Council 38/2009/D.16
Provisional Agenda item no. 16 – Greater Attendance of Associations at FAFICS Council Sessions
Introduction
In approving the Federation’s accounts for the year 2007, the 37th session of the FAFICS Council had “recognized that funding the travel costs and subsistence allowance of representatives from the Southern hemisphere would far exceed the resources of the Federation. That notwithstanding, in order to assess the magnitude of the costs involved, the incoming Treasurer and Secretary would prepare a table showing the cost of funding the travel and per diem of one representative per delegation coming from small associations.” (Extract of the session report, article 105).
The Treasurer and Secretary advised that their workloads of managing a Secretariat and Treasury for a constantly growing Federation would not permit them to devote the time necessary to complete such a major study.
The President solicited the assistance of AFPNU-Mexico, whose representative at the 37th session, President Johannes Wortel, had raised this matter. We are grateful to AFPNU-Mexico for having accepted this major outsourcing project and are pleased to submit the attached report for the Council’s attention.
Contents
Subject Page
The Study 2-5
Annex 1
Tables 1 and 2 of 5 6
Table 3 of 5 7
Table 4 and 5 of 5 8
Annex 2
Table 1 of 5 9
Table 2 of 5 10
Table 3 of 5 11
Table 4 of 5 12
Table 5 of 5 13
TRAVEL OF AFICS REPRESENTATIVES TO ANNUAL FAFICS COUNCIL MEETINGS
A Study prepared by AFPNU-Mexico
For many years FAFICS has convened annual seven day sessions of representatives from Associations of Former International Civil Servants (AFICS), hereinafter referred to as Member Associations. These meetings are scheduled immediately prior to annual meetings of the UN Joint Staff Pension Board at the same venues of the FAFICS meetings. The participants in these FAFICS meetings constitute the FAFICS Council, which deals with issues of common interest of all UNJSPF pensioners.
As at 31 December 2008, there were 42 Member Associations with a total of 16,686[*/] active members worldwide. The FAFICS Council also deals with non-pension related issues such as after service medical insurance, life insurance and long term care for incapacitated UN pensioners and their beneficiaries.
Participants in FAFICS Council meetings are usually the presidents or vice presidents of national Member Associations or other members designated by the respective executive committees. Travels to FAFICS Council meetings are usually to venues at major UN headquarters duty stations in locations such as New York, Geneva, Rome and Vienna, where large concentrations of pensioned UN staff reside of many UN Offices, Programs and Agencies. Representatives and alternate representatives of FAFICS are also participating in annual meetings of the UNJSP Board where they voice opinions on behalf of UN retirees.
At the last FAFICS Council Meeting in Rome it was noted that UN pensioners in some of the major UN duty stations and pensioners residing in many other countries were not represented. It appears that in many countries Member Associations with small memberships do not attend the Council meetings for economical reasons. Some representatives of Member Associations in the Rome sessions paid for their own travels, either in full or partially, since the high travel and daily subsistence allowance (DSA) costs were too heavy financial burdens for the limited budgets of many Associations.
The recorded memberships of the 42 FAFICS Member Associations consist of 28 small Member Associations with memberships of 150 and less - with a total of 1,856 members, and 14 larger Member Associations with more than 150 members and a total membership of 14,830 former UN staff and beneficiaries.
For the 38th session of the FAFICS Council in Vienna from 4 - 11 July 2009, the cost of one week travel of a representative from the 28 small Member Associations would exceed considerably the cost incurred by potential FAFICS Council participants from the 14 large Member Associations whose memberships reside at, or close to, large UN duty stations. The attached tables marked Annex 1, contain calculations of average travel and DSA costs for representatives of 31 Member Associations grouped into five regions as follows: Europe, North America ( Canada and the USA), Asia the Pacific Oceania and the Middle East, Latin America and Africa. No reliable travel cost quotations could be obtained for travel from 11 other locations where Member Associations are located.
