Economic Toll by Numbers

Iran Labor Report

The economic slowdown and the recession gripping Iran is hitting the working classes particularly hard.

Fathollah Bayat, head of the National Union of Temporary and Contracting Workers, talking with Rahe Daneshjoo, talked about 1,000,000 contracting workers having lost their jobs since the March of this year. According to Bayat, there are 8 million contracting workers currently in Iran. “Most production units in the country are dependent on imported raw materials,” says Bayat. “With increasing sanctions since March and the closure of many production facilities, these facilities are forced to expel their contracting workers.” He added: “Besides expelled workers, those still employed receive their wages once every four months”.

Rouhollah Beigi, deputy head of the economic sub-committee of the Iranian Parliament, talking with the journal Zendegi has stated that an average of 60% to 70% of the factories in Iran have already closed down with the rest facing myriad financial difficulties. “Based on the first-hand reports I have,” said Beigi, “many factories and industrial parks in the provinces including East and West Azerbayjan, Fars, Ardebil,Tehran, etc., have been all but closed down.”

According to Mohammad Javad Nazarimehr, a parliamentary deputy talking with the Iranian Labour News Agency (ILNA), Ahmadinejad should have redirected 10 percent of proceeds from subsidy cuts to the agricultural sector and 30 percent to the industrial sector. Neither has materialized according to Nazari Mehr. According to the deputy, the widespread bankruptcies or near-bankruptcies are occurring because the government has refused to live up to its promises. He added that the sharp increase in the price of raw materials and energy inputs following the axing of the subsidies has created severe difficulties for the industrial sector.

“Ahmadinejad is not paying industry’s share out of the subsidies rationalization scheme,” said Nazarimehr, adding that it has caused industries “to be either bankrupt or on the verge of bankruptcy”. If no action is taken in this regard, “the few remaining industrial units will definitely declare bankruptcy soon”.

According to the parliament deputy, there are 9 million unemployed seeking jobs and the number is increasing.