Individual Case (CAS) - Discussion: 2007, Publication: 96th ILC session (2007)

A Government representative stressed the importance of the Convention and the fact that non-payment of wages constituted a threat to the public interest, and had an immediate bearing on the lives of workers. Delayed payment of wages was at times experienced in certain sectors of the economy contrary to the letter and spirit of the Convention. Since the Conference Committee had first addressed this issue in June 2005, the Government had been vigilant in ensuring that every worker in the country received their salary as regularly as reasonably possible and would continue to do so.

The Government also emphasized that the Committee of Experts was obviously satisfied with the three-day technical assistance mission to the Islamic Republic of Iran and had reached a better understanding of the labour realities. The mission of April 2006 had been held in a true spirit of openness and good will and had permitted a clear and objective appreciation of the nature, scale and causes of the wage difficulties experienced in certain sectors of the economy. Furthermore, the Committee of Experts had noted that even though irregularities continued to occur, the problem was tackled rather satisfactorily by the Government and the judiciary, and there was no evidence that the country was faced with a widespread wage crisis, or a non-payment of wages culture.

The Government further maintained that although globalization offered extensive opportunities for development, it was not progressing fairly and evenly and had caused inequalities within and among nations, threatening employment and living standards in many developing countries including the Islamic Republic of Iran, and leading to a problem of back wages, large waves of job losses and the most regretable closure of plants.

Article 3 of the Constitution obliged the Government to plan and implement viable policies to eliminate poverty and deprivation, and provide social security for all. The Labour Code also emphasized fair minimum wages, which were fixed by the tripartite Supreme Labour Council according to article 41. More than 50 articles dealt with wage issues in the Labour Code, thus indicating the importance attached to this issue. The decisive steps to improve law enforcement against violations of the Convention included an effective system of regular and unannounced labour inspections. Some 5,000 wage inspection missions had been conducted in 2006 and over 100,000 regular and 200,000 random inspections had been conducted during the same period to monitor payment of wages. The Ministry had received almost 100,000 complaints and meticulously examined them all; 130 labour inspectors had been recruited in addition to the 624 who already conducted inspections, and another 600 were to be recruited by the end of the year, thus doubling the number of labour inspectors in less than a year. Meanwhile, the Ministry also embarked on a rather extensive integrated labour inspection data collection web-based system, for which it required the most immediate ILO technical assistance.

The settlement of disputes was addressed through the Labour Council at enterprise level, and trade unions and legal representatives of workers and employers. In the absence of an amicable solution, the case could be examined and settled in the Reconciliation Council of the Labour and Social Affairs Office. At the discretion of the complainant, the claim could be heard and settled by the Disputes Settlement Board, the rulings of which were binding and executed by courts of justice. Any infringement of the workers' right to payment of wages and other benefits constituted an offence subject to penal proceedings and punishment. Employers who did not implement the ruling of the Disputes Settlement Board were subject to a fine of between 20 and 200 times the minimum daily wage of the worker, depending on their financial condition. In accordance with Article 11 of the Convention, workers were treated as privileged creditors in case of bankruptcy or judicial liquidation of an undertaking, and wages due to them were paid in full before ordinary creditors.

The problem of back wages was most evident in the textile sector where more than 64,000 workers were employed in 132 textile mills. Among them some 16,000 workers enjoyed the benefits of early retirement due to the nature of their hard and hazardous jobs. More than 15,000 workers had been made redundant upon their consent with severance pay. Almost 12,000 workers had chosen to rely on the unemployment fund. Almost 5,000 workers had been reinstated after structural adjustment in their plants. In the context of the new bill on tough and hazardous jobs, more than 80,000 workers had asked for early retirement after 20 years of service.

