The International Labour Organization (ILO) administration will hold an extraordinary meeting in September to consider a request by the agency's director-general to eliminate 120 positions, following the failure of the United States to pay its financial contributions.
The September 7 meeting has a single item on its agenda, according to documents setting out the order of business for the UN agency's governing body. Like other UN organisations, the ILO's finances are being strained by cuts in US funding.
The agency, led by Director-General Gilbert Houngbo, needs to save approximately $22 million and has indicated it no longer has scope to reduce expenditure beyond personnel costs.
Member states contribute to the ILO's budget, but the United States has outstanding payments of €185 million, covering its contributions for 2024 and 2025. Its 2026 contribution of €88.7 million is not yet in arrears. Combined, total pending US payments amount to €275 million.
Mandatory US contributions account for 22% of the ILO's budget. China follows with 20%, Japan with 7%, Germany with 5.6%, and France with 3.8%, while Spain represents 1.9%, according to the 2026–27 revenue budget.
The ILO's funding crisis comes on the eve of the opening of the competition for the post of director-general. The incumbent, Gilbert Houngbo — a former prime minister of Togo who has led the organisation since 2022 — is seeking re-election in November. His rival is Spain's deputy prime minister and minister of Labour and Social Economy, Yolanda Díaz.
The ILO Governing Body confirmed at its June meeting that Houngbo should implement 'contingency measures', including a 'fair and transparent process to identify posts that could be suppressed'.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=535138
