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Underpaid and Inexperienced Workers Overwhelm the EPO, Granting Many Invalid Patents and Placing Pressure on Veteran Examiners

posted by Roy Schestowitz on Dec 16, 2024,
updated Dec 16, 2024

[LSCTH] meets Site Manager VP1 - Report on meeting with VP1 and his team on 29 November 2024

So-called "production" (giving monopolies) pressure is "compromising the quality of our products" [sic] according to a new report

Today we relay an EPO publication dated just 4 days ago (this past Thursday). In it, the Local Staff Committee The Hague (LSCTH) discussed several issues including production pressure at the EPO, having "met with VP1 in his function of Site Manager The Hague together with members of the administration." The publication mostly speaks for itself:

Staff Committee The Hague
Comité du personnel de La Haye
Personalausschuss Den Haag

Rijswijk, 12 December 2024
sc24011hp

LSCTH meets Site Manager VP1

Report on meeting with Steve Rowan on 29 November 2024

Dear colleagues,

On 29 November 2024, the Local Staff Committee The Hague met with VP1 in his function of Site Manager The Hague together with members of the administration. During the meeting, the following seven issues were discussed:

1. Schools – Education Allowance

European School The Hague (ESH)

The Local Staff Committee (LSC) acknowledged the active efforts of the Director of Talent Acquisition and Development (DTAD) and the School Liaison Officer (SLO) in addressing the financial, staffing, and accommodation challenges faced by the ESH.

Regarding the structural financial difficulties of the ESH primary section and their impact on the quality of teaching, the LSC cautioned that the next round of cost-cutting measures planned for the 2025-2026 academic year could potentially trigger renewed discontent among colleagues. The LSC also emphasized the need for improved communication regarding the actions undertaken by the administration, suggesting that such communication be coordinated with the LSC where possible.

The DTAD responded by emphasizing that the administration is treating these issues seriously, particularly because they directly affect the recruitment of new staff, who require access to a well-functioning ESH when relocating from other countries. He reported that an EPO delegation had visited the ESH multiple times, along with other international schools in The Hague, and that the topic of facilitating smooth access for EPO staff had been discussed. He also acknowledged that many parents had contacted the administration this year, expressing concern over the primary school’s structural financial deficit.

The DTAD reminded that of the two cost-cutting measures originally planned for the 2024-2025 academic year, only the reduction in teaching assistants was implemented, while the combination of classes was postponed to a later date. He noted that the next high-level meeting between the Dutch authorities, ESH management, and International Organizations (IOs) is scheduled for the first quarter of 2025, during


which ESH management is expected to present a detailed action plan. Furthermore, he briefly reported on the most recent advisory board meeting of the ESH, held on 21 November 2024, which demonstrated alignment among all IOs on the strategy moving forward. For the 2025-2026 academic year, the DTAD indicated that the anticipated cost-cutting measures would be less severe than expected, with no further staff reductions and no changes to the admission policy. Concerning the ESH secondary section, he announced that the wing of the school currently housing asylum seekers would be returned to the ESH in 2027.

VP1 acknowledged the positive collaboration with the LSC and while he recognized some progress on the ESH topic had been made, he stressed the importance of timely communication from both the ESH and the administration.

The LSC reiterated the importance of the administration maintaining pressure on ESH management and that parental dissatisfaction should not be leveraged as bargaining power in negotiations with Dutch authorities or IOs. The SLO agreed and announced plans to hold a dedicated meeting with the newly appointed Communication Officer of the ESH to ensure aligned and consistent communication.

The LSC raised a further concern about the finances of the ESH secondary section. Its hybrid funding model depends on subsidies from both the Dutch government and the EU. Under this arrangement, half of the adjustments to teachers' salaries must be covered by the Dutch state, while the other half is funded by the EU. However, since the EU's compensation is calculated based on a lower inflation rate, the LSC warned that similar structural financial issues to those faced by the ESH primary section are likely to emerge in the coming years, underscoring the need for proactive monitoring by the administration.

German International School The Hague

The LSC made reference to recent exchanges with the administration (see our letter to the administration and the reply from VP4), prompted by one of the numerous negative consequences of the Education and Childcare Allowance Reform (ECAR) on staff. In particular, the LSC highlighted the inconsistent approach of the administration when dealing with the application of the transitional measures for international schools. According to the administration in 2021, colleagues with children attending the German International School The Hague (DISDH) were not considered eligible for transitional measures because the school fees at the time were below the ECAR ceiling. The LSC stressed again the flaws of this interpretation, which is not sustained by the regulations and is in contrast with the fact that already in 2021 some of the school years had cumulative school fees well above the ceiling. Additionally, in 2024-2025, more school years present cumulative school fees exceeding the ECAR ceiling, therefore prompting a handful of colleagues to request full reimbursement of the fees under the transitional measures. Thus far, the administration has refused these requests, leaving the affected colleagues to personally cover the difference between the ECAR ceiling and the increased school fees.

