Background on the United States and its Role in the International Labour Organization (ILO)
The United States, the largest funder of the International Labour Organization (ILO), has failed to pay its contributions for the years 2024 and 2025, according to a recent statement by ILO Director-General Gilbert Houngbo.
The Significance of US Funding
The United States represents 22% of the ILO’s budget, making it a crucial financial partner alongside other major contributors such as China, Japan, Germany, the United Kingdom, and France. Historically, the US has paid its contributions, albeit sometimes with a delay.
ILO’s Financial Situation and Future Plans
Houngbo expressed “good hopes” that the US will eventually pay its outstanding contributions, emphasizing that the ILO is not perceived negatively by member states.
The ILO has explored various options to avoid financial difficulties, but there are limitations to what can be done. The organization’s proposed budget for the 2026-2027 biennium stands at approximately $880 million, a relatively stable figure.
This budget was approved in March by the ILO’s Management Board, which includes the United States. It now awaits ratification by the 187 member states during their upcoming 113th International Labour Conference in Genebra from June 2 to 13.
Impact of Unpaid Contributions
Under the presidency of Donald Trump, there was a possibility that the US might cease funding the ILO. However, for now, the organization has no plans to alter its proposed budget.
The unpaid contributions have forced the ILO to terminate the employment of around 200 staff members from a total workforce of approximately 3,600 due to the closure of about half a century’s worth of US-funded projects.
Key Questions and Answers
- What is the International Labour Organization (ILO)? The ILO is a United Nations agency focused on promoting social and decent work standards, protecting workers’ rights, and encouraging decent employment opportunities.
- Why is US funding significant for the ILO? The United States contributes 22% of the ILO’s total budget, making its financial support crucial for the organization’s operations and initiatives.
- What are the consequences of the US not paying its contributions? The ILO has had to terminate employment for around 200 staff members due to financial constraints caused by the unpaid contributions.
- What is the ILO’s proposed budget for 2026-2027? The ILO has proposed a budget of approximately $880 million for the 2026-2027 biennium.
- When will the ILO’s proposed budget be ratified? The ILO’s 187 member states will vote on the proposed budget during their upcoming 113th International Labour Conference in Genebra from June 2 to 13.
