Peru seeks to lead UN labour body amid funding shortfall

By Emma Farge

GENEVA, Aug 31 (Reuters) – Peru has entered the race to lead the International Labour Organization, its website showed on Monday, as the body grapples with a financial shortfall that may force it to cut jobs.

• Peru has nominated its former Foreign Affairs Minister Javier Gonzalez-Olaechea to lead the ILO, a letter posted on the ILO website showed.

• Spain has also nominated Labour Minister Yolanda Diaz and they will both run against current head, Togo’s Gilbert Houngbo, who is seeking a second term.

• In his mission statement, Gonzalez-Olaechea, who worked at the ILO for two decades, pledged reform and to help protect dignity in the workplace amid major disruptions caused by artificial intelligence and automation.

• Candidates’ hearings are planned in November, followed by a secret ballot. The new Director-General’s term begins in October 2027.

• The ILO, like the wider UN system, is facing a challenging financial and liquidity situation due to delayed assessed contributions.

• The U.S. has ‌outlined plans ⁠to not pay its ILO contributions for the next fiscal year. Long the largest contributor, the U.S. owes 257 million Swiss francs ($315 million) in assessed contributions and arrears as of July.

• The ILO’s governing body will discuss possible job cuts in a meeting next month. A draft document showed it proposes to cut up to 120 full-time positions for the 2026-2027 period, or around 7% of the workforce.

(Reporting by Emma Farge, Editing by Friederike Heine, Alexandra Hudson)