CERN Accelerating science

Annex A1: cornerstone of the five-yearly review

As a reminder; the purpose of the five-yearly review is to review the financial and social conditions of all CERN personnel whether employed (MPE) or associated (MPA)!
In December 2015, the CERN Council approved the package proposed by the Management.
Early this year, and as final act of the 2015 five-yearly review, the CERN Council may decide, if necessary and appropriate, to review the procedures defined in Annex A1 and applicable to future five-yearly reviews. At the meeting of TREF (TRipartite Employment Forum) in early March 2016 discussions will take place between all stakeholders (representatives of Member States, Management and the Staff Association) and Council will take a decision in June 2016, on the basis of the Management's recommendations.
What does Annex A1 say and where can I find it?
Annex A1 (Article S V 1.02) is a part of the Staff Rules and Regulations (SRR: https://council.web.cern.ch/council/en/Governance/TREF-CERN_SRR_en_ed11-2016%20.pdf)
This annex defines:
- The five-yearly review of the financial and social conditions of the staff, fellows and MPA;
- The annual review of the basic salaries and stipends, but also of the subsistence allowances and family benefits.
The aim of the Five-yearly review is to ensure that the financial and social conditions offered by the Organization allow it to recruit and retain staff members of the highest competence and integrity coming from all Member States. Regarding fellows, the conditions must remain attractive compared to those offered by comparable research institutions; for the MPA’s the conditions must take into account the highest cost-of-living in the local region of the Organization.
Annex A1 also defines the procedure for carrying out the five-year reviews with the following steps:
- Identification of the main recruitment markets, a report on staff recruitment and retention, and a proposal identifying the financial and social conditions to be reviewed.
- The data collection partly entrusted to the Organization for Economic Cooperation and Development (OECD).
- The comparison of financial and social conditions.
- Management’s proposals, following an internal consultation process, in particular with the Staff Association, and the decision of the CERN Council.

In all cases, comparative studies requested by the CERN Council must include the salaries, which are compared with those amongst the most competitive (Flemming principle) for career paths AA to B, and with the most competitive (Noblemaire principle) for career paths C to G.
However, the results of the comparisons constitute only a guide for the Director-General to use in making his proposals, and for the Council in taking its decision relating to any adjustment of the financial and social conditions of staff members. Thus, no obligation exists for the Management and the Member States to partly or fully take into account the results of these comparative studies, as long as the attractiveness of the Organization and its ability to retain staff do not suffer.
Finally Annex A1 defines also the annual review of basic salaries and stipends. The calculation, according to an established formula, is based on data collected locally and in the Member states. Once more this year, the calculated cost variation index (CVI) turned out to be negative, so that, for the fifth consecutive year, no annual adjustment of the basic salaries took place.
Information concerning the tripartite discussions will be communicated as they evolve... Stay tuned, and for more information on these issues do not hesitate to discuss with your staff delegates

“The Noblemaire principle, which dates back to the days of the League of Nations and which the United Nations took over, embodies two rules. One is that, to keep the international civil service as one, its employees shall get equal pay for work of equal value, whatever their nationality or the salaries earned in their own country. The other rule is that in recruiting staff from their full membership international organisations shall offer pay that will draw and keep citizens of countries where salaries are highest.” (ILOAT Judgment 825)

“The purpose of the Flemming principle is to ensure that the pay of international civil servants matches the best conditions of service at the duty station […]. Its purpose is to ensure parity of pay between international civil servants in the General Service category and the best-paid local workers in comparable jobs.” (ILOAT Judgment 1641)