The LSC pointed out that this refusal is based on an incorrect interpretation of the ECAR provisions in force. Furthermore, the LSC stressed how the impact of two legal flaws, identified by the Appeals Committee in recent opinions, render the position of the


administration hard to maintain. The first flaw concerns the consultation process: the wording of Article 20 defining the transitional measures were amended to the detriment of staff after the consultation of the GCC took place1. The second flaw relates to application of the sustainability clause of the Salary Adjustment Procedure (SAP), which influences the calculation of the ECAR ceiling.

The LSC further underscored the political implications of the administration’s interpretation of the rules, excluding from the transitional measure a school well embedded into the European educational framework. Such a decision creates a perception of inequity, leaving the affected colleagues disappointed and with no other possibilities than to resort to legal remedies. The SLO expressed her understanding of the situation faced by the affected colleagues but confirmed the administration’s differing interpretation of the ECAR regulations.

The LSC questioned the administration's strategy in persisting with its flawed interpretation, especially since the case appears legally untenable. The LSC then proposed the creation of a dedicated working group to address this issue.

VP1 responded by stating that the administration stands by its interpretation and rejected the idea of forming a working group, asserting that such a measure would only be necessary if changes to the Service Regulations were required.

Dutch Schools

The LSC exposed another of the numerous negative consequences of the ECAR. The LSC reminded VP1 that prior to the introduction of the ECAR, the ouderbijdrage — a contribution paid by parents who send their children to Dutch schools — was reimbursed by the administration as a direct school cost. Following the implementation of ECAR, the ouderbijdrage had been fully reimbursed by the Office still as a direct school cost for all school years up to 2023-2024. However, starting in January 2024, it seems that the administration unilaterally decided to discontinue this practice without notifying the affected colleagues and without applying the supposed change in practice in a coherent manner. This has left colleagues with children in Dutch schools feeling betrayed, and it contradicts one of the alleged fundamental principles of ECAR — to ensure Dutch nationals can also benefit from the education allowance. The LSC noted that this change in practice also undermines the administration’s stated good intentions, resulting in an increase in litigation cases. Furthermore, the scope of Article 71 ServRegs, relevant for this dispute, has been under scrutiny of the Appeals Committee, and new developments are to be expected on this front, since also the wording of this article was amended to the detriment of staff after the consultation of the GCC took place

The SLO responded by explaining that Dutch law regarding the ouderbijdrage changed in 2021, reclassifying the contribution as entirely voluntary. She stated that under this new legal framework, the administration does not interpret the ouderbijdrage as a compulsory contribution, contrary to the LSC’s position. She acknowledged that communication regarding this policy change could have been handled better. The LSC pointed out that the regulations refer to “necessary costs” and not to “compulsory costs” as sustained by the Office.

_____

1 See document GCC/DOC 2/2021 vs CA/D 4/21


2. Demolition of the Shell, Renovation of the Hinge

According to point 32 of the CA document CA/73/24,

"the renovation in the Hinge building will impact staff for six to nine months in 2027 due to the temporary closure of certain facilities. The kitchen and canteen in the old section of Hinge will be closed, […]. Additionally, sports facilities in the old part of Hinge such as the sports bar, gymnasium and squash courts will be inaccessible during the renovation. Despite these closures, facilities in New Hinge, including the fitness room and changing rooms, will remain open.”

[emphasis added]

The LSC pointed to the major impact on staff of the above and asked to be involved via a working group, as had been the case for the New Main.

The administration responded that the demolition will be done safely for staff concerning noise, dust and asbestos. A canteen service will be provided during renovations. The project will pass the Administrative Council in several steps and staff will be informed in advance. Staff or staff representation will not be involved but the caterer, Amicale and the LOHSEC2 will be.

The LSC pointed to the possibility to use the surface freed up by the demolition of the Shell building for making the premises more attractive for staff — in line with the general building strategies — for example by building new sports facilities. The administration replied that this discussion is ongoing at the level of the Administrative Council.

