ILO Faces Financial Crisis: Job Cuts Loom Without Member Dues
The International Labour Organization (ILO) is experiencing severe financial strain, prompting consideration of significant job cuts and restructuring. Due to outstanding contributions from the U.S. and other member states, the ILO faces a critical cash flow issue, potentially impacting its global labor rights initiatives.
The International Labour Organization (ILO) is grappling with a critical cash flow crisis that could lead to the elimination of up to 295 positions, equivalent to 8% of its workforce, if countries such as the United States fail to pay their dues.
The crisis stems from over 260 million Swiss francs in unpaid contributions from several member states, representing about a third of ILO's biennial assessment. An internal document details reform proposals to address these financial challenges, including staff relocations and potential job cuts.
The U.S., ILO's largest contributor, owes over 173 million francs. Current budget measures may stabilize finances only if costs are tightly controlled. The situation highlights ongoing concerns about global support for labor rights and ILO's operational sustainability.
(With inputs from agencies.)
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