Thirty-one per cent of 3,000 affected workplaces had serious financial problems in 2006. In order to ensure their sustainability, retain employment and ensure payment of wage arrears, the Government implemented an integrated policy, including industrial planning and policy advice on human resource strategies, advice and assistance in the area of technological innovation, advice on organizational improvement, planning and improvement of in-service training, allocation of financial resources to affected workplaces, allotting 20 per cent of bank loans to small and medium-sized enterprises (SMEs), re-employing workers on unemployment benefit, etc. Because ageing equipment was one of the main problems in many plants, the Ministry along with the Social Security Organization, based on section 1, paragraph 2, of the Unemployment Benefit Act provided legal protection to workers whose plants were under reconstruction and renovation, so that workers of these plants could rely on the unemployment fund until renovation was completed and the workers reinstated. This protective policy had covered approximately 250 production units in 2006 and over 4,000 jobs had been saved.

To renovate textile, garment and leather industries, 560 new plants had received aid and nearly 12,000 jobs had been created in 2006. To help textile mills on the brink of total collapse, the Ministry of Industries and Mines had taken a variety of measures to redress their technological problems.

Concerning the unemployed, the Ministry in cooperation with the Social Security Organization had provided unemployment benefits to more than 150,000 workers in 2006 only. Out of this number, more than 15,000 workers had been re-employed, almost 30,000 attended retraining courses and almost 4,000 had been sent to adult education schools. Large and medium industrial and agricultural enterprises negatively affected by globalization had also been protected by the Government through a mechanism which might provide them with the required financing or rescheduling of their debts. In 154 enterprises almost 40,000 job opportunities had been retained in 2006. A comparative study within the last two years revealed that while the demand of such enterprises for credit had increased by 18 per cent, the number of their protected workers had been reduced by 31.8 per cent, which was a good indication of the success of the policy.

The Employer members thanked the Government for the information provided, including information on the measures taken to apply the Convention, and trusted that the same would be made available in writing. The 2003 General Survey on the protection of wages, they remarked, stated that the purpose of the Convention was to ensure regular payment of wages to workers, so as to afford them a certain level of certainty and security. The Employer members had already stressed the particular importance of regular payment of wages - an issue touching upon several crucial aspects of the employment relationship. If workers were not paid, economic insecurity, increased informality, general deterioration of living conditions and unfair competition could result.

They noted with interest the report of the Office's technical assistance mission to the Islamic Republic of Iran in April 2006, which found that the Government was endeavouring to reduce the problem of wage arrears. The mission also concluded that there was no evidence of a widespread wage crisis, or of a non-payment of wages culture - either in terms of the number of workers affected or the duration of the delay in wages owed. They observed, however, that the Government did confirm the persistence of the problem of wage arrears, particularly in the textile sector. In this regard they joined the Committee of Experts in stressing the importance of providing the statistical information necessary for an accurate assessment of the issue. In the light of the positive indications contained in the mission report, they expressed confidence that the Government would make this information available.

The Worker members emphasized the essential nature of this Convention for workers' security, the prevention of poverty and the sustainability of their purchasing power. In 2005 this Committee had noted the serious and persistent delays and non-payment of wages in violation of the Convention, and urged the Government to take all the necessary measures to find viable solutions to the crisis and ensure that workers claiming payment of wages were not subjected to threats or violence. The Government had then accepted a technical assistance mission which took place in April 2006. Although it only provided a few points of the mission report's content, the Committee of Experts had expressed some satisfaction on the matter. Nevertheless, the information coming from official press agencies in the Islamic Republic of Iran, or reliable sources either in Iran or other countries in recent months, did not corroborate this as they reported continued non-payment or delayed payment of wages in many institutions. The Worker members listed many specific cases, which illustrated the culture of non-payment and delayed payment of wages and demonstrated that serious violations of the Convention persisted. Moreover, those cases mentioned was only the tip of the iceberg considering the difficulties experienced by the press and the trade unionists.