The question whether the demolition of the Shell building could be an opportunity to offer an on-site crèche — as is the case in Munich — in the area thus freed up was raised by the LSC. This would be convenient for mothers, also in view of breast-feeding. The administration commented that the discussion about a crèche is a historic one and that the True Colors crèche is a very good option as it is just 10 minutes away from the Office. In the NWoW era, a lot of colleagues choose a crèche close to their homes. It is to be seen how the situation for the crèche in Munich evolves in that light.

The LSC asked for an update on the topic of paid breastfeeding breaks: the EPO still has no regulations regarding paid nursing breaks. We are alone in Europe on this front. The administration replied that the point had been brought forward in the technical meetings on parenthood leave: the Service Regulations are currently being reviewed, and the administration will come back to the topic in the context of parenthood leave.

3. Young Professionals

The LSC informed VP1 about a team of examiners in The Hague where nearly half of the team consists of Young Professionals (YPs). This proportion raised concerns regarding their training and the distribution of workload within the team. The LSC explained that such a high ratio was placing significant pressure on both the examiners and the

____

2 Local Organisational Health, Safety and Ergonomics Committee


team manager, questioned the sustainability of this ratio and inquired whether other teams were experiencing similar issues.

The LSC also referred to document CA/32/22 (see points 18 and 19), which states that one-third of all YPs should be offered an extension of two additional years. In practice, however, the proportion of YPs receiving extensions is twice as high. The question was raised as to why these YPs are not simply recruited.

VP1 stated that he would work with Human Resources to assess the balance of YPs across the various teams in DG1 and committed to provide feedback to the LSC.

4. Production pressure

According to the planned budget for 2025 (CA/50/24), the EPO aims to deliver a total of 413 341 SEO products (page 21) with 4 025 examiners (see Annex 7.3). This represents a 7% increase in required productivity compared to the objective derived from the 2024 budget. Moreover, the DG1 dashboard already introduced a 4% increase in targeted productivity between 2023 and 2024.

The LSC emphasized that these increases in productivity targets are not aligned with the figures outlined in the 2023 financial study (page 18), which forecast a more modest 2.1% annual increase in productivity, nor with the sustainability objectives outlined in the Strategic Plan 2028 (SP2028). These productivity increases pose significant challenges, as they contradict SP2028's first driver (“People”), by putting the health of colleagues at risk, and the third driver (“High-quality, timely products and services”), by potentially compromising the quality of our products.

Many colleagues in The Hague are worried about the impact on their health and the quality of their work due to, in some cases double-digit, increases in objectives for 2025. The DG1 dashboard objectives often differ from those outlined in the yearly budget, so the LSC enquired whether the DG1 objectives could be adjusted to align with the financial study’s 2.1% annual increase target.

VP1 responded that employees with specific concerns should consult their team managers, directors, or HR Business Partners (HRBPs). While DG1 productivity would align this year with the financial study, this had not been the case in the previous three years which showed significant dips in productivity due to the pandemic, the digitalization of the patent granting process and the introduction of new tools.

VP1 confirmed that productivity objective for 2025 has increased, noting that the trajectory toward the financial study’s long-term targets did not need to be linear. As a result, the objective for 2025 was set slightly higher than the target derived from the 2025 budget, with the ultimate aim of meeting the financial study’s end goal.

To help DG1 achieve its objectives, VP1 emphasized the need for examiners to focus primarily on the technical and legal aspects of their work. He highlighted the growing role of Artificial Intelligence (AI) in search, classification, and legal guidance through the Legal Interactive Platform. This would allow examiners to dedicate more time to analysing and evaluating patent applications, with their expertise redirected outside of DG1’s core areas only when strictly necessary.


The LSC provided concrete examples of how the increased productivity objective is being implemented in certain teams, leading to significant stress among staff. For instance:

• The files allocated to colleagues on long-term (sick) leave are being assigned to the rest of the team,

• In some teams, home leave and parental leave are being excluded from the 2025 capacity planning.

VP1 responded that such practices should not occur and committed to investigating these issues.

In response to VP1’s statement about refocusing examiner expertise on DG1’s core areas, the LSC cautioned against limiting examiners’ involvement in non-core areas such as recruitment, software development, or testing. The LSC likened these opportunities to adding “salt and pepper” to one’s work.

VP1 reassured the LSC that some tasks requiring examiner expertise would continue to exist in the future, and new opportunities would emerge through collaborations such as those with the European Innovation Council.

5. Future of Work & impact of Artificial Intelligence (AI)

The LSC addressed three specific issues relating to the future of work.

