The International Labour Organisation (ILO) faces ‘critical’ cash flow problems and could abolish up to 295 posts – about eight per cent of its workforce – if the US and other countries do not pay their dues, according to an internal document.
The 35-page draft document, sent to staff yesterday by ILO Director-General Gilbert Houngbo and seen by Reuters, outlines proposals to reform the UN agency, which promotes international labour rights, and reduce costs.
The proposals, which also include the possibility of moving dozens of staff out of the ILO’s Geneva headquarters, will be subject to further consultations before being presented to its governing body in November.
“With arrears from several member states totalling over 260 million Swiss francs ($323.34m) – about a third of the biennial assessment – the cash flow situation has become critical,” the document states.
The US is the largest donor to the ILO, which won the Nobel Peace Prize in 1969 for its contributions to improving labour conditions globally and protecting human rights.
It has helped remove many children from child labour.
It was not immediately clear what impact cuts would have on operations.
The US contributes 22pc of the ILO’s regular budget but owes over 173m francs, with China, Germany and others also behind on payments.
The US did not immediately respond to a request for comment.
The ILO, which says on its website it employs around 3,500 staff, brings together governments, employers and workers to set labour standards around the world.
In a statement to Reuters, the ILO said it was, like the wider UN system, facing “a challenging financial and liquidity situation due to delayed assessed contributions” that had affected its cash flow.
“As the director general has underlined, every effort is being made to avoid involuntary staff terminations, but this scenario cannot be entirely ruled out if the financial situation does not stabilise,” it said.
“The ILO senior management keeps staff regularly informed about developments and is in dialogue with the Staff Union as part of this process.”
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