Switzerland warns ILO against potential relocation from Geneva

Swiss threats of retaliation at the ILO partly heeded Keystone-SDA

Switzerland has threatened to deprive the International Labour Organization (ILO) in Geneva of CHF4.7 million ($5.83 million) in savings for this year and 2026, in the form of suspended loan repayments. On Tuesday, some of its concerns seemed to have been heard.

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At the start of the meeting of the Governing Body of the ILO a week ago, Director-General Gilbert Houngbo made no secret of the fact that the institution’s financial situation is “unprecedented”. A few months ago, he said that the US government cuts to UN agencies had resulted in around 200 of the 3,500 jobs being lost.

But almost 300 more jobs could be cut. The organisation is exploring several avenues, including relocation. During a discussion with the Governing Body a few days ago, Valérie Berset Bircher, Head of International Labour Affairs at the Swiss State Secretariat for Economic Affairs (SECO), warned the ILO about any relocation.

The headquarters functions must be maintained. Otherwise, she said, “Switzerland will not be able to suspend repayment of the loan for 2025 and 2026” for the renovation of the ILO building. “This represents CHF2.35 million per year,” she said. Similarly, Switzerland cannot support “possible relocations” without a rigorous, costed analysis of the relationship between financial and operational costs and benefits.

“The fragmentation of headquarters and the relocation of political departments are contrary to the objectives of efficiency”, said the ambassador. Switzerland fears additional costs “at a time when the organisation is facing a cash shortage”.

Fine-tuning

Houngbo admitted on Tuesday that “we still need to fine-tune” any relocations discussed with a view to making savings. Without prejudging whether or not he would agree with Switzerland on the content.

On the employers’ side too, the Swiss threat seems to have been heard. The group’s vice-chairman said: “This is a major saving” thanks to the suspension of loan repayments.

On Tuesday evening, after further long hours of negotiations, the members of the Board of Directors were still unable to approve a decision to give the CEO the mandate to prepare the reform of the institution.

Various scenarios are on the table, including a zero nominal growth budget for 2026 and 2027 or a 15-20% reduction. And to deal with the liquidity crisis, a number of avenues are being explored, including cuts, a recruitment freeze, a reduction in non-staff expenditure and even relocations.

Translated from French by DeepL/jdp

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