Abdeh Tabrizi: People's Resilience Has Decreased, Wages Must Increase in Line with Inflation

A former advisor to the current president pointed out the livelihood crises of workers, stating that the government of Masoud Pezeshkian has no choice but to increase the minimum wage of workers in accordance with the inflation rate. He noted that 'people's resilience has severely decreased' and if conditions do not change, 'serious social problems' will arise. Hossein Abdeh Tabrizi, who was introduced by Masoud Pezeshkian as a member of his economic team during the government election campaign to replace Ebrahim Raisi this year, is now discussing economic problems and the difficulties the government faces in providing wages. Although no official news about his presence in government positions was published after the elections, he is still considered close to the government's economic team. This former official, referred to by the media as a 'capital market expert,' outlined four main approaches for determining the 'minimum wage for workers' currently under consideration by the Supreme Labor Council. He summarized the opinions of workers, employers, and the Ministry of Labor, stating: 'These four approaches are an increase in line with or above inflation, an increase below inflation, regional differences, and differences based on occupations.' He emphasized that given the economic pressures, wage increases must at least match the inflation rate. Abdeh Tabrizi added that on one hand, people's livelihoods are damaged and 'we must strive to restore wages,' and on the other hand, 'many industries are also facing problems, and increasing costs is difficult for them.' According to him, in some industries, increasing workers' wages may be feasible, but in others, such an increase could lead to closures or layoffs. This economic expert pointed to the accumulation of surplus labor in government institutions and 'privatized' companies, stating that many public and semi-public institutions operate with more personnel than necessary. Some factories have thousands of excess workers with low productivity, 'but their dismissal would also have heavy social consequences.' He added that 'the Iranian economy has not grown sufficiently to absorb this volume of labor.' In many organizations, the salary meant for one person is distributed among several people, resulting in reduced work quality and low productivity. Abdeh Tabrizi also warned that reducing wages in some sectors has led to an increase in informal jobs. He noted that many people have turned to informal jobs because low wages in formal jobs do not meet their living costs. He referred to the impact of reduced purchasing power on markets, stating that stagnant wages have decreased people's purchasing ability, making many essential goods and even housing inaccessible to a large segment of the population. This economic activist warned that if the current trend continues, livelihood problems could have widespread social and economic repercussions. He stated that for this year, 'the government has no choice but to increase wages in line with the inflation rate.' Otherwise, economic pressure on workers will increase, leading to greater social dissatisfaction. Given that Abdeh Tabrizi is considered close to the government's economic team, his remarks about economic crises and the government's difficulties in providing wages indicate the deep problems the Islamic Republic faces in managing the country's economy. Independent experts have repeatedly emphasized that the root of the problems in Iran lies in the inefficiency of the Islamic Republic's governance system and widespread structural corruption, which without fundamental changes, there is no bright prospect for improving the situation. Ongoing opposition to determining workers' wages in a 'guild' manner, multi-hundred million salaries for managers while workers' wages remain undetermined, wages based on guild and province; a union activist: it is detrimental to workers, the 'wage movement' campaign in protest against the determined livelihood basket.