Key facts
- Spain has nominated Labour Minister Yolanda Diaz to lead the International Labour Organization (ILO).
- Diaz's nomination could make her the first woman to head the UN labor agency.
- The ILO is experiencing a financial crisis due to delayed payments from member states, particularly the U.S.
- The U.S. owes 257 million Swiss francs in assessed contributions and arrears to the ILO.
- The U.S. House of Representatives has supported a spending bill that would eliminate funding for the ILO.
Spain has put forward Labour Minister Yolanda Diaz as a candidate to lead the International Labour Organization (ILO), potentially becoming the first woman to hold the position. The nomination comes as the ILO grapples with a significant financial crisis stemming from delayed contributions by member states, most notably the United States.
Diaz's candidacy is supported by the Spanish government, which highlights her record of labor reforms, including measures to reduce temporary employment and boost employment levels in Spain. She is credited with substantially raising the minimum wage, though her relationship with the business lobby has reportedly soured, and a promise to shorten the work week remains unfulfilled.
Diaz is expected to compete against the current Director-General, Gilbert Houngbo of Togo, whose term concludes in 2027. The election for the top job is scheduled for November of this year.
The ILO has confirmed a challenging financial and liquidity situation due to delayed assessed contributions, with total arrears amounting to 368 million Swiss francs as of July 17. The U.S., historically the largest contributor, owes 257 million Swiss francs ($315 million) in contributions and arrears. The White House has supported a House spending bill that proposes eliminating U.S. funding for the ILO for the upcoming fiscal year, alongside other international organizations like UNESCO and the World Health Organization.
In response to the cash-flow shortfall, the ILO has implemented cost-cutting measures, including rescinding the appointment of a U.S. official to a senior leadership role and cutting 120 jobs. Hiring has also been frozen.