Key facts
- Spain nominated Labour Minister Yolanda Diaz to head the International Labour Organization.
- Diaz could become the first woman to lead the UN agency.
- The U.S. plans to withhold its contributions for the ILO's next fiscal year.
- The ILO is owed $315 million in assessed contributions and arrears by the U.S.
- The agency has implemented job cuts and hiring freezes due to financial shortfalls.
Spain has nominated its Labour Minister, Yolanda Diaz, to lead the International Labour Organization (ILO), potentially making her the first woman to hold the position. The candidacy comes as the Geneva-based agency faces a significant financial crisis due to the United States' plans to withhold its contributions for the upcoming fiscal year.
Diaz, who also founded the left-wing coalition Sumar, is recognized for her labor reforms in Spain, including measures that reduced temporary employment and boosted overall employment levels. However, her relationship with the business lobby has reportedly soured, and she has yet to fulfill a promise to shorten the work week. She is expected to compete against the current Director-General, Gilbert Houngbo of Togo, for the role, with an election scheduled for November.
The ILO, which sets international labor standards and promotes workers' rights across its 187 member states, is grappling with substantial financial pressure. As of July 17, the U.S. owes 257 million Swiss francs ($315 million) in assessed contributions and arrears. This financial strain has already led the organization to cut 120 jobs, freeze hiring, and implement other cost-saving measures. The U.S. Mission in Geneva has not yet commented on the situation, but a House spending bill has been proposed that would eliminate U.S. funding for several international organizations, including the ILO.
Sources indicate that Diaz's candidacy is likely to receive support from many European states. The ILO, founded in 1919, operates with a unique tripartite structure involving governments, employers, and workers.