Comparative estimates were made for one week attendances of FAFICS meetings in Vienna and London during July 2009. All travel was calculated on the basis of lowest quoted economy air fares and DSA levels for Vienna and London, which are US$ 297 and US$ 302, respectively. To determine whether air fare costs could be lowered significantly by scheduling FAFICS meetings in non-peak travel seasons, calculations were also included for travel in the months of May and October. As can be noted, the differences in the average costs as compared to those for the July 2009 FAFICS sessions, are small except for some itineraries in Asia, the Pacific, Latin America and the USA and Canada.
Examples:
(a) The average total travel cost per person from within Europe to Vienna is US$2,321, comprising of $242 for airfare and $2,079 for DSA (7 days at $297);
(b) from USA and Canada these costs are estimated at: US$3,523 - comprising of $1,444 for the airfare and $ 2,079 for DSA;
(c) from Asia, Pacific/Oceania and Middle East US$3,496 - $ 1,417 for airfare and $ 2,079 for DSA;
(d) from Latin America: US$3,697 - $1,618 for airfare and $2,079 for DSA, and
(e) from Africa: US$4,181 - $2,102 for airfare and $2,079 for DSA.
The cost differences for travellers from Asia, the Pacific/Oceania and the Middle East as compared to their colleagues from within Europe is 50% more, from the USA and Canada 52%, from Latin America 59% and from Africa 80%. Total estimated cost for attendance from 4 – 11 July 2009 of one representative from each of the 31 Member Associations listed in the country groupings is as follows in terms of US dollars:
Europe / US & Canada / Asia, Pacific, Oceania and Middle East / Latin America / Africa / Sub totals / %To Vienna
Airfare / 1,694 / 2,888 / 12,753 / 17,798 / 4,204 / 39,337 / 38
DSA / 14,553 / 4,158 / 18,711 / 22,869 / 4,158 / 64,449 / 62
TOTAL / 16,247 / 7,046 / 31,464 / 40,667 / 8,362 / 103,786
To London
Airfare / 1,862 / 1,750 / 11,556 / 15,906 / 3,756 / 34,830 / 35
DSA / 14,798 / 4,228 / 19,026 / 23,254 / 4,228 / 65,534 / 65
TOTAL / 16,660 / 5,978 / 30,582 / 39,160 / 7,984 / 100,364
To achieve increased attendance of representatives from the smaller Member Associations to the annual FAFICS sessions, AFPNU-Mexico requested in the 37th FAFICS meetings to include the subject of travel costs on the Agenda of the 38th FAFICS meetings. The present paper is submitted to the Council to find a more equitable solution than under the present system where representatives of small and less affluent Member Associations cannot finance attendances to FAFICS meetings from their limited budgets.
Travel costs differ in accordance with the venues of FAFICS meetings. But unless different dates and venues are considered for future periods of sessions, it is assumed that these annual meetings will continue to be scheduled at or near major UN headquarters duty stations and premises, and back-to-back with annual meetings of the UNJSPF Committee.
The FAFICS Council would be more representative of the UN retirees with the attendance of representatives from more of the existing Member Associations. This would also discontinue the present situation in which FAFICS has had - and would have to continue, to depend on the participation and attendance of only a limited number of Member Associations to bear the responsibility of dealing with matters which affect the global UN retiree community.
This matter is now included in the agenda of the 38th FAFICS Council, and it is recommended that the Council agrees to establish reasonable subsidies of travel costs for representatives of small Member Associations to FAFICS Council meetings. Such subsidies could be financed from the annual FAFICS resources - which may have to be increased, and could be limited to maximum percentages of costs or fixed amounts to be determined by the Council.
Travel subsistence allowance and suggestions for cost reductions
United Nations DSA rates are established at New York headquarters as a result of periodic surveys at all UN duty stations and locations in countries to which UN staff will undertake official travel. The DSA rates consist of the following three components: lodging (50%), meals (30%) and miscellaneous expenses (20%). These rates are applicable to good commercial lodging in business type hotels where UN travellers have secure and adequate facilities to work and meet with local counterparts and where basic meals, communications and service facilities are available.
