.5 Billion must be found within the administrative spending. During this freeze period, it is probable that the correction coefficient will be updated annually as usual.Another proposed measure is much more controversial: the negotiations in their current state foresee the introduction of a new 6% “crisis levy” in parallel with the salary freeze. We can’t accept this levy in the absence of method or if the reinstated method substantially diverges from the old one. As negotiated during the last reform of 2004, the levy was introduced in exchange for a stable and well defined method: one goes with the other. Our position is that during any salary and pension freeze, no levy can be applied. DG HR was receptive to this argumentation and will take it into account when negotiating with the Council. One point anyway seems clear: the levy cannot be retroactively applied. We will not have to pay back what we should pay now were the solidarity not having expired at the end 2012.
But there is even more!
The way the February Council conclusions are written is open to interpretation. Several members of the Council Status Working Group (with Austria as forerunner) wish to introduce in the new method after the 2 years freeze period a limitation in the salary evolution, until 2020 at least. It comprises a “dynamic cap” that consists in deducting 0.5 % from every annual salary adjustment, even if it results in a negative adjustment; and a “static cap” that limits any future positive annual salary adjustment to max. 2%.The Commission does not agree with this proposal that is not in line with the Council summit conclusions.
Since the Council summit, the Commission (DG HR) has met several times with the Council Status Working Group but discussions are difficult and the two parties don’t agree on how to implement the reform. Furthermore, the Status Working Group has no single common opinion and some of its members have a rather extreme position. The Commission requested to negotiate from now on at the COREPER level (the ambassadors of the Member States) and hopes that they will have a more realistic and reasonable approach.
The European Parliament will give its green or red light on the MFF proposal in June/early July. If the Parliament gives it OK, a trilogue will take place (Council-Commission-Parliament) to discuss the way forward to implement the MFF budget reduction, and it is thought that the Parliament will strengthen the Commission position against the Council.
To conclude, the negotiations on the reform are still in a very early stage and somewhat chaotic. Having reached an agreement for the MFF does not mean that everything is now clarified. A 2-year salaries and pension freeze seems unavoidable, but several Member States still want to attack the European public service even more.
In any case the reform won't entry into force before January 2014.
We must be very careful to defend our rights, and we need your continuing support!
R&D is here to defend your rights!
JSIS Online - Survey
As you may have already read last week,
the PMO has launched the new application "JSIS-online" through which
you'll be able to check the status of your claims for reimbursement and consult
your files (see broadcast sent on 25/02).
We really welcome this initiative and hope the problems
encountered by some of you will be solved soon. Nevertheless, we would like to
have your feedback regarding the new IT tool as well as any issues you may have
(or had) with the Joint Sickness Insurance Scheme. Please let us know if you
have undergone any kind of problem, such as for example late reimbursement,
refusals, prior authorisations, extremely penalising application of the new
parity coefficients, etc: please fill in the short anonymous
survey form at this address. We also want to hear from you if you
are happy with the service provided, in order that we can get a complete
picture - we really hope that all of our members will spend a couple of minutes
on this short survey. The deadline to respond is 15/3, and we plan to follow up
with a R&D Café to discuss the situation.
Further to the general information we are collecting in the
survey, we are of course happy to give you our support with any specific issues
you may have: please feel free to pass by at the Secretariat or to make an
appointment with our R&D colleagues if you wish. Your privacy will be
safeguarded at all times.
R&D café on Multiannual Financial Framework: 13/03/2013
We are pleased to confirm the previously announced R&D Café on the topic of the recently agreed MFF. As you will be aware, the agreed budget includes a further reduction to the administrative heading beyond that already proposed by the Commission. This will naturally reflect on the future administrative spending and the proposed "Reform" of the Staff Regulations.
On 7th March the "Groupe technique Rémuneration" (GTR) will meet and a discussion of the method for salary adaptation and other aspects of the reform are on the agenda. R&D will be present and we have decided it would be most useful to hold the R&D Café after this meeting so we can present the latest possible scenarios and listen to your views.
The R&D café will therefore take place on 13/03 at 13:00 in Room 3 (bld. 36). Please come along and share in the debate over a coffee!
On 7th March the "Groupe technique Rémuneration" (GTR) will meet and a discussion of the method for salary adaptation and other aspects of the reform are on the agenda. R&D will be present and we have decided it would be most useful to hold the R&D Café after this meeting so we can present the latest possible scenarios and listen to your views.
The R&D café will therefore take place on 13/03 at 13:00 in Room 3 (bld. 36). Please come along and share in the debate over a coffee!
Transfert of pension rights IN - Art. 90 templates
Templates to appeal against the retro-active application of the new rules applicable for transfers of pension adopted on 3rd March 2011 are now available.
A first case has been brought before the Court of Justice (Verile Case) and a series of others are suspended while awaiting the verdict which will be handed down in this "test" case.
The Verile case will be heard on 19th March.
Our lawyer Sébastien Orlandi will keep you up to date with progress, in an information session which will be held on 27thFebruary at 13.00 in the Central Staff Committee (CCP) Meeting Room.
A first case has been brought before the Court of Justice (Verile Case) and a series of others are suspended while awaiting the verdict which will be handed down in this "test" case.
The Verile case will be heard on 19th March.
Our lawyer Sébastien Orlandi will keep you up to date with progress, in an information session which will be held on 27thFebruary at 13.00 in the Central Staff Committee (CCP) Meeting Room.
R&D cafè: Multiannual Financial Framework
14/02/2013
Contract Agents
,
Correction Coefficient
,
Future of the JRC
,
Pay
,
Reform 2013
,
Staff Policy
During the recently concluded European summit (7/8 February 2013) the Council approved the Multiannual Financial Framework programme 2014-2020; the conclusions can be found at this link. Last Monday 11/2 the vice-president of the European Commission Mr Šefčovič discussed the MFF with the trade unions which gave us the possibility to understand better the Commission view of the programme. As regards Heading V (see pages 39/40 of the MFF conclusions) on the administrative expenditures (salaries, European Schools, etc.), a cut of €2,5 billion has been foreseen (€1 billion more than the Commission’s initial proposal) together with the confirmation of the already announced staff cut of 5% for the period 2013-2017. Furthermore, it has been proposed that no salary adaptation will be applied for the next 2 years, while it is not clear yet what it will happen to the solidarity levy. The European Parliament will now evaluate the Council proposal: it's up to the MEPs to decide whether to accept or reject it, but no amendments are possible.
Negotiations will be carried out in the coming weeks: if you want to know more or express your views please come to the R&D Cafè that we are going to organise by the end of February. Stay tuned!
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