The third meeting of the Supreme Labor Council on setting the wage raise in the current Iranian year (March 2020-21) concluded on March 19 without an agreement among the representatives of workers, employers and government officials, including Minister of Cooperatives, Labor and Social Welfare Mohammad Shariatmadari.
“Decisions concerning the annual pay growth must serve the interests of workers and employers,” Asghar Ahaniha, the representative of employers in the council, said.
Noting that the council’s meetings must be postponed to a future date after overcoming the current coronavirus crisis, he added that employers had put forward a 15% wage raise during previous meetings of the council whereas representatives of workers have proposed unrealistic figures without taking into consideration the economic situation and problems.
“However, we believe that given the outbreak of coronavirus and fear of job losses, particularly in small enterprises, the determination of wage rates must be delayed. Surveys show small enterprises are not in for a high pay increase; inappropriate decisions will hurt employment seriously,” IRNA quoted Ahaniha as saying.
Ali Khodaie, workers’ representative at the Supreme Labor Council, said according to Iran's Labor Law, workers’ wages must be based on the inflation rate and living wage, i.e. the minimum income necessary for workers to meet their basic needs.
“The living wage set for the current year is 49.4 million rials [$299 per month], which is 11.8 million rials [$71.5] more than last [fiscal] year [March 2019-20]. We, the representatives of workers, believe that wage negotiations failed because the government and representatives of employers took no heed of the labor law,” he said.
“For them, the economic situation and the ability to pay are the main criteria when it comes to determining wage. Workers’ representatives don’t agree with the 20% rise offered by employers and the government.”