Alternative No. 1
Ways and means were explored to reduce the United Nations DSA rates to be applied for travel to FAFICS meetings, without loosing out of sight the purpose of travel subsistence allowances and taking into account the often long travel hours caused by aircraft routings and other factors. The fact that no business class is used should also be considered for the provision of adequate lodging to recover from long flights and the crossing of time zones.
As a first alternative we could decrease the miscellaneous component of DSA from 20% to 5 % for travel to FAFICS meetings from all Member Associations. Where itineraries would involve intercontinental travel, i.e. between the countries of the five groups in Annex 1, we would propose that the Council agree, in principle, to subsidize DSA costs for one representative from each Member Association with up to 150 members, at the above mentioned decreased ad-hoc DSA rate and for one-half of the required attendance period.
For example, for a 7 days attendance to the FAFICS meetings in Vienna, this would amount to 3.5 days at US$ 252 per day, or US$ 884 for one person in each Member Association. For a similar attendance to a FAFICS meeting in London the reduced ad-hoc DSA rate would amount to US$ 257 per day, or US$899 for 3.5 days. Payment of the remaining 3.5 day portions of the DSA would continue to be the responsibility of the respective Member Associations. Assuming that all eligible Member Associations listed in the country groups in Annex 1 would despatch one representative, the amounts of subsidies for the meetings in Vienna and London would amount to US$ 15,912 and US$ 16,182, respectively.
In accordance with this proposal, the total cost for the Member Associations for travel to Vienna and London would be US$ 78,202 and US$ 74,355, respectively. This would amount to a decrease of 25 and 26 % as compared to the estimates of US$ 103,786 and US$100,364 mentioned above. However, it would also rely upon the above mentioned DSA subsidy payments from FAFICS resources. The decreased costs to the Member Associations and the proposed FAFICS subsidies to 18 eligible small Member Associations are reflected in Annex 2.
Alternative No. 2
We also explored a suggestion to use stipend rates for United Nations fellowship holders established in some UN duty stations to provide Fellows with austere lodging and meals for periods up to 4 or 5 months. The suggestion included an augmentation of US$ 50 of the daily stipends which would result in ad-hoc stipend rates of US$ 207 versus the US$297 full DSA rate for Vienna, and US$ 155 versus the US$302 full DSA rate for London. However, the concept of stipend payments differs considerably from that of DSA rates and often includes time consuming searches for adequate housing and sharing of facilities, for which there is no time when FAFICS meetings are convened.
Alternative No. 3
A third solution was suggested to make use of unoccupied hospices and other low cost facilities. Such facilities are not included in DSA surveys and might not satisfy the minimum lodging standards of the United Nations and/or the travellers to FAFICS meetings. Such facilities might not be available for all FAFICS participants on the same dates, and therefore, in our opinion, this alternative should not be established as a norm for lodging of travellers to FAFICS meetings.
Recommendation for AFICS/FAFICS travel subsistence allowance
It is recommended that the proposal in Alternative No.1, above, be approved for all official AFICS or FAFICS travel with a view to reduce all cost, but particularly to annual FAFICS meetings for representatives of small Member Associations in distant continents.
Airfare standards and costs, and suggestions for cost reductions
As far as we are aware, airfares for participants to FAFICS meetings have always been the most economical and direct flights obtainable, and subject to availability of the financial resources of the Member Associations concerned. With the emergence of low cost airlines it has become increasingly possible for Member Associations to attend FAFICS meetings at reasonable costs, particularly within Europe and through Internet bookings.
Intercontinental travel remains expensive but when arranged well in advance can be less costly after comparisons are made of alternative routings and airlines via Internet. Many travel service companies on the Internet provide quotations for flights alone, but also quote package proposals for flights and hotel lodgings, often at very considerable cost savings to travellers. It is recommended to make maximum use of combined air transportation/ lodging possibilities for FAFICS travellers, which, apart from lower costs, ensure timely and documented hotel reservations. Arrangements of this type will reduce travel expenditures and samples of flights only and package proposals, which include e-mailed quotations for hotels in many destinations, will be circulated at the Vienna meetings when this matter will be discussed.