Trump appointee to UN labour agency ‘frozen’ over funding and influence concerns

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By Olivia Le Poidevin and Emma Farge

GENEVA (Reuters) -The appointment of a Trump nominee as the deputy head of the International Labour Organisation has been “frozen” following concerns from staff and member states it would give Washington too much sway over the body, multiple sources told Reuters.

By unwritten rules, the deputy director general role is held by the biggest donor, the U.S., which pays 22% of the budget

Vacant since mid-September, the post was set to be filled by top Trump economic aide, Nels Nordquist.

However, U.S. President Donald Trump’s administration has openly criticised the ILO, which promotes international workers’ rights standards and tackles issues such as child labour.  The White House in August said the organisation “works to unionise foreign workers and punish U.S. corporate interests abroad”.

Washington also owes the ILO 173 million Swiss francs ($218.13 million) in unpaid fees – a shortfall which could cause 295 job cuts, Reuters reported in October. 

Confidential consultations to resolve the deadlock are ongoing, the sources said. “At the moment the appointment of the DDG is frozen,” while Director General Gilbert Houngbo assesses concerns put forward by members, a diplomatic source told Reuters. 

TOO MUCH POLICY CONTROL?

Some of the sources voiced concerns that Houngbo’s reform plans, which have been shaped in part by Washington’s unpaid fees, would give more sway to the U.S. deputy. 

   An internal ILO proposal showed policy decisions such as international labour standards and workers’ social protection would be the ILO deputy’s direct responsibility.

“This has caused a certain amount of anxiety among members,” a diplomat said. An ILO staff member described the DDG role as “powerful”, with the ability to appoint staff, accept or reject missions and shape the agenda.

Others said the appointment should be conditional on the United States paying its fee shortfall.

An ILO spokesperson said meetings are taking place with workers, employers and governments ahead of a governing body meeting November 17-27. Under ILO rules, the head appoints his own deputy after consultation with this body.

“It is considered proper that, during such dialogues, some stakeholders may express either support for and/or concern about certain items on the agenda,” the spokesperson added.

A State Department spokesperson told Reuters that ILO funding, along with other international organisations, is currently under review to ensure it is “not contrary to American interests.” The ILO spokesperson said discussions were ongoing with Washington over its arrears.

Diplomatic sources said some member states seek a European candidate to serve as a counterbalance to the U.S. DDG. One proposal is to appoint a European Assistant Director-General with responsibility for certain policy areas.

($1 = 0.7931 Swiss francs)

(Reporting by Olivia Le Poidevin; Editing by Sharon Singleton)