The first issue pertained to classification. The EPO claims a “human-centric approach” to implementing AI in the Patent Granting Process (PGP). However, this seemed to have been lacking in the development and rolling out of the AUTO-AI classification tool, which automatically classifies incoming US publications. Attempts by classifiers at providing feedback, being involved in training the model and requests for involvement were apparently refused. Additionally, the LSC pointed out that some classification schemes, developed at great expense for the EPO, are now being compromised because the AI classification tool is not adequately trained. This situation not only undermines past efforts and wastes EPO resources but also impacts the service quality provided to CPC users outside the EPO. The LSC asked VP1 that classifiers be involved in the development of AI tools to put into practice the claimed “human-centric approach”.

In response, VP1 stated that this issue would be forwarded to the new COO who will take office in January.

The second issue raised by the LSC focused on the future of work and impact of AI on staffing levels for formalities officers (FOs), who also feel that the ongoing digitization process lacks a “human-centric approach.”

VP1 clarified that FOs will continue to have opportunities for managerial responsibilities under the reorganization of Job Groups 5 and 6. The reorganization, already discussed with the new COO, is designed to ensure meaningful roles for formalities officers, particularly in supporting examiners in their work. One suggestion, proposed by FOs themselves, was to take minutes during oral proceedings in opposition. However, VP1


noted that if AI were used for this task, training formalities officers for this role might not be necessary. VP1 commended the work of FO and HR teams in navigating the significant changes brought by the reorganization, which is set to take effect on 1 April 2025. He highlighted two key aspects of this reorganization: ensuring the right skills are placed in the right areas across directorates and identifying potential alternative roles for formalities officers. VP1 concluded by quoting the President’s commitment that “no one should be left behind” and by highlighting potential opportunities for Job Group 6 in DG4 and DG5.

The third issue addressed by the LSC concerned the future of work and impact of AI on staffing levels for examiners.

VP1 acknowledged that, despite the increasing role of AI, core tasks such as analysing applications, and assessing novelty, inventive step, and clarity will remain examiner responsibilities. He emphasized that the EPO would need to recruit more examiners in light of the rising workload and anticipated retirement levels. VP1 also noted that capacity imbalances across teams would necessitate retraining some examiners. He mentioned initiatives such as forums to keep examiners updated on technological advancements, as well as opportunities for additional training to facilitate transitions between technical fields.

The LSC reminded that such opportunities are positive and also need to be accompanied by appropriate time budget.

VP1 agreed, stating that training time should be tailored to individual needs, with the support of an Individual Development Plan.

6. Update on people related matters in DG1 management

During the last meeting with VP1 in June, the LSC had raised the issue of toxic working environments in DG1 management. At that time, the administration had indicated that a shift toward placing greater emphasis on people-related matters was underway and had also suggested that the LSC should first involve the HR Business Partners (HRBPs) when identifying potential toxic management practices. The LSC informed VP1 that this recommendation has been followed and informed VP1 that he would be again contacted directly if problems persist. The LSC also asked VP1 to continue emphasizing people related matters in DG1 management circles.

Regarding this matter, the Director of Talent Acquisition and Development also recommended to staff the Personal Effectiveness courses, which were fully revised in 2024. These courses are now shorter and more impactful, focusing on topics such as interpersonal skills, resilience, and New Ways of Working (NWoW).


7. Update on health-related topics

The LSC reminded VP1 of the need for nurses to be employed internally. In general, staff in The Hague require more in-house support compared to other EPO sites, as accessing quality healthcare providers in the Netherlands is more challenging than in Germany or Austria.

The LSC acknowledged that employing external nurses does not prevent the provision of good and sustainable health services to staff. However, experience has shown that the contracts of external nurses may be abruptly terminated, as seems to be the case with the two recently appointed external nurses in The Hague, whose contracts are not expected to be renewed after January 2025. The LSC noted that this undermines service continuity and hinders the development of EPO-specific health knowledge.

The LSC expressed similar concerns regarding the position of the occupational health physician, who will retire soon. This critical role should be filled by an internal employee based in The Hague, given the unique characteristics of the Dutch healthcare system.

The Director of People Engagement and Partnership responded by stating that the administration's intention is not to reduce the quality of health-related services, but rather to enhance them. She added that the administration is working on a new and improved Employee Assistance Program (EAP) contract, which will be presented to the COHSEC in 2025. Finally, she confirmed that the administration acknowledges the needs highlighted by the LSC and is exploring ways to address them.

Kind regards,

Your local staff committee The Hague

There's lots of more stuff in there, including the "hey hi" (AI) hype and why management is just fantasising about it properly replacing workers. For the most part, the document is softly spoken, but it does help raise many problems.

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