Observation (CEACR) - adopted 2004, published 93rd ILC session (2005)

The Committee recalls that by communications dated 20 September and 31 October 2002, respectively, the International Confederation of Free Trade Unions (ICFTU) and the World Confederation of Labour (WCL) had submitted observations concerning the application of the Convention, indicating in particular, serious and persistent problems of non-payment of wages, especially in the textile industry, and detailing the different actions taken by unpaid workers in specific textile mills and other industrial plants to protest against the several months delay in the payment of their wages. Both organizations consider the situation prevailing throughout the country to be dramatic; they refer to growing unrest among Iranian workers and they denounce the sometimes violent response of the authorities. Among the many facts and figures reported by the ICFTU and the WCL, the Committee notes that the delay in the payment of wages often varies from three to nine months and may even stretch to two years. It also notes that problems of unpaid remuneration relate to the payment not only of wages but also of unemployment benefits and pensions. In addition, the Committee notes other sources of information, such as UN documents concerning the situation of human rights in the Islamic Republic of Iran, which refer to the critical situation of 1,400 companies, chiefly in the textile sector, and an estimated 80,000 workers who are not being paid.

In its reply, transmitted some two years after the filing of the comments of the two organizations, the Government gives a general overview of the legal remedies provided for in the Labour Code for the recovery of unpaid wages and the settlement of wage claims, and provides some up-to-date information on the current employment situation in some of the textile factories referred to in the communications of the ICFTU and the WCL. The Government does not supply, however, concrete statistics showing the nature and scale of the wage crisis facing the textile industry and possibly other sectors of the national economy, nor its evolution in the past few years.

As the Committee has pointed out on numerous occasions, a proper assessment of the problem is only possible through the systematic collection of statistical data emanating from credible sources. It therefore asks the Government to supply in its next report, documented information on the number of workers affected, the number of textile factories or related establishments experiencing difficulties in the payment of wages, the average length of the delay in the payment of wages, the amount of arrears settled and the outstanding amount of arrears, the number of inspections made and the penalties imposed, and any negotiated time schedule for the repayment of the sums outstanding. The Committee would also appreciate receiving detailed information on any other occupational category or branch of economic activity which may experience similar problems on a large scale.

The Committee recalls that for the past six years it has been commenting extensively on problems related to abusive pay practices and the non-payment of wages affecting a considerable number of countries worldwide, and has been drawing attention to three essential elements insofar as the application of the Convention is concerned: (i) efficient control and supervision basically implying the strengthening of labour inspection services; (ii) truly dissuasive and strictly enforced sanctions against those who take advantage of the economic situation to commit abuses; and (iii) the means to redress the injury caused, including not only the full repayment of the amounts due but also fair compensation for the losses incurred on account of the delayed payment. In this connection, reference may be made to paragraphs 356 to 374 of the General Survey of 2003 on the protection of wages in which various wage debt crises are discussed in light of the obligations arising out of Article 12, paragraph 1, of the Convention. The Committee therefore requests the Government to indicate in its next report the legislative, administrative or other measures, especially regarding methods of supervision and enforcement of national legislation, that it intends to adopt to ensure effectively that wages are paid in full and on time and all wage arrears are settled. It also asks the Government to forward copies of any relevant legal text in this regard.

Finally, the Committee wishes to emphasize, as it was noted in paragraph 366 of the abovementioned General Survey, that the phenomenon of wage arrears is "part of a vicious circle that inexorably affects the national economy in its entirety" and that unless urgent action is taken to contain it before it takes significant proportions, it may spill over to other sectors of the national economy with disastrous social and financial consequences. The Committee accordingly requests the Government to intensify its efforts and exhaust all available means in order to eliminate accumulated wage debts and prevent the recurrence of similar phenomena in the future.