Contracting Companies: An Endless Challenge for Workers; From Job Security Threats to Inefficiency in Job Classification

The crisis of livelihood and the inefficacy of government regulations and policies to meet the needs of various labor sectors in Iran have led to dissatisfaction and labor protests becoming a significant part of daily news. In this context, the role of contracting companies, which have acted as intermediaries between workers and employers for several decades, has become a problem that has involved various sectors. In one of the latest developments, contract workers in the country's electricity generation sector have called on the Minister of Energy of the Islamic Republic to facilitate the 'elimination of contracting companies.' According to media reports in Iran and claims by contract workers in the electricity generation sector, 'the experience of years of contractors' presence in the Ministry of Energy has shown that contracting managers not only have no impact on the electricity generation process but can actually become a factor threatening workers' job security.' In recent years, a plan named 'Organizing the Employment of Government Employees' was approved by the parliament, which, if finalized, could take a step towards limiting contracting companies, but this plan has ultimately 'remained dormant.' Workers have repeatedly warned about the inefficiency of contracting companies in providing the minimum needs of workers and have expressed their protests. According to many labor activists, 'eliminating contractors would establish justice in salary and benefits payments and increase workers' motivation to work.' In another report, several contract workers from the 'Operation of Karun Large Irrigation and Drainage Networks' company in Khuzestan province criticized the implementation of the 'Job Classification Plan' in this service unit. According to ILNA news agency, some of these contract workers have claimed that despite the implementation of the Job Classification Plan since last Esfand (February-March), 'there has been no change in their salary increases.' ILNA reported that 'the income of the 150 workers in this company has increased by a maximum of one million tomans.' These workers have pointed out that 'the income of workers is not enough to secure their livelihood' and therefore demand 'a proper review in the implementation of the Job Classification Plan.' Workers' concerns are not limited to meeting their current living needs; many of them are also engaged in discussions about retirement. In this regard, 'contract workers' in 'hard and hazardous' jobs have also expressed their concerns about 'the hardships of early retirement.' ILNA published a narrative from a worker named 'Ali' who is both struggling with contractual issues with contracting companies and has retirement concerns. According to ILNA, 'Ali' is a worker employed in a steel factory who stands by the furnace, but his contract is with a contractor, and he has only a few years left until his early retirement. According to this report, this worker has previously worked with three other contractors, and now, 'there is no news about their situation; he does not know where they are and how he can reach them.' In early June, the Ministry of Labor's Labor Relations Department issued a directive stating that the 'parent employer' has no responsibility regarding the 4% early retirement of workers in hard jobs, and the worker must find the former contractors himself and claim this 4% proportionately from each of them. Ali considers this directive 'an injustice' to workers and says: 'Now a worker like me, who has long planned for retirement and arranged all his plans accordingly, what should he do?' Protests over livelihood issues in Iran continue while news sources have reported that the Islamic Republic government has not only failed to control inflation but has also broken an 80-year record of inflation rates, which has risen above 52%.