Decision concerning the contingency framework for the 2026–27 biennium

The Governing Body:

(a) took note of the projected financial information and implications included in document GB.357/PFA/4 and confirmed the approach presented by the Director-General with the continued implementation of the cost-containment measures;

(b) confirmed that the Director-General should proceed with the implementation of the necessary contingency measures, based on, but not limited to, the measures described in paragraphs 12–20 of document GB.357/PFA/4, taking into account its guidance, by:

(i) conducting a fair and transparent process to identify positions for possible abolishment on the basis of thematic priorities, while protecting critical capabilities and capacity retaining roles that are essential for mandate delivery, legal compliance and oversight functions, giving due regard to possible further non-staff reductions;

(ii) engaging in meaningful social dialogue with the Staff Union - in line with the Memorandum of understanding on the applicable framework for social dialogue in the context of the ILO reform, the Framework agreement on workforce adjustment and the Staff Regulations - on the impact on staff, the selection criteria, applying them across all contract types, and appropriate measures to support impacted staff, giving due regard to the need for timely action;

(c) requested the Director-General to organize an information session for constituents in September 2026 and to present an update on the financial position of the regular budget and on the implementation of the contingency measures at its 358th Session (November 2026).

(d) approved the suspension of the provision to replenish the Building and Accommodation Fund for the financial period 2026-27, amounting to US$8.2 million;

(e) confirmed that the Office should submit a proposal to the Governing Body and the International Labour Conference in 2027, to amend Article 20 (2) of the Financial Regulations to allow interest income to be credited directly to the Working Capital Fund on an annual basis; and that the balance of the Working Capital Fund should not go above 25 per cent of the annual amount of assessed income in Swiss francs of a financial period.

(GB.357/PFA/4, paragraph 29, as amended by the Governing Body)