While wage negotiations were supposed to start in Azar (December), the beginning of these negotiations remains shrouded in ambiguity. However, the review of 'regional wage' has taken place in the Supreme Labor Council, which, according to labor activists, strengthens the likelihood of fundamental changes in the wage determination formula; changes that experts assess as being aimed at 'suppressing wages.' The news agency 'Tasnim' reported that 'regional wage' was on the agenda of the Supreme Labor Council's meeting yesterday and that this issue would be examined in the wage expert committee. Ayat Asadi, a labor member of the Supreme Labor Council, explained that 'the Ministry of Economy is strongly pursuing regional wage and is seeking its approval.' Asadi reported workers' opposition to this action, explaining that 'the reason for our opposition is that the Ministry of Economy does not have a clear plan for implementing regional wage and does not provide any information.' Labor activists believe that the government is employing various methods, including regional wage determination and 'news manipulation' emphasizing 'decreasing inflation,' to suppress workers' wages and keep the increase below 20 percent. Statements from government officials also confirm this claim. In this context, the Minister of Labor in Ebrahim Raisi's government stated in December of this year at a gathering of students at 'Imam Sadiq' University that the 57 percent increase in wages for 1401 (2022) was inflationary and said that if wages had not increased to this level that year, inflation would not have reached 45 percent in 1401. Linking inflation to the level of workers' wages, alongside various officials' emphasis, including the Minister of Economy, the Central Bank Governor, and Ebrahim Raisi's assertion of decreasing inflation, aligns with the government's decision to oppose wage increases of more than 20 percent. It is noteworthy that while official statistics indicate inflation has returned to above 40 percent, Ebrahim Raisi claimed on Friday, December 7, at a meeting of the Society of Teachers of Qom Seminary that 'statistics show inflation is decreasing.' The continuation of rising prices in Iran; families are spending more than last year, a researcher from the Parliament Research Center: two-thirds of the poor cannot escape poverty, issues of livelihood or occupational violations; the prevalence of hourly house rentals, wage lag behind inflation rates over 43 years; workers' purchasing power has decreased by 65 percent, entering the final months of the year with a list of workers' concerns; bans on entry, layoffs, suicide.
Ambiguity in the Start of Minimum Wage Negotiations; Regional Wage Reviewed by the Supreme Labor Council
Negotiations for determining minimum wages in Iran are delayed, while the Supreme Labor Council is reviewing regional wages, which labor activists fear may lead to wage suppression. Workers oppose the government's lack of a clear plan for implementing regional wages, amidst rising inflation and declining purchasing power.
👥 Key Players
📰 What Happened
Wage negotiations in Iran are delayed, and the Supreme Labor Council is reviewing a controversial 'regional wage' proposal that labor activists fear will suppress wages. Workers are opposing the government's lack of a clear implementation plan amidst rising inflation and declining purchasing power.
- The government is pushing for a regional wage system that may lead to lower wage increases.
- Official inflation rates are above 40%, while workers' purchasing power has significantly decreased.
💡 Why It Matters
📚 Background
Iran has been facing high inflation and economic challenges, leading to a significant decline in workers' purchasing power over the years. Wage negotiations are critical in determining the economic well-being of the workforce.
🏷️ Entities Mentioned
Translated from the original and edited for English readers. View original source →
Translation confidence: 85%