By Olivia Le Poidevin and Emma Farge
GENEVA, June 1 (Reuters) – The International Labour Organization has rescinded the appointment of the top U.S. official to be deputy head of the UN agency because of delays in payments from the United States, it said on Monday.
“Sheng Li (United States of America) will therefore not assume the position of Deputy Director-General in July as previously foreseen,” it said in a statement to Reuters.
The U.S. Department of Labor did not immediately respond to Reuters’ request for comment.
Sheng Li was appointed to the role by the ILO in April after months of delays. However, the ILO has since told the U.S. that the appointment will not go ahead unless it pays.
“This decision is without prejudice to the possibility of the United States settling its arrears and thereby regaining its position as the largest contributor in assessed contributions,” the ILO said, adding that it is in discussions with the U.S.
Three diplomats told Reuters that Washington is being asked to pay at least $50 million of the contributions it owes, casting new uncertainty on the agency’s fragile financial situation and potential job cuts.
The U.S. traditionally holds the deputy role as the biggest donor, paying 22% of the ILO budget.
As of May 29, the U.S. owes 257 million Swiss francs ($328 million) in total for 2026 and previous arrears from 2024 and 2025, according to figures on the Geneva-based agency’s website.
(Reporting by Olivia Le Poidevin and Emma Farge in Geneva;Editing by Ludwig Burger and Dave Graham)
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