Serious violations of trade union rights were related to the issue under examination in so far as workers claiming their right to be paid on a regular basis were the object of sanctions. The acts of violence these workers were being subjected to, which had already been denounced in 2005, had still not ceased: police repression of strikes, demonstrations and gatherings, and detentions of trade union leaders. This climate of violence had led to the submission of new complaints to the Committee on Freedom of Association which considered that a strike aimed at an increase in wages and payment of wage arrears clearly falls within the scope of legitimate trade union activities. It is true that the present discussion concerned protection of wages, but this was inextricably linked to the exercise of freedom of association and the right to bargain collectively.

Therefore the Government had to take all the necessary measures to put an end to the culture of non-payment of wages: reply to the requests of the Committee of Experts related to the reinforcement of the legislation and labour inspectorate and the adoption of sufficiently dissuasive sanctions; provide reliable and detailed statistics for examination by the Committee of Experts so they could assess the evolution of the situation; and put an end to the climate of intimidation and fear which existed for workers who sought to defend their rights.

The Worker member of the Islamic Republic of Iran said that the textile sector was an ageing industrial sector which had undergone a process of modernization in order to become more competitive. This process had initially led to arrears in the payment of wages. The passing of a law on this issue had brought stability to the situation. Tripartite dialogue should allow the problem to be totally resolved and respond to the challenges of globalization. Private investments also played a major role in easing social tension. The Government had undertaken, along with employers and workers, a search for a practical solution to the problem. As Chair of the Board of the Supreme Centre of the Islamic Labour Council, the speaker declared that as far as he was aware, no trade unionists had been arrested.

An observer representing the World Federation of Trade Unions (WFTU) expressed gratitude for the opportunity to address the Committee. He stated that for 18 years he had represented the Iranian workers at the Conference, but in the past two years, that right had been denied him by the Ministry of Labour and Social Affairs; he was also the President of the Textile Workers of Iran. He stated that, in 2005, he had expressed concern with violations of the Convention.

The Government representative requested a point of order. He stressed that the subject of today's discussion was the Islamic Republic of Iran's implementation of Convention No. 95, not issues concerning freedom of association.

The Worker member of France pointed out that the representative of the WFTU had barely introduced himself before the Government representative had guessed that his statement would concern freedom of association. That was odd to say the least. The Chairperson therefore had to reject his point of order.

The observer representing the WFTU clarified that he was introducing himself, prior to addressing the application of the Convention, but first wished to express his support for the Worker members' statement that the protection of wages was directly linked to freedom of association rights in the Islamic Republic of Iran.

He stated that he had expressed concern regarding violations of the Convention in 2005, and that the Conference Committee's 2005 conclusions on this subject were more critical than this year's comments of the Committee of Experts. He recalled that those 2005 conclusions highlighted the necessity of supplying full and detailed statistical information on the issue of wage arrears as this year's Committee of Experts comment had also noted. However, the Government had yet to provide the requested information. In 2005 he had also suggested that, on top of back wages owed, fair compensation was due to the aggrieved parties for losses incurred as a result of delayed payments. This suggestion, too, had not been taken up by the Government.

He stated that although the measures adopted by the Government had improved the situation to some extent, the problem still persisted. During this year's May Day demonstration, the presence of a large number of textile industry workers was witnessed, including workers of Nassaji Kurdestan, Nassaji Taberestand of Qaiem Shar, Nassaji Mazandaran, and Chiet Sazibehshar. Textile workers from Qazvin province, including workers from Naz Nakh, Farnakh and Mahnakh, had demonstrated in front of the Parliament and the presidential office. These peaceful demonstrations were sometimes met by police brutality, and at times resulted in workplace arrests and the abduction of workers. Offering one example of the country's wage arrears problem, he stated that, in his province of Yazd, the wages of workers of Dorakhshane Yazd Co. and Yazd Fastoon had been in arrears for several months. Additionally, the Baft Balouch company in Balouchestan province, which employed eight hundred workers, had recently shut down without paying its workers their wages for the last four months.

