Proposal from Some Labor Organizations: Dissolution of Contractor Companies for Workers and Replacement with 'Workers' Cooperatives' to Reduce 'Exploitation'

Some labor organizations in Iran have proposed dissolving 'contractor companies for workers' and replacing them with 'workers' cooperatives' to reduce what they call the 'exploitation' of this economic sector by state institutions. Akbar Shokat, the head of the Supreme Council of Construction Workers' Associations, stated that the discussion of 'contractor companies' arose during a period when the government was seeking to 'downsize.' He told the Tasnim news agency, which is close to the security institutions of the Islamic Republic, that given Ali Khamenei's emphasis on what he calls the 'fight against economic corruption,' it would be better for 'these companies to be eliminated.' He pointed out the existence of 'widespread and structural corruption,' adding that in the labor and employer community, the 'mafia of power and wealth' is palpable, and employers face mafia-related problems in the 'supply of raw materials,' as they are not provided with raw materials at reasonable prices. On May 1 of this year, Ebrahim Raisi, the President of the Islamic Republic, ordered the 'Minister of Labor' to 'quickly eliminate the situation that workers are unhappy with' by 'reforming' the law on contractor companies. Akbar Shokat emphasized the 'elimination of intermediary companies' in the mining and petrochemical sectors, stating that the plan for 'workers' cooperatives to replace contractors' has been pursued for about 14 years so that projects in the oil, gas, mining, petrochemical, and municipal sectors are handed over 'in the form of workers' cooperatives' to 'the workers of those same entities,' not to 'certain specific contractors' whose work is more 'brokerage.' The head of the Supreme Council of Construction Workers' Associations believes that if the plan for 'workers' cooperatives to replace contractors' is implemented, a large portion of economic corruption in obtaining contracts in this area and the 'exploitation' of workers will be eliminated. Ramin Anari, a representative of 'contractual and company workers in the country,' stated on May 2 that 'the approval of the plan will solve many problems,' telling the Ilna news agency that if 'the plan' had been approved, 'the dissatisfaction of project workers would not have become this widespread.' In the plan known as the organization of government employees, based on its provisions, employees hired through 'contractors' will be completely removed from the contracting status, and these individuals will contract directly with the organization or institution and its support department. Although this plan was approved by the Islamic Consultative Assembly, it faced opposition from the Guardian Council and the Expediency Discernment Council of the Islamic Republic. Official and independent unions and associations, as the main authority for protecting workers' rights, do not have the right to operate and enjoy the public rights common in other countries in the Islamic Republic, and over the past four decades, some institutions affiliated with or close to the government have attempted to address some of the challenges of this sector or their demands under the guise of 'labor organizations.' Alireza Navaei, an activist in this field, stated on May 2 in an interview with the Persian section of Voice of America that issues such as 'employer profiteering' and 'indifference of the Ministry of Labor' are the main reasons for the challenges faced by workers, including the high statistics of deaths while performing work.