EU faces disruption unless staff pay-rise dispute settled

SWEDEN’S ROTATING presidency of the EU is making fresh efforts to settle a stand-off between EU governments and the European …

SWEDEN’S ROTATING presidency of the EU is making fresh efforts to settle a stand-off between EU governments and the European Commission over a disputed 3.7 per cent pay rise for 50,000 staff of the European institutions and newly elected MEPs.

Following a three-hour strike by staff in the European Council on Monday, unions plan further stoppages today and tomorrow.

With commission president José Manuel Barroso in Copenhagen for the UN climate change summit this week, the dispute could also disrupt preparations for confirmation hearings for the incoming commission team in the European Parliament next month.

The rise is due in January 1st and would be backdated for six months, according to rules which peg EU pay with civil service salaries. It also takes account of the cost of living in Brussels, home to many EU institutions.

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Legal advice, deemed solid even among EU governments, suggests the commission is obliged as employer to proceed with the increase. Still, many governments believe the EU can introduce the rise and immediately impose a levy on staff to claw back the benefit. Some also believe it may be possible to phase in the increase.

At an ambassadors’ meeting yesterday, however, Germany, Britain and Poland refused to back any plan that implemented the rise.