He also noted that a dissonance in the relevant law had placed workers receiving forced unemployment benefits in a difficult situation. Some of these workers were owed back wages, and at the same time were unable to retire under the law concerning hard and hazardous labour, as they were receiving unemployment benefits. He called upon the Government to ensure that these workers were fully compensated.

He underscored that a great deal remained to be done to address fully the wage arrears problem in the Islamic Republic of Iran. First, the Government's complacent attitude towards this issue must change. Second, funds allocated for the creation of new job opportunities should be diverted to those companies facing financial flow problems. Third, workers who were owed arrears should not only receive back wages but also be duly compensated for the losses sustained as a result of the delays in payment. Finally, the recommendations in the Conference Committee's conclusions, including those of 2005, should be duly implemented, particularly the request that detailed information on the wage arrears situation be provided to the Committee of Experts.

The Worker member of Canada stated that the 2006 ILO mission report, referred to in the comments of the Committee of Experts, had expressed satisfaction that the discussions held had permitted a "clear and objective appreciation of the nature, the scale and the causes of the wage difficulties experienced in certain sectors of the national economy". He expressed scepticism with this finding, regretting that he did not have a copy of the mission report to read and assess for himself.

He noted that although section 37 of the Labour Code stipulated that workers must be paid regularly and in full on a biweekly or monthly basis, delayed payments to workers had increased in comparison with previous years. According to the Iranian Labour News Agency, 39,424 workers from 114 different production and services units were owed an average of 7.7 months of back wages. Official reports also showed that there were an average of 50 protests every month, and the overwhelming majority of these were staged to protest the non-payment of wages. In Asalouyeh, half of the workers' wages were in arrears for five to six months, even as they continued to labour under harsh conditions. Additionally, reports indicated that there were many cases in which workers chose not to protest delays in payment for fear of losing their jobs. Clearly the non-payment of wages was widespread and not confined to one particular sector of the economy.

He stated that the minimum wage was another important issue related to the payment of wages. Official reports indicated that 75 per cent of over 30,000 contracting companies in the Islamic Republic of Iran had paid less than the minimum wage to over one million employees last year. The monthly payments of workers in Ghom Tissue Manufacturing, for example, did not exceed 80,000 Toman (US$80), even though the minimum monthly wage last year was 156,000 Toman (US$156). Several companies contracted by government offices also paid less than the minimum wage, or refused to pay overtime or night work compensation. He remarked that there was a growing and worrying trend of responding to workers' wage payment demands with threats and dismissals. Additionally, in some cases workers were being hired on temporary contracts and asked, as was done in the industrial city of Saveh, to sign blank forms.

The speaker asserted that it was impossible to dissociate the lack of respect for the Convention and national laws from the broader issue of freedom of association rights. In this respect, he noted that independent unions in the Islamic Republic of Iran were courageously standing up for their rights, in spite of the efforts of the authorities and illegitimate trade union organizations to repress them. For instance, a teachers' protest was repressed by the authorities, with many of the participants arrested and thrown in prison.

The Government representative emphasized that last year's mission to Iran, which some speakers had commented unfavourably upon, was headed by the Director of the ILO's International Labour Standards Department. He remarked that, although he would welcome a discussion on freedom of association, today's deliberations were limited to issues under Convention No. 95.

The Worker members stressed that already in 2005, this Committee had made a link between the two elements in its conclusions.

The Worker member of Canada offered several other examples of the repression of trade unionists. Mr Mahmoud Salehi, a labour activist, was arrested under murky circumstances and taken to the Sanandaj prison; Mr Salehi suffered from serious kidney impairment and his life was in danger. Additionally, over the last two years, union members employed by the Tehran and Suburbs Bus Company had been subjected to arrests, dismissals, and physical assault. Fifty union activists had been suspended from their jobs for over one year, and union president Mr Mansour Osanloo had been sentenced to five years' imprisonment for carrying out legitimate trade union activities.

