US embassy cable - 04THEHAGUE1687

UNCLAS SECTION 01 OF 03 THE HAGUE 001687 
 
SIPDIS 
 
FOR HR/OE/CMD - SALLY CINTRON 
ALSO FOR EUR/EX/PMO - JOHN HIGI 
FRANKFURT FOR RSC/HR 
 
E.O. 12958:N/A 
TAGS: AFSN, AMGT, KSEP, KICA 
SUBJECT: LES: CY 2005 COMPENSATION QUESTIONNAIRE 
 
REF: STATE 093410 
 
1. Summary. This is Post's response to compensation 
questionnaire requested in ref telegram.  The answers are 
keyed to questions from paragraph two to five.  This cable 
is cleared by all Agencies with locally engaged staff. End 
Summary. 
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2. Questionnaire 
A.   Desired Labor Market Position 
 
A1.For posts that use Watson Wyatt or other similar market 
position based commercial data for wage setting purposes: 
 
What is post management's desired market position percentile 
for each grade level? 
 
Post's desired labor market position for FSN compensation is 
at the 75th percentile for all grades.  While Post is fully 
aware that it is very difficult to reach the desired level, 
it believes that bringing the salaries to a competitive 
position in the labor market will ensure continued ability 
to attract and retain qualified LE staff.  Unfortunately, 
even our most recent wage increases, implemented on May 16, 
2004, bring post's overall average market position to the 
62nd percentile only. 
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A2.  N/A 
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A3.  N/A 
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A4.  Does Post need any new upward or downward Exception 
Rate Ranges? 
 
Post intends to request upward Exception Rate Range for job 
series 1800, particularly grades 9-11.  A separate cable 
will be forwarded. 
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B.  Recruitment/Retention Needs. 
 
B1. Did post receive an adequate number of qualified outside 
applicants to fill vacancies in CY 03? 
 
a) Yes 
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B2. Please provide a summary of the type of job and job 
applicant reasons for refusing offers of employment. 
 
 
d) One offer was declined by our first choice for the 
position of Computer Management Assistant because subject 
enjoys a 35% Dutch tax rebate under the Expatriates tax 
ruling.  Two years ago, same offer was rejected for this 
reason. 
 
One of the required qualifications is that a person must 
have worked for a multinational for at least two and a half 
years, and is assigned to the Netherlands because of job 
rotation.  To qualify, the employee must have special 
expertise, scarce on the Dutch labor market, and the 
following criteria are decisive for determining scarcity: 
--the required education 
--the required experience 
--the level of the Dutch salary vs that for the same job in 
the expatriate's country of origin. 
 
The Embassy while not falling under the normal multinational 
business platform, does however, encounter the same problem 
as any other employers in the Netherlands. 
 
We have contacted the local tax office and have been given a 
contact to approach at the Ministry of Finance to qualify as 
potential employer with the same kind of needs.  All three 
incumbents of positions in the ISC unit are non-Dutch 
citizens.  All three could, in principle, qualify for this 
privilege. 
 
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B3. Is the salary range shown on vacancy announcements? 
 
No. It is not prevailing practice to list salary ranges in 
job advertisements.  Post, however, has an open policy to 
provide compensation information to any potential applicant. 
During job interviews, we routinely discuss all aspects of 
compensation, including basic salary. 
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B4.  How many employees separated from post employment 
during CY 2003? 
 
A total of 8 employees. 
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B5. Count employees only once under one of the following 
categories or reasons for leaving so that the summary (h) 
equals total number separated.  Do not count employees 
leaving one Embassy position for another, even if to another 
USG agency. 
a) obtain better employment (more senior position, better 
advancement possibilities, better training, better working 
conditions, better location) 
b) obtain better salary (in a position with roughly the same 
responsibilities).  Please list employee's former position/ 
grade and available information on the employee's new 
position and employer. 
c) RIF 
d) retirement and separation for age, whether voluntary or 
involuntary 
e) employee separated for cause or employee resigned in lieu 
of 
f) personal reason (family, relocation) 
g) other (death) 
h) total no. of separation (the total of a) through g) 
 
 
a) none 
b) 1 employee, a former Surveillance Guard, resigned to take 
up better employment with an International Organization 
where he also enjoys a tax free salary. 
c) none 
d) 1 retired, optionally, under CSR 
e) 5 : 1 for breach of the code of ethics, 1 during 
probationary for performance related reasons, 1 resigned 
knowing he could be terminated if he does not improve in his 
performance and behavior, 2 did not get their first 
employment contract (personal services agreement) extended 
for a second year due. 
f) personal reason: 1 resigned to return to the U.S. 
g) other: none 
h) total number of separation: 8 
 
