Continued Criticism of 'Regional Wage'; A Labor Activist: The Government Aims to Reduce Workers' Purchasing Power

As the government attempts to implement a regional wage scheme for workers, criticism of this policy continues even from labor organizations recognized by the Islamic Republic. Sadegh Kargar, a labor activist residing in Norway, mentioned in an interview with VOA that the government is trying to reduce wage levels and, in fact, the purchasing power of workers. In this context, a 'worker representative in the Supreme Labor Council' criticized discussions regarding the regional wage plan for workers in Iran on Thursday, February 5, stating: Those who defend this plan, why do they not propose it for employees? According to ISNA and ILNA news agencies, Mohsen Bagheri, in a radio interview, pointed out that the Ministry of Economy is pursuing the implementation of this plan, adding that this ministry claims that wages should be determined differently based on the development of the provinces. He emphasized that contrary to the government's view, the labor law does not specify the boundaries of regions and added: There are ambiguities in the proposed regional wage plan, and it was not approved by us in the Supreme Labor Council. This member of the Supreme Labor Council referred to the meeting on Tuesday, February 2, of the wage committee of this body responsible for determining the minimum wage for workers. Mohsen Bagheri added: It is unacceptable to classify simple workers upon their entry and to differentiate between workers who dedicate 8 hours of their time to the employer, providing different minimum wages to workers in various regions. Additionally, see: Warning about weakening livelihoods next year; wages lag behind inflation rates. According to Khabaronline, although the issue of determining wages regionally had been raised in the past, it was set aside due to high costs. However, under President Ebrahim Raisi's administration, this issue resurfaced, and the Minister of Economy's action and a letter to the Minister of Labor led to the revival of this plan. According to this report, Ehsan Khandoozi, in mid-January, wrote a letter to Soulat Mortazavi, proposing that the wages for 1403 be determined regionally. Following this, the Minister of Labor's support for this issue and the employers' community's welcome led to it being placed on the agenda of the Supreme Labor Council. Supporters of this plan argue that if regional wages are not lower than national wages and if job opportunities and other economic infrastructures are provided in smaller cities, the plan will be successful. However, opponents believe that regional wages will increase migration from smaller cities to larger ones, and labor activists view the implementation of regional wages as a warning bell for further disenfranchisement of workers. In this context, Fathollah Bayat, head of the Union of Contractual and Temporary Workers, stated in an interview with Shargh newspaper published on January 28: 'You cannot sit in Tehran and prescribe for workers in Zahedan. How can you equate the working conditions in Sistan and Baluchestan with its climate and limitations to the work of workers in Tehran and in the center of the capital in Region 6?' He added: 'You can look at the salary slips of managers who go from Tehran or other provinces to areas like Sistan and Baluchestan; how many lines are allocated for job bonuses and benefits and adverse weather conditions? How much financial attention is given to this issue, and for each, a legal clause is mentioned? How much is the difference for a manager in Mashhad or other provincial centers? How can these be calculated for him but not for workers?' Sadegh Kargar, a labor activist residing in Norway, also mentioned in an interview with VOA that this year the government, through a series of new measures such as regionalizing wages and housing allowances and different wages for various industries, along with raising wages below the official inflation rate, is trying to reduce wage levels and, in fact, the purchasing power of workers. Additionally, see: Workers in food poverty; bread and sugar have replaced meat and dairy on the tables. He stated: The government has reduced the purchasing power of employees by 50% with a 20% wage increase, which is half the official inflation rate, and regarding workers, the government intends to reduce wages. In this context, this labor activist assessed the goal of regionalizing wages and housing allowances as 'further reducing wages and housing allowances and in line with the expansion of wage suppression policies and the brutal disenfranchisement of labor.' Mr. Kargar pointed to Soulat Mortazavi's remarks about implementing this strategic policy, adding that 'the intensification of wage suppression policies is being pursued at a time when there is a large wave of protests from workers and retirees, including oil workers, teachers, nurses, and many other wage earners, whose main demand is an increase in wages and salaries generally below the poverty line in various cities.' He noted that on the other hand, living costs are increasing day by day. In fact, the purchasing power and value of wages are diminishing day by day, and living costs are rising, while the cost of urban household expenses is expected to reach 45 million tomans per month. Sadegh Kargar criticized the regional wage plan, believing there is no doubt that its implementation 'will exacerbate wage discrimination, lead to a reduction in wage levels, especially in poorer regions, and increase poverty and deprivation in these areas, weaken the financial foundation of social security, and encourage migration from deprived areas to metropolises.' The discussion of regional wage determination for tens of millions of Iranian workers comes at a time when less than two months remain until the end of the year. The Supreme Labor Council determined the minimum monthly wage for workers subject to labor law, married, and with children at around 8 million tomans last March, which was far from the living costs at that time. Currently, living costs in large cities are estimated to exceed 30 million tomans. Additionally, see: In 15 years; wages increased 20 times, but housing prices increased 45 times. Two clauses of Article 41 of the Labor Law emphasize determining wages based on inflation and living costs. Nevertheless, workers' wages have always been lower than the inflation rate and living costs. The Etemad newspaper on Tuesday, February 3, noted that 'the current inflation trend has remained around 40 percent,' writing: The minimum expectation that workers have for their wages next year is to maintain this figure. This figure means that, according to Etemad, if the minimum wage grows by the current 40 percent inflation, 'workers' purchasing power will remain at the same level as in 1402, which is this year.' Sadegh Kargar, a labor activist residing in Norway, pointed out that 'wages and workers' purchasing power are diminishing while living costs are on the rise,' adding: Wage determination in Iran occurs under conditions where independent labor organizations are banned from activity, and representatives of workers do not directly participate in the Supreme Labor Council, which is the official decision-making body, and some of them are imprisoned. He added: 'Three representatives from Islamic councils and their affiliated associations, which are approved by the government, are present in the Supreme Labor Council, but workers do not consider them their representatives, and their presence has no role or impact on determining wages in favor of workers.' Mr. Kargar also stated that 'the Supreme Labor Council will approve wages, housing allowances, and other components of government policies unless the scope of protests increases to the point that the government feels threatened or a specific situation arises that prevents work.' He emphasized that the decision of the Supreme Labor Council regarding wages should be made according to Article 41 of the Labor Law, and according to this law, the wage increase should not be less than the official inflation rate and the living costs of a three-and-a-half-person household. This labor activist pointed out that this law has never been implemented as it should have been and added: 'Previous governments manipulated the inflation rate and costs, violating the law. However, the Raisi government, in addition to cheating on the inflation rate and household basket costs, has officially and openly circumvented Article 41 of the law since last year and acted illegally.' Sadegh Kargar emphasized that in the current conditions where 'all power institutions have united to suppress and reduce wages, the only force that can prevent the implementation of the government's poverty-inducing policies and serve as a barrier against this rampant assault by the government, which is not limited to wages but encompasses the abolition of labor law to insurance and retirement, is the workers themselves and other wage earners.' He stated: With organized and collective strikes and protests aimed at leading to a nationwide strike, other dissatisfied social groups will join them, and they will succeed.