Peru seeks to lead UN labour body amid funding shortfall

GENEVA, Aug 31 - Peru has entered the race to lead the International Labour Organization, its website showed on Monday, as the body grapples with a financial shortfall that may force it to cut jobs.• Peru has nominated its former Foreign Affairs Minister Javier Gonzalez-Olaechea to lead the ILO, a letter posted on the ILO website showed.• Spain has also nominated Labour Minister Yolanda Diaz and they will both run against current head, Togo's Gilbert Houngbo, who is seeking a second term.• In his mission statement, Gonzalez-Olaechea, who worked at the ILO for two decades, pledged reform and to help protect dignity in the workplace amid major disruptions caused by artificial intelligence and automation.• Candidates' hearings are planned in November, followed by a secret ballot. The new Director-General's term begins in October 2027.• The ILO, like the wider UN system, is facing a challenging financial and liquidity situation due to delayed assessed contributions.• The U.S. has outlined plans to not pay its ILO contributions for the next fiscal year. Long the largest contributor, the U.S. owes 257 million Swiss francs ($315 million) in assessed contributions and arrears as of July.• The ILO's governing body will discuss possible job cuts in a meeting next month. A draft document showed it proposes to cut up to 120 full-time positions for the 2026-2027 period, or around 7% of the workforce. REUTERS