Over 70 days have passed since a critical amendment to Iran’s labor law was supposed to take effect. This amendment, enshrined in Article Seven, mandated employers to convert the contracts of project workers into permanent positions. However, implementation remains elusive, leaving two million workers in a precarious state of job insecurity.
The issue was brought to light by the Etemad newspaper in a report titled “Two Million Project Workers Face Continued Job Insecurity.” The report delves into the reasons behind the employers’ reluctance to comply with the amended Article Seven.
Approved by the Council of Ministers on February 9th, 2024, the amendment established a four-year limit on non-continuous employment contracts. Note 1 of Article Seven, slated for implementation on the same date, aimed to bring clarity to the contractual status of countless project and company workers. This, in turn, would have provided them with the security and benefits associated with permanent contracts – a long-awaited taste of stability.
Fathollah Bayat, head of the Union of Contractual and Contract Workers, underscored the significance of the amendment in a February 3rd, 2024 statement. He stressed that workers whose employment extends beyond four years should automatically qualify for permanent contracts.
Two and a half months later, Bayat expressed his disappointment in an interview with Etemad. He indicated a complete lack of progress, suggesting that employers are disregarding the law. Bayat emphasized the transformative potential of this regulation: extensive job security for a significant portion of the Iranian workforce. He further argued that the practice of issuing short-term contracts (six months, three months, one year) for jobs exceeding four years should be deemed illegal.
Prior to the amendment’s implementation, labor activist Ehsan Sohrabi highlighted the crucial role of the Ministry of Cooperation, Labor and Social Welfare (MoCLSW) in enforcing the new regulation. Speaking to ILNA news agency in January 2024, Sohrabi stressed the need for the government to demonstrate a genuine commitment to implementing such laws – a commitment that, according to him, remained unseen.
Bayat echoed these concerns, pointing to a lack of serious resolve within the MoCLSW, particularly among the Minister and his deputies. He further contended that the dominance of pro-employer and capitalist perspectives within the government and parliament hindered the implementation process. Bayat believes that a more worker-centric approach would have resulted in clear communication of this legal requirement to labor offices nationwide within the past two months.
The labor activist painted a stark picture, highlighting how job insecurity plagues over 95% of Iranian workers due to the prevalence of illegal contracts. He argued that this widespread insecurity contributed to production challenges and economic stagnation. According to Bayat, the volatile state of the Iranian rial poses significant difficulties for employers, particularly in procuring raw materials. He highlighted the impredictable economic climate that hinders employers’ ability to plan for the future. In this environment, where the price of imported raw materials fluctuates wildly, Bayat contends that employers face a difficult situation.
Beyond job security for individual workers, Bayat further noted the lack of protection for worker representatives such as trade union members. He explained that worker representatives on dispute resolution boards risk dismissal or contract termination if they disagree with the employer’s views.
This disregard for worker rights comes against a backdrop of repeated protests across Iran. Workers have consistently voiced their discontent with temporary contracts and their precarious living and legal status. Unfortunately, these protests have largely fallen on deaf ears.
The Iranian regime’s failure to address these labor demands and the consequent protest gatherings coincide with reports in some media outlets and by analysts. These reports detail a potential stagnation in critical industries like steel and petrochemicals. The decline in investment rates, the suspension of projects, and the unprecedented drop in the stock market index are all viewed as potential indicators of recession.
In conclusion, the amended Article Seven in Iran’s labor law holds the promise of long-awaited stability for millions of workers. However, the lack of implementation creates a climate of uncertainty and discontent. Unless addressed swiftly and decisively, this situation carries the potential to exacerbate existing economic challenges in Iran.