He concluded by urging the Government to take the necessary measures to bring its law and practice into conformity with Convention No. 95, as well as to ratify and implement Conventions Nos 87 and 98 as soon as possible.

The Worker member of France highlighted that the impressive number of statistics provided by the Government representative was surprising, considering that the report of the ILO mission had noted the lack of reliable statistics.

The right to regular payment of wages constituted a vital right for workers, which was why sufficiently dissuasive sanctions had to be provided by the legislation and imposed on the offending employers. All sectors were affected by the problem of wage arrears, not only the textile sector but also other sectors including the public sector. The data that had succeeded in leaking out evidenced the persistent and widespread nature of the problem. The conclusion that the problem was limited to the textile industry, which had to confront international competition, was completely unfounded. Workers were paying for the poor management by the Iranian authorities and one wondered how the oil revenues were being used. These should have made it possible to make the necessary investments for the modernization of the enterprises.

The situation was serious and persisted while the State had not found any effective solutions, either in law or in practice, which was extremely alarming. The full exercise of freedom of association would allow for genuine tripartite dialogue which would help in finding a more effective resolution of the issue of the wage arrears.

The Government representative stated that the statistics he had cited in his previous statement made specific reference to the problem of wage arrears. The Government was aware of the problem and would address it by all means at its disposal. Noting the comments made concerning complaints of back-wages owed, he stated that the Ministry of Labour had indeed compiled a considerable list of complaints in respect of back-wages. In response to this problem, the Government had managed to double the number of labour inspectors. It was aware that delays in wage payments worsened poverty, and thus tarnished the dignity of workers. He maintained that the Government had also allocated over US$100 million for the renovation of industries, including textiles. The overhaul of industries would not occur overnight, however. The process required more time. With respect to the Islamic Republic of Iran's contributions to the ILO, he stated that CHF900,000 had been deposited a month before last year's Conference, but sanctions had nevertheless been imposed on the Government for the non-payment of contributions.

He reiterated that the non-payment of wages was a problem the Government admitted to freely and was determined to eradicate. In this respect it welcomed technical assistance from the ILO to assist in the collection of the relevant data, without which differing and incongruous information on the matter would continue to proliferate.

The Employer members stated that the purpose of the 2006 ILO mission was to bring attention to the non-payment of wages problem, and that, although a greater awareness of the problem had been generated as a result, this alone was not sufficient. The Government must address the problem actively, and should be supported in its efforts to do so. They noted that, by the Government's own admission, problems in the Convention's implementation persisted. They called upon the Government to produce detailed statistical information to allow for as complete a picture as possible on the back-wages problem. They considered, in this respect, that the Government should not hesitate to make use of ILO technical assistance.

The Worker members stated that the discussion had given them the impression that the Islamic Republic of Iran lived in two worlds: the virtual world where wages were regularly paid and free and democratic trade unionism was exercised without hindrance, and the real world where a culture of non-payment of wages and a climate of intimidation and fear reigned for workers who dared to defend their rights, as demonstrated by the imprisonment of two union leaders, Mansour Ossanco and Mahmoud Salehi. The Worker members requested the Government to take the necessary steps to put an end to the culture of non-payment of wages, to provide reliable and detailed statistics to the Committee of Experts, to respond to the requests of the latter with respect to strengthening of the legislation and labour inspection and the adoption of genuinely dissuasive sanctions, and to put an end to the climate of intimidation and fear that reigned for workers who sought to defend their rights.

The Committee took note of the statement made by the Government representative, as well as the discussion that took place thereafter. The Committee noted that the Committee of Experts had been commenting on matters relating to accumulated wage debts especially in the textile sector.

The Committee noted that according to the oral explanations provided by the Government representative, irregularities in the payment of wages continued to occur for a number of reasons, both national and international, but several measures had been adopted to resolve the situation. The Government referred to recent measures to reinforce the labour inspectorate and provided data on inspection visits. The Government also described available procedures for the settlement of wage disputes and indicated that several financial assistance schemes had been set up to facilitate the re-employment or early retirement of workers of enterprises which were undergoing judicial liquidation or restructuring.

