Iran Labour Front: Minimum Wage, "Unprecedent Poverty and Hunger", and Strikes

Jafar Azim Zadeh, the head of the Free Assembly of Iranian Workers, in an interview with Deutsche Welle:

DW: Yesterday, the new Minimum Wage rate was announced. What is your assessment of the rate which is $303 (per month) for the next Iranian year?

Azim Zadeh: The $303 rate, which is an increase of 15 percent compared to the last year, not only will not solve any of the Iranian workers' problems, but compared to the current year rate of $260 will bring greater hunger and destitution for the Iranian working people.

Today in Tehran, $303 does not even pay for the rent of accommdation for a 4-person family. With $303, it may be possible only to pay rent for some periphery locations in Tehran. With food, clothing, health, education, and other expenses, I think the workers will face unprecedented poverty and hunger in the coming year.



DW: Considering that even the $260 was not paid for several months and the owed wages were postponed for the next year, how will the new year look for workers? What effect will this have on their lives?

Azim Zadeh: As I mentioned, setting $303 as the minimum wage will bring unprecedented poverty for workers. Indeed, the poverty and hunger in the coming year can not be compared with even the last couple of years.

Considering the expected high inflation and the ending subsidies, even if the minimum wages are paid on time, this will not take any burdens off the workers, let alone if they are postponed for six months or one year.

As you mentioned, we saw during this year the same low $260 monthly rate, which have been delayed for six months or for even a year. I dare say, the wages for three or four million workers across Iran (especially for those in one- or two-year projects, such as Asalouyeh, Mahshahrpor, and others, who have had their wages delayed) ensure they face very hard times.

Considering the current economic situation, it is expected that not only delays in wage payments will not be curtailed, but in the coming year it will actually increase. In such a situation, it is natural that absolute and unprecedented hunger will be forced on the working class in Iran.

DW: Considering that we are in the final days of the year and workers protests are continuing, what course will these protests take? And if there are to be any compromises between the state and the workers, how will that compromise be brokered?

Azim Zadeh: I think workers' protests will sharply increase in the coming year and spread across the country. As you know, the subsidies are expected to be cut by $20 billion. According to a report by the Parliament Research Office, the inflation rate caused by this cut will be 37 percent. (This is based on the inflation rate announced by the central bank which is 11 percent in the past three months.) All the while the government talks about a "gift" by raising the minimum wages by 15 percent.

It should also be noted that the psychological effect of cutting the subsidies will also increase the rate announced by the Parliament Research Office. Meanwhile, based on our experience of the Iranian economy, in the last 30 years, we have had a nominal increase of 30 percent in the inflation rate.

With the yearly inflation and the 37 percent cuts in subsidies recently announced, and the addition of the psychological effects, the $303 may not even have the buying power of today’s $100.

It is natural for workers to react to such a situation, especially with the chronic economic crisis always at hand and constant wage arrears. The Iranian working class shall not remain silent. Workers' unrest will increase.

On the understanding between the state and the workers, the rate announced today shows that the state and the employers are not at all willing to reach an understanding with the workers. They want to force hunger and poverty on the workers while continuing to enrich themselves. It is natural that the conclusion of such a scenario is the widespread workers protests.

DW: It is reported today that the government was not even able to agree to this 15 percent increase.

Azim Zadeh: Yes, that is true. The Labor Minister in last night's televised interview discussed the 15 percent increase and the 11 percent inflation rate. But the minister did not properly address its own labor law, which states that workers' wages are not to be based on inflation alone but also on the expenses of a family of four.

How is it possible to base the workers wages on this year’s inflation rate when the next year's inflation will be overwhelming for the workers? They are using the inflation rate from March while next year inflation will increase by 20 to 30 percent. Meanwhile, they have completely forgotten their own bases in the law, which is the expenses for a workers family of four.