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B.   Current Staffing 
 
C1. Total number of employees of all USG agencies paid under 
the Local Compensation Plan, listed by grade level: 
 
FSN-12:  0 
FSN-11:  4 
FSN-10: 11 
FSN-9:   8 
FSN-8:  14 
FSN-7:  19 
FSN-6:  15 
FSN-5:   4 
FSN-4:  32 
FSN-3:   3 
FSN-2:   0 
Total: 110 
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C2. Average step rate of employees by grade: 
 
FSN-12:  0 
FSN-11:  9 
FSN-10:  8 
FSN-9:  10 
FSN-8:   8 
FSN-7:   9 
FSN-6:   6 
FSN-5:   5 
FSN-4:   7 
FSN-3:   4 
FSN-2:   0 
Overall average: 8 
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D. Host Country Unemployment 
 
D1. Is host country employment 
 
a)moderate, or 
b)high, or 
c)low? 
 
a) Moderate.  Unemployment rate is moderately high, ranging 
from 6.5 to 7 percent this year.  This figure rose from last 
year's rate of 5.3 percent.  With a stagnant economy, there 
were many layoffs in seasonal employment, such as in the 
construction, painting, service and agricultural sectors. 
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D2. Show job category where unemployment is high: 
(list as many as apply): 
a) blue collar 
b) clerical 
c) technical/professional 
d) all of the above 
 
a) Blue collar.  Unemployment is particularly high amongst 
unskilled blue collar workers.  The most common limiting 
factor is lack of proper education and training. 
Men above 45 years of age are finding it difficult to find 
jobs.  Young people under 23 years with little or no working 
experience, and those with no occupational training and 
specialized education, are particularly affected.  Women are 
still able to find jobs in the traditionally feminized 
sectors of health care and education. 
 
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E. List names and agencies of official clearing on post 
response to this message, including officials for each 
consulate. 
 
STATE      Clyde L. Jardine Jr. 
USDA/FAS   Roger A. Wentzel 
USDA/APHIS Roger A. Wenzel (in the absence of an APHIS 
representative) 
USDOC/FCS  August Maffry 
DOD/ODC    Mark Rumohr 
DOD/DAO    Jeffrey Crews 
NASA       Michael Fawcett 
ABMC       Rodney Nybroten 
AMCONGEN   Michele Bond 
 
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5. A. What is the name of the vendor managing the Mission's 
current defined benefit retirement plan? 
 
AEGON 
 
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B. What is the current employer (USG) contribution rate? 
What is the current employee contribution rate?  Are 
contributions calculated on basis salary?  If something 
other than basic salary is used, define. 
 
 
Only the employee contribution is precisely defined in the 
local retirement plan.  It amounts to 7 percent of the 
employee's total gross salary minus the fixed amount of the 
annual old age State pension provided by the Dutch 
Government. 
The U.S. Government pays the balance of the costs and is 
responsible to insure that contributions are sufficient to 
fund the defined retirement benefits. 
 
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C. When was the most recent independent actuarial evaluation 
performed to ensure that the defined benefit retirement plan 
is actuarially sound?  If it has been more than 3 years, 
when is the next actuarial review scheduled to be performed? 
 
There has been no previous independent actuarial review of 
our retirement plan.  Post has recently engaged an 
independent actuary to review the soundness of our current 
defined benefit plan and, also, to assist in clearing up 
recent issues raised as a result of an unexpected and 
enormous invoice received from the carrier for so-called 
back-service payment. 
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6. The above concludes Post response to questions asked and 
related to this Mission. 
 
SOBEL