Criticism of the Minister of Labor's 'Innovation' for Wage Determination Based on Occupation Continues

Ali Khodai, a worker member of the Supreme Labor Council of the Islamic Republic of Iran, criticized the Minister of Cooperatives, Labor, and Social Welfare's plan to determine wages based on occupation, calling it 'one of his innovations' and stating that such a plan 'is not feasible.' In this context, Foad Kikhisravi, chairman of the board of the Iranian Confederation of Labor – Abroad, stated in an interview with Voice of America that this plan is 'a clear example of the continuation of the anti-labor policies of the corrupt and repressive regime of the Islamic Republic of Iran' and said: 'This plan is a tool to impose wages far below the poverty line and the livelihood basket of working families.' Recently, Ahmad Midari announced his ministry's decision to determine wages based on occupation, which has drawn widespread criticism from labor activists and organizations and is even contrary to two clauses of Article 41 of the Labor Law. He stated: 'Article 141 has given us the authority to determine wages based on the type of jobs and occupations, and our strategy is to move in this direction to determine wages based on occupations.' The Minister of Labor's statements, which have so far been met with silence from Masoud Pezeshkian, were made at a time when the two clauses of Article 41 of the Labor Law emphasize that workers' wages should be determined based on the inflation rate and the cost of living for a household. Despite this, the Supreme Labor Council of the Islamic Republic of Iran has consistently refrained from considering the second clause of Article 41 of the Labor Law for determining workers' wages. Ali Khodai told Tejarat News: 'Determining occupational wage rates is one of the innovations of the Minister of Labor, and until now, such a thing has not existed and is not feasible. The matters the minister referred to are contrary to the law and his area of authority, and we hoped the ministry would correct them.' Regarding the impracticality of this plan, he said: 'The issue of occupational wages is not feasible for two reasons; first, there is no wage under the title of occupational wages. The second reason is that when wages are determined nationally, no group or entity is allowed to set a wage lower than that.' Khodai also referred to the method of 'regional wage determination,' a method in which the wage rate in each region is determined based on the inflation rate and the economic situation of that region. He added: 'The Labor Law refers to regional wage determination, but in numerous meetings that the labor union had with employers and government representatives, the outcome was that the government structure of the country and the existing infrastructure are not at all ready to determine any type of wage other than the national wage.' He further stated: 'Determining wages is not just an economic issue; it is also a political and social issue. While the type of government in the country is national, regional wages are for countries that are federally governed. This type of wage determination is a naive imitation by some individuals who are exacerbating this issue.' He said: 'Moreover, various studies have shown that determining different wages in different regions leads to results; therefore, it was decided that regional wage determination is not feasible.' In this context, Foad Kikhisravi, chairman of the board of the Iranian Confederation of Labor – Abroad, stated in an interview with Voice of America that the 'occupational wage' plan is 'a clear example of the continuation of the anti-labor policies of the corrupt and repressive regime of the Islamic Republic of Iran' and said: 'This plan aligns with previous ideas of regional and provincial wages, serving as a tool to impose wages far below the poverty line and the household livelihood basket, aimed at weakening worker solidarity.' Kikhisravi further explained: 'This plan benefits large industries, such as petrochemicals and steel, which, by limiting and nominally increasing wages – for example, 20 percent against the workers' demand for 50 percent – both suppress protests and present themselves as generous, while smaller industries only approve a 10 percent increase.' Foad Kikhisravi stated: 'The Islamic Republic is a plundering and anti-labor regime that has targeted the livelihoods of workers, and only by changing this corrupt structure can we approach wage justice.' He emphasized that 'this gap provides justification for large employers to evade the real demands of workers. On the other hand, low-profit industries, such as textiles and agriculture, cover their survival costs from the pockets of workers by reducing wages; a policy that acts as an indirect subsidy from the pockets of workers to employers.' The chairman of the board of the Iranian Confederation of Labor – Abroad added: 'This discrimination undermines workers' bargaining power across the labor market and shifts wealth in favor of large capitalists. Moreover, creating wage disparities among occupations makes common demands and united protests impossible, and this is precisely the regime's strategy to prevent collective resistance from workers.' He stressed: 'The only way out of this situation is the independent organization of workers and nationwide protests. The Islamic Republic is a plundering and anti-labor regime that has targeted the livelihoods of workers, and only by changing this corrupt structure can we approach wage justice.' Kikhisravi referred to Article 41 of the Labor Law, stating: 'Although this article is inadequate and has structural shortcomings from the perspective of independent activists, it mandates the determination of minimum wages in accordance with the inflation rate and the fulfillment of household needs. However, Midari and government agents in the Supreme Labor Council, like their predecessors, deliberately circumvent this article to suppress the minimum wage and subsequently even eliminate it for some occupations.' This labor activist emphasized that the Supreme Labor Council is 'an illegitimate and completely unrepresentative body formed by representatives of the government – the largest employer in Iran – private employers, and so-called labor representatives who are, in fact, regime puppets assigned solely to justify the suppression of workers.' He added: 'The government, as a dominant employer, prioritizes its own interests and those of dependent capitalists over any form of wage justice.' Meanwhile, as the government and employers continue to attempt to prevent the 70 percent minimum wage increase demanded by workers for the coming year, the newspaper Hamshahri reported on March 5 that 'the lagging wages of workers are the result of several years of wage suppression, which has caused the minimum wage parity rate to fall from over $200 to below $100, and the message of this event is clear: workers' increasing inability to cover living costs.' The newspaper added: 'Official statistics confirm that the decline in workers' purchasing power has made new labor reluctant to work, and many economic enterprises, especially in the industrial sector, are facing labor shortages or challenges in retaining them. This issue was also evident in the recent report from the Statistical Center of Iran on labor market developments.' Hamshahri wrote: 'In this situation, the government and employers have two options: to persist in increasing the minimum wage by about 30 to 35 percent or even 40 percent at the cost of continuing to weaken workers and the exit of productive labor from the economic cycle, or to enter a more logical process of restoring workers' purchasing power by increasing wage percentages higher to help the main pillar of production and improve workers' welfare.' The newspaper emphasized: 'Everything depends on the choice of the government and employers.' Currently, the minimum wage for married workers with children under the Labor Law, including benefits, is 10 million and 900 thousand tomans. This is while the same amount is not paid to workers who are not covered by the Labor Law. The 10 million and 900 thousand toman wage is paid while Hossein Habibi, a member of the board of the Supreme Council of Islamic Labor Councils of the country, announced on March 4 that 'the total cost of living considering rent and living necessities is 70 million tomans.' The decline in the purchasing power of workers, retirees, teachers, nurses, and other salary earners in recent years has led to widespread protests in various regions of Iran. The Islamic Republic has intensified security and judicial crackdowns in response to these growing protests, but this policy has not yielded results for the government. Jafar Azimzadeh: The minimum wage of workers has been kept frozen against inflation. Support from a group of workers at the South Pars Gas Complex for the campaign to increase wages by 70 percent. The suppression of workers' wages in Iran and the widening wage and livelihood gap under the shadow of the Islamic Republic. A labor activist: The cost of living for a household is 70 million tomans a month. Abdeh Tabrizi: Wages should be increased in accordance with inflation. Continuing opposition to determining workers' wages based on 'occupation.' Increasing retirement age; labor organization: an assault on the livelihoods of millions of workers.