Economic recession fuels labor protests as energy crisis looms in Iran

Protests are intensifying across Iran as workers demand better wages and improved working conditions amidst the country’s financial crisis and energy shortages.

On Tuesday, refinery workers at the South Pars Gas Complex in Asaluyeh, a nerve center for Iran's natural gas production on the Persian Gulf, gathered to address grievances tied to delayed wage payments and unsatisfactory economic conditions.

Simultaneously, retired educators rallied outside the presidential office in Tehran, continuing demonstrations that have become frequent in recent months. Protesters voiced their frustrations, with banners highlighting the disparity between Iran’s resource wealth and their economic hardships.

They chanted slogans including, "Iran, a land of wealth, what has become of you?" as around one third of Iranians now live below the poverty line.

The oil and gas sector has increasingly replaced regular employees with contract workers, exposing them to precarious conditions and inadequate wages. Workers not only seek immediate improvements in pay but are also advocating for better dormitory accommodation and workplace safety measures.

"Tuesday's protests hold significant importance as workers from 12 refineries within the Pars Gas Complex united, demonstrating a powerful display of solidarity against the authorities," Sattar Rahmani, a workers' activist, told Iran International TV on Tuesday.

"While permanent employees struggle with minimal facilities, contractors face even harsher conditions, grappling with uncertainty about their future employment," he added. "The lack of a dependable and robust union to advocate for their rights exacerbates their plight, leaving them vulnerable and under immense pressure."

Nurses and healthcare workers have also been staging protests, including a large-scale strike in August involving around 50 cities and 70 hospitals. Their demands include higher wages, updated nursing tariffs, overtime pay, and the fulfillment of welfare benefits. Despite their consistent efforts, their grievances remain largely unaddressed due to the government’s significant budget deficit, estimated to exceed 50%. Many Iranian workers survive on monthly incomes of approximately $200, not even meeting the daily cost of living.

Iran has seen a surge in labor protests, with 428 recorded between April 2023 and April 2024, according to the Human Rights Activists News Agency (HRANA). Workers are grappling with issues such as delayed wage payments, low salaries, arbitrary layoffs, and privatization’s adverse effects.

Adding to these challenges, Iran is facing a severe energy crisis. This summer, the country endured power outages that halved industrial electricity supplies and caused widespread blackouts. Now, warnings of a severe gas shortage this winter have raised alarms. Parliament Speaker Mohammad Bagher Ghalibaf urged immediate measures to mitigate the crisis during a review of seasonal power and fuel shortages.

Iran’s natural gas production growth has slowed significantly, mainly due to the aging South Pars gas field, responsible for 75% of the country’s output. Natural declines, coupled with sanctions restricting access to advanced technology, have exacerbated the situation. The production growth rate over the past three years is now a third of the pace seen in the previous decade.