The Committee was informed of the existence of the report of the technical assistance mission undertaken by the Office in April 2006, following the Committee's previous discussion at the 93rd Session of the International Labour Conference in June 2005. It was informed, in particular, of the report's conclusion that although difficulties persisted in certain sectors as regards the regular payment of wages, the nature and scale of those problems appeared limited and the Government was tackling this situation with responsiveness.

The Committee encouraged the Government to pursue its efforts to improve national laws and practices aiming at protecting wage earners from abusive pay conditions and to report to the Committee of Experts on any new developments in this regard. It emphasized, in this connection, the need for reliable statistical information and accordingly requested the Government to collect and submit at the next meeting of the Committee of Experts concrete information on the sectors and types of establishments concerned, the approximate number of workers affected, the overall amount of accumulated wage arrears, the average length of the delay in the payment of wages, as well as detailed particulars on related inspection activities and the results obtained.

Finally, the Committee welcomed the Government's request for technical assistance in collecting data and establishing a database on labour inspection activities. The Committee therefore requested that the Office undertake a mission and that the conclusions of the mission be submitted to the Committee of Experts at its next meeting for inclusion in its report.

Individual Case (CAS) - Discussion: 2005, Publication: 93rd ILC session (2005)

A Government representative pointed out that since ratification of the Convention, this was the first time that the Conference Committee discussed its application by the Islamic Republic of Iran, which demonstrated the Government's continued commitment to fulfil its obligations concerning the protection of wages of the labour force, as well as its reporting obligations. The Government's economic policies and structures had not created a dynamic for job creation and unemployment was high. The Government, therefore, had intensified its efforts and had developed, with ILO assistance, an employment strategy. A better environment for enterprise creation and private investment needed to be established. Sectoral policies relating to minimum wages, productivity, training, social security, labour market regulation and tripartism and social dialogue formed a good foundation to build a functioning labour market. However, these polices could still be significantly improved and the Government was determined to rectify the situation. While the public sector played a dominant role, particularly in urban areas, a process of privatization was ongoing. Minimum wages were constantly revised in the light of inflation and enforced through labour inspection.

Over recent years, the textile industry had been facing serious problems due to a number of factors, such as globalization and competition. Some factories incurred heavy losses and were forced to cease operations. In turn, workers filed wage claims with the Ministry of Labour some of which could be settled by the Ministry through social dialogue. The Government had taken urgent measures, designed to redress the losses incurred on account of non-payment of wages. More than half of the workers affected had been compensated on the basis of early retirement legislation. The remaining workers had been paid three months pay for each year of service. In comparison, most countries only provided for up to one months' pay as severance payment. Other measures taken included: (1) some US$100,000 of financial credits for the implementation of structural adjustment in the textile industry; (2) US$230 million low interest loans in foreign currency for equipment renovation; (3) payment of unemployment benefits to job-seekers who had not been paid; and (4) measures to promote entrepreneurship. The Government would supply the necessary statistical information and documentation, as well as information on the results achieved, to the ILO within the next three months. Further, the Government would appreciate technical cooperation with respect to resolving the wage crisis.

The Employer members emphasized that during the last ten years the Conference Committee had examined in a regular manner the individual cases related to the grave situation of wage arrears and the inability of governments to deal with regular payments in line with Article 12, paragraph 1, of the Convention. As the Committee of Experts had noted in its General Survey of 2003, it had become a worrying and persistent phenomenon, particularly in countries making the transition to a market economy. The case of the Islamic Republic of Iran was different because it was not a country in transition and the problems affected a specific sector, the textile sector, where there was a consistent delay in wage payments.

The Committee of Experts had presented observations on this issue, with respect to the Islamic Republic of Iran, on two occasions, but this