Key facts
- Peru has nominated Javier Gonzalez-Olaechea, former Foreign Affairs Minister, to lead the International Labour Organization (ILO).
- Spain has also nominated Labour Minister Yolanda Diaz, who will compete against Gonzalez-Olaechea and the incumbent, Gilbert Houngbo.
- The ILO is experiencing a financial and liquidity crisis due to delayed assessed contributions.
- The U.S. owes $315 million in assessed contributions and arrears and plans to withhold payment for the next fiscal year.
- The ILO proposes cutting approximately 120 full-time positions, or 7% of its workforce, for the 2026-2027 period.
Peru has entered the race to lead the International Labour Organization (ILO), nominating its former Foreign Affairs Minister Javier Gonzalez-Olaechea. He will compete against Spain's Labour Minister Yolanda Diaz and the incumbent Director-General, Togo's Gilbert Houngbo, who is seeking a second term. Candidates' hearings are scheduled for November, with a secret ballot to follow. The new Director-General's term is set to begin in October 2027.
The ILO, like other UN bodies, is experiencing financial difficulties due to delayed assessed contributions. The United States, historically the largest contributor, owes 257 million Swiss francs ($315 million) in contributions and arrears as of July and has outlined plans to not pay its ILO contributions for the upcoming fiscal year. This financial strain may force the organization to implement job cuts. A draft document indicates a proposal to reduce up to 120 full-time positions, approximately 7% of the workforce, for the 2026-2027 period. The ILO's governing body is scheduled to discuss these potential cuts in September.