Every year and at the last month of the Iranian year, according to a traditional plan, a committee composed of the representatives of employers syndicate, labour’s syndicate and Labour Ministry decide about the next year’s new minimum wages. For this year this decision making turned to a great conflict.
Since last days of February the wage committee started to work and decide about the new year’s wages. Normally each year in the past the challenges were about increasing the new wages almost based on the point-to-point average inflation rate determined by the Central Bank of Iran (CBI) and the figures were usually around 10-15%. However, this year, another story affected the new wage challenges; COVID-19.
Although at the starting session of discussions the attack of the coronavirus had started in Iran, but as we mentioned before (Click Here) there still was not any public awareness in Iran, and so, negotiations continued due to request of the labour’s syndicate for more increase in offered rate by employers syndicate.
As soon as the next sessions started, the COVID-19 had hit the country with the first results being a doubled consumer product prices. This lead the labour syndicate to ask for at east 40% increase in the minimum wages for this year. Something that had never been asked during last 40 years of revolution. This request raised a great conflict between all sides.
The employers’ side challenged that, such an increase will collapse the capitals of companies and factories that are already have been shut down by the attack of COVID-19. The Government side was anxious of the effect of a huge increase over the Government employees which their salaries is increased only 15% for the new year. The labour side was challenging that even by such an increase the level of minimum wages will still remain under the poverty line.
These challenges continued till the end of the year without any outcome and for the first time within last 4 decades the work force started the year without knowing that how much may receive at the new year.
The meetings continued after the new year’s holidays and under tough atmosphere of the COVID-19. After several other meetings and finally at the 3rd week of the first month of the new year, the “Supreme Labour Council” at its 282th meeting approved 36.5% increase in the minimum wages of the workers in Iran.
According to this decision that the Labour syndicate representatives didn’t sign its final draft (another record in the labour history of Iran) the minimum wages of the workers will increase to Rls. 1,516,882 (equal to about US$ 102) per month.
We doubt if with such a decision at the present situation that is under the shadow of COVID-19 many companies and factories can continue to work, the work force can suffer doubled prices of the consumer goods, and in one word the country’s economy can withstand the collapse. We have to wait and see.
