From teachers to refinery workers, discontent is growing over wages and working conditions. Energy and the economy slow down the prospects for recovery in a country, on which Western sanctions already weigh. The cost of essential goods and services has increased by 40% in recent months. Pressure grows on Pezeshkian’s government.
Tehran () – In Iran, the protest of exasperated – and impoverished – citizens due to the high cost of living combined with the increasingly meager purchasing power of salaries is spreading. Workers are demanding better wages and employment conditions, while the energy and financial crisis undermines the recovery prospects of Tehran, which is also involved in several conflict fronts in the Middle East, both in Gaza, Lebanon and Yemen, against the Israeli “enemy.”
In recent days, workers at the South Pars Gas Complex refinery in Asaluyeh, the nerve center of Iranian natural gas production in the Persian Gulf, met to raise complaints related to late payments and unsatisfactory economic conditions. At the same time, some retired teachers and professors gathered in front of the presidential headquarters in the capital, joining the protests and discontent that have become increasingly frequent in recent months. Protesters voiced their grievances with banners showing the disparity between the Islamic Republic’s resource wealth and its economic difficulties.
The oil and gas sector has increasingly replaced regular employees with contract workers, exposing them to poor conditions and inadequate wages. Workers are not only asking for raises, but also for better accommodation conditions in dormitories and safety measures in workplaces. “The protests [del 26 de noviembre] “They are of great importance, because they summoned employees from 12 refineries in the Pars complex, in a strong demonstration of solidarity against the authorities,” unionist Sattar Rahmani declared to Iran International TV.
Nurses and healthcare workers also staged protests, beginning with the large-scale strike that affected some 50 cities and 70 hospitals in August. Their demands include better salaries, updated nursing rates, overtime pay, and compliance with social benefits. Despite constant efforts, most of their complaints have gone unanswered due to the government’s significant budget deficit, which is estimated to exceed 50%. Many workers in Iran survive on a monthly income of around $200, which does not even cover the cost of daily living.
On the other hand, the Islamic Republic is also facing a serious energy crisis. Last summer there were numerous power outages that halved industrial electricity supplies and caused widespread blackouts. And now, signs of a serious gas shortage for the winter have set off alarm bells. Natural gas production growth has slowed significantly, primarily due to the aging of the South Pars field, which is responsible for 75% of total production. That decline, combined with US and Western sanctions limiting access to advanced technologies, has aggravated the situation, while the production growth rate over the past three years is a third compared to the previous decade.
At the same time, the cost of essential goods and services has increased by at least 40% in the last four or five months, according to data contained in a report recently published by the Iranian Labor News Agency (ILNA). The escalation of inflation is trapping citizens in a deepening crisis, which goes hand in hand with the increase in the cost of living. Rising prices, related not only to inflation but also to the elimination of government price controls, have left families struggling and unable to cover housing, food and utilities. Iran’s Statistics Center recently reported that urban rental prices increased by around 42% in the 12 months to November 2024, compared to the same period a year earlier. In November alone, rents increased by 3% monthly and by 40% compared to November 2023.
Trade unionist Faramarz Tofighi underlines the seriousness of the current crisis and states that “this level of inflation is unprecedented in the entire history of Iran.” He describes the situation as a “plunging of working families into the black hole of the livelihood crisis”, without the Government having so far managed to remedy it. Recognizing the seriousness and magnitude of the challenges, President Masoud Pezeshkian spoke on November 22 of “major imbalances in the water, electricity, gas and environment sectors, some of which are on the brink of disaster.” . The skyrocketing cost of essential goods has forced many to cut back on essential expenses, such as food and healthcare. The inflation crisis, long aggravated by international sanctions and economic mismanagement, shows no signs of abating, and Pezeshkian’s government faces increasing pressure to find solutions.
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