Brussels, 01/07/2013 (Agence Europe) - On Friday 28 June, member states' representatives to the EU (Coreper) approved a draft regulation amending European officials' terms and conditions (see EUROPE 10876).
The reform may be formally adopted by the European Parliament on Wednesday 3 July (sources say the Council of Ministers will endorse it after the summer break), thus making savings that the European Commission suggests will be to the order of €2.7 billion by 2020 (€1.5 billion of which due to a two-year pay freeze and €900 million due to a cut in staff numbers) and €1.5 billion a year in the longer-run.
The changes were endorsed amid great social tensionin the European institutions, particularly the Council of Ministers. Felix Geradon, Deputy General Secretary of Union Syndicale in Brussels, told this newsletter that, after the strike last week, the trade unions would now suspend their action, adding that, in the final phase of the conflict, they had realised that there was a big problem with social dialogue now that the Lisbon Treaty is in force. The chair of Coreper expressed concern about this problem on Friday, as did the president of the EP, Martin Schulz. Geradon said it was hoped to take advantage of this period to put something in placefor the next time to ensure respect of the staff consultation rules. The trade unions expect talks to be arranged for the autumn.
The main changes to officials' terms and conditions are: - a two-year freeze of pay and pensions; - a 5% cut in staff numbers in all EU institutions from 2013 to 2017 (2,500 fewer jobs); - an increase in the minimum working week from 37.5 to 40 hours in all the institutions without any financial compensation; - the retirement age will increase from 63 to 66 for new staff and to 65 for existing staff (it will be made easier to continue working until the age of 70 and a new connection will be made between life expectancy and the retirement age) ; - a new “solidarity levy” of 6% will be introduced on 1 January 2014 (the previous one was 5.5%) - this is in top of the current taxes, which can be as high as 45% (on the highest income bands) - and, for the two highest grades of officials, and commissioners, the solidarity levy will be 7%; - the pension accrual rate for new staff will be reduced from 1.9% to 1.8% and early retirement without loss of acquired pension rights will be abolished; - lower end-of-career salaries (-22%) for a large number of administrators and assistants due to a stronger link between grade and responsibility, with careers not progressing beyond A2D12 and AST9 for the highest levels of management; - a new category for secretaries (with a 13% reduction in pay at start of career and up to a 40% cut at the end of working life); - a new and simplified method for adjusting salaries and pensions based on the political decisions taken by 11 member states for their national civil servants (compared with 8 member states at present), while catering for situations of deep economic and financial crisis by freezing or increasing salary late in line with the reduction in GDP in the member states; - a reduction in the maximum number of leave days granted to staff for their annual trip to their home countries from six days to two and a half, with the allowance reduced; - the possibility for more extensive use of cheaper contract staff, by extending the maximum duration of contracts from three years to six. (LC/transl.fl)