Peru nominates former minister to steer ILO as agency faces budget crisis
Peru has entered the contest to become the next director-general of the International Labour Organization, which is confronting a funding gap that could lead to staff reductions.
Peru announced its candidacy for the leadership of the International Labour Organization, nominating former foreign affairs minister Javier Gonzalez-Olaechea. Spain has also submitted a contender, Labour Minister Yolanda Diaz, and both will compete against the current director-general, Gilbert Houngbo of Togo, who is running for a second term. In his campaign statement, Gonzalez-Olaechea, who spent twenty years at the ILO, pledged to modernise the body and protect workers’ dignity as automation reshapes labour markets.
The ILO is grappling with a severe financial shortfall, exacerbated by the United States’ decision to withhold its contributions for the next fiscal year, leaving an arrears balance of 257 million Swiss francs. The agency’s governing body is set to consider a proposal to eliminate up to 120 full-time positions, roughly 7 % of its workforce, in the 2026-2027 period. Candidate hearings are slated for November, with a secret ballot determining the new director-general, whose term would begin in October 2027.
Why it matters
The ILO’s leadership and budget decisions will affect global labour standards and millions of workers worldwide.
In this story
