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    Home»Finance»ILO financial crisis takes centre stage in leadership race
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    ILO financial crisis takes centre stage in leadership race

    EditorialBy EditorialSeptember 23, 2026No Comments3 Mins Read
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    ILO financial crisis takes centre stage in leadership race
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    The three candidates vying for the financial crisis gripping the organisation at the heart of their pitches to members.

    Incumbent ILO chief Gilbert Houngbo of Togo is joined by two other candidates seeking the United Nations agency’s top post: Spanish Labour <a s former foreign minister Javier Gonzalez-Olaechea.

    They took part in an hours‑long public event in Geneva Wednesday, presenting their platforms and answering questions from government, employer and employee representatives.

    The ILO is facing a serious financial crisis, with a $363‑million deficit, Diaz Perez warned.

    “Continuing on this path is not an option… Continuing this way will lead to the total decline of this institution,” she added.

    The UN labour agency’s core mandate is to promote workers’ rights and improve working conditions.

    However, the Geneva‑based agency has recently faced turbulence amidst slumping international funding, especially from the United States, traditionally its biggest contributor.

    It recently drafted a reform plan involving cutting up to 120 jobs.

    The top priority, Houngbo said, was “to finish up the reform”, and ensure “the medium- to long-term financial

    He insisted that it was “within reach” to fully implement the reform, which he said was “expected to generate significant efficiency gains, including savings of approximately 12.5 percent”.

    Houngbo also proposes maintaining current levels of member state contributions and pledges and to cap the agency’s spending at 75 percent of available re

    He said he aimed to establish a reserve fund to help the ILO weather future shocks.

    The ILO has traditionally relied on the United States for the bulk of its funding — 22 percent of the budget — but according to the agency’s website, Washington has accumulated arrears totalling more than 173 million Swiss francs ($214 million) for 2024 and 2025.

    It has also yet to pay its 2026 contribution of 84 million francs, the ILO says.

    The Spanish candidate however emphasised that the ILO’s financial crisis was not solely due to a single member state’s failure to pay. US cuts to other parts of the multilateral system had not had the same impact, she noted.

    “The financial management of this crisis has been flawed,” she charged, proposing that the ILO diversify its funding

    Gonzalez-Olaechea also argued for a “financially

    He pledged to engage in dialogue with states in arrears to understand why they had failed to meet their obligations and to persuade them to settle their dues.

    The vote, by secret ballot, will take place on November 16, with the next ILO chief’s term set to begin in October 2027.

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