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January 28, 2025

Be careful, workers are sacrificing themselves. / Pedram Tahsini

According to the inflation reported by the Statistical Center of Iran and the Central Bank, we have extracted the monthly cost of living for a family of 3.3 members until the end of Azar month 1402 (December 2023) to be 23 million and 500 thousand tomans. This was stated by Mohsen Bagheri, the deputy head of the Coordinating Council of the Islamic Council of Tehran Province, in his press conference last year. However, many others have repeatedly spoken about the large gap between workers’ wages and the reality of inflation prices. While efforts were being made to increase the minimum wage until the last working day of the year, in the end, with the absence of workers’ representatives, a 35% increase in wages was announced by the Minister of Labor in the absence of others; a number that was by no means acceptable to workers and their representatives. Nevertheless, it seems that the approved amount was forced upon everyone. This is while in

Currently, workers’ rights have increased by about 35% for the next year and the minimum wage (without benefits) is approximately 7 million tomans. If we calculate this in terms of the 60,000 tomans dollar exchange rate, it is still the lowest wage among countries in the region. This is while according to Article 41 of the Labor Law, the minimum wage should be determined in proportion to two important factors, inflation and the cost of living. Currently, the annual inflation rate, according to the government and the central bank, is at least 40%, and the cost of living, according to labor activists, is around 23 million tomans. The lack of proportion between the minimum wage and these two factors has led to a severe decrease in the purchasing power of low-income households.

On the other hand, housing, by being placed in the category of capital assets with a sudden increase, has become a terrifying and suffocating challenge for the working class and employees, especially for tenants. It is clear that Iranian workers and employees are struggling to provide for their families and facing various difficulties. The alarming growth of housing prices does not fit into either inflation or living standards. There is no economic justification for the uncontrolled growth of the housing sector, except for the presence of mafia groups that have infiltrated sensitive areas and the presence of certain parts of the government, especially banks, whose strong presence in this market is still evident despite being legally prohibited and they are not accountable to anyone or any institution and are not monitored by any regulatory body. It is a forbidden zone where no one can blow the whistle to enter, even if their hands are full of documents and papers.

After the year 1960 and the passing of war and revolution until today, the housing market has undergone many changes. Due to the start of the war in 1979, the severe inflation caused by the war and the country’s reconstruction also affected the housing market. The first period of recession in the housing market in the past 40 years can be traced back to 1991. After that, there was a relative boom accompanied by a slight increase in prices. In 1997, we witnessed another price surge and relative stability in housing prices until 2006. The significant increase in prices in 2006 was the beginning of an upward trend in housing prices in those years. The start of million-dollar prices in the housing market occurred in Iran in 2006. After that, with a gradual slope until 2008, it reached the two million mark and in 2012, prices crossed the three million mark.

In 2007, the housing market faced a sudden increase of more than double the prices compared to 2006. The construction of the Mehr housing project began in the same year. It is impossible to ignore the impact of the Mehr housing on the market. Mehr housing had a positive effect on the market and housing prices, but due to high demand and shortage of construction (supply), the market needs were not met and these effects could not be sustained. By analyzing the housing price chart over the past 10 years, we can see that housing has been experiencing long-term inflation since the end of 2012. Housing prices have not had a constant cycle during this period and have always been on the rise. With the intensification of sanctions in this year, there was a sharp increase in the prices of currency and housing. In the following years until 2016, due to a decrease in inflation, housing prices did not continue to rise. However, in the years 2013 to

In 1401, the average housing price in Tehran was close to 30 million tomans per square meter. From 1403 until now, the average housing price in Tehran has been announced to be between 90 to 100 million tomans per square meter (this is the average price for all urban areas). This growth should also be followed in the rental housing sector. One of the major changes that has occurred in the rental housing market during these years is the change in landlords’ mindset to receive higher rent. In the past, landlords preferred to receive higher down payments. But nowadays, homeowners are more inclined towards higher rent because they usually cover part of their living expenses from these rents. Previously, the down payments for housing were deposited into bank accounts and landlords were sure to receive a good profit. But now there is no guarantee for fixed bank profits. For this reason, most landlords are inclined to receive rent. Every passing month, the value of the down payment decreases and for this reason

With this command, how can a new worker with a salary of 7-8 million tomans find a suitable housing; buying a house has become a dream for many people and workers. The severe inflation in the housing sector also has a significant impact. In addition to this, we must add the lack of job security, decrease in purchasing power, livelihood, expansion of temporary and white contracts, low wages, employers’ abuse of labor laws, and the increase in work-related accidents and violations by employers. You can see that a thick soup of problems has been cooked in the life of a worker, and no one except the worker and his family desires this soup.

The most important issue that has turned workers into a disorganized and disjointed group is the lack of influential and reliable labor unions. All workers’ protests during the years have been limited to short strikes or localized and specific gatherings, usually limited to one factory in a certain area, and have had little impact on achieving their demands. This has only been effective in protesting against a few months of unpaid wages or the closure of an industrial and production unit, which has also been almost completely shut down recently. The High Council of Labor is only present during the time of setting the minimum wage for workers at the end of the year, and for the rest of the year, their only action is issuing useless statements. Their most influential move has been to boycott and leave the meeting, which has had no effect on determining the wage without their presence.

Ultimately, the current situation of rising prices at the beginning of the year and recent events in the international arena that have made the stock market unstable do not paint a bright outlook for the coming months in the stock market. The increase in production costs will lead to an increase in prices, affecting the empty pockets of the people, especially the working class. If until yesterday, the wages of workers were barely enough to cover 10 to 15 days of the month, in the future it may not even be enough for 5 days, and this is not just a dark and gloomy image of the future; a future where the monster of poverty is lurking in all aspects of social life, and it is clear that it will lead to disastrous consequences.

Created By: Admin
April 20, 2024

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