Mr. President,
We thank the Secretariat for the report on the financial situation of the Organization and the implications of the institutional reform on the approved budget for the 2026–2027 biennium.
We take note that the accumulated deficit from the previous cycle exceeds fifty-two million dollars. We also observe that the reform entails a reduction of nearly nine per cent of the operational budget, and that, if contingency measures are activated, reductions could reach up to twenty per cent, including the possible elimination of up to three hundred and fifty posts.
We understand the need to foresee contingency measures. At the same time, we emphasize that these measures are temporary and would only be activated if strictly necessary.
Any eventual implementation of such measures will always require due consultation and approval by Member States, who must be kept informed of the evolution of the financial situation.
Cuba considers that several issues require greater clarity before this Council takes decisions on the matter.
First, no regional impact analysis is presented. This is essential to assess how the reductions would affect Latin America and the Caribbean.
The reduction of technical cooperation financed through the regular budget and the decrease in operational expenditures could significantly affect several countries in the region and other developing countries, yet the document does not provide information that allows this dimension to be properly assessed.
Second, no concrete criteria are defined for the elimination of posts, nor the parameters that will guide the selection of affected areas or functions. This is a central element to ensure transparency and predictability in a process of such magnitude, which—as the report itself notes—will have lasting and negative effects on the Organization’s capacity to fulfil its mandate.
Third, the essential functions that the Secretariat commits to preserve are not identified, nor are the monitoring mechanisms that would allow the Governing Body to assess the impact of contingency measures on the ILO’s ability to carry out its responsibilities.
Mr. President,
With regard to the draft decision, Cuba considers it necessary for the Governing Body to request specific actions that provide greater transparency and predictability.
We propose requesting that the Secretariat submit, prior to any activation of contingency measures, a technical report on the regional, headquarters, and programmatic impact of possible reductions.
We also propose the development of an objective criteria matrix for the application of contingency measures, and the establishment of a periodic reporting mechanism that would allow the Governing Body to monitor the evolution of the financial situation and the effects of the measures adopted.
These actions would ensure that the Governing Body has the necessary information to exercise its governance responsibility.
Thank you.