Wages Based on Industry and Province; Union Activist: It Harms Workers

Ahmad Midari, the Minister of Cooperatives, Labor, and Social Welfare, announced on Thursday, March 9, that next year's wages for workers will be determined "by industry and province" and stated that the wages are likely to be finalized next week. Meanwhile, a union activist in an interview with Voice of America deemed the consequences of determining wages in this manner to be detrimental to workers. According to ISNA news agency, Ahmad Midari claimed that "we are more focused on industry-based wages" and asserted that "regional wages have problems, but industry-based wages are feasible, and we give provinces the authority to negotiate with an industry to accept a specific rate for that province if they reach an agreement, meaning a combination of industry and regional considerations will be taken into account." The Minister of Cooperatives, Labor, and Social Welfare of Masoud Pezeshkian's government stated that since working conditions vary across different industries, it is incorrect to determine the minimum wage based solely on the minimum cost of living and inflation; instead, it should be based on the level of difficulty of work in various industries. He mentioned in an interview with the Islamic Republic of Iran's television that this initiative will start next year from the mining sector. Ahmad Midari also discussed the government's proposal for the 2025 wage, stating that no discussions have been held in the government so far. He added, "Our effort is to move towards the law which states that wages should be determined based on the basket of living and inflation rates, but how close it will be to inflation is under review." Sadegh Kargar, a union activist in Norway, commented on Ahmad Midari's statements to Voice of America, saying, "Midari's plan actually contradicts two clauses of Article 41 of the Labor Law, which states that wage increases should be tied to inflation and the cost of living basket," and added, "The government is essentially looking for an opportunity to eliminate the determination of minimum wage by the Supreme Labor Council and make it dependent on agreements between workers and employers." He pointed out that last year, government and employer representatives alone decided on wages and raised them 20% less than the official inflation rate, emphasizing that "industry-based wage increases are actually aimed at lowering the general wage level." Kargar further stated that "the inadequate increase in wages is part of the regime's main policies, and whoever becomes Minister of Labor from any faction must pursue it," adding, "This trend has been in place for years, and there is no difference between Midari, a reformist, and Solati, a supporter of stability. That is why Midari announces wage increases close to the inflation rate." According to this union activist, Ahmad Midari's statements indicate that this year's wages will certainly be lower than the inflation rate. The retirees' union also noted on Thursday that the Supreme Labor Council is under the control of employers and the government, emphasizing that "the presence of so-called worker representatives is merely ornamental in the assembly." This union pointed out that "until 2008, the signature of at least one worker representative was necessary for the approval of the minimum wage in the Supreme Labor Council for the resolution to be valid," and added, "However, since that year, this legal requirement has been removed, and the agreement of worker representatives is no longer necessary." As a result, the minimum wage can be approved solely with the signatures of government and employer representatives, without any regard for workers' opinions. The retirees' union added, "The Supreme Labor Council, which was supposed to be an institution for defending workers' rights, has effectively turned into an anti-labor council where three employer representatives alongside four government representatives can pass any resolution without the need for workers' consent." According to this report, this means that "any decision that serves the interests of capitalists and the government will be implemented, and workers do not even have the right to protest." This union wrote, "In a country where so-called independent employer representatives have effectively merged into the government apparatus, it is natural that there is no such thing as fair bargaining or negotiation for workers. They have neither the right to determine their fate nor the ability to defend their rights." The retirees' union emphasized that "any attempt to protest is also considered a crime" and added, "According to clause 33 of Article 8 of the Administrative Offenses Law, any sit-in, strike, or even attempts to organize such actions are considered violations, and protesting workers can be prosecuted. This means that a worker dissatisfied with their minimum rights and destroyed livelihood not only cannot strike but cannot even think about striking." The retirees' union wrote, "This means the absolute deprivation of labor rights, stripping workers of the most basic tools for self-defense, legalizing repression, and imposing conditions where workers are nothing but cheap and silent labor power." Meanwhile, Meysam Zahorian, a member of the Economic Commission of the Islamic Consultative Assembly, announced on Thursday that a letter from 150 representatives of this assembly has been sent to Masoud Pezeshkian for increasing workers' wages in 2025 based on inflation rates and living costs. According to the website "Eghtesad Online," this letter refers to the necessity of implementing two clauses of Article 41 of the Labor Law, stating that the Supreme Labor Council is obliged to determine the minimum wage based on these criteria every year. This letter comes at a time when the Supreme Labor Council determines the minimum wage every year without considering the monthly living costs of a working-class household. Additionally, according to several labor activists, the inflation rate announced by the Iranian government's institutions is distorted. In the letter from 150 members of the Islamic Consultative Assembly, it is noted that "the real purchasing power of the country's wage earners has decreased," stating, "As a result of this incorrect process and the unlawful decisions of the Supreme Labor Council since 2017, the purchasing power of the legally approved minimum wage has decreased by more than 30%, which also applies to retirees." The decrease in the purchasing power of workers, retirees, teachers, nurses, and other wage earners in recent years has led to widespread protests in various regions of Iran. The Islamic Republic of Iran has intensified security and judicial crackdowns to counter these growing protests, but this policy has not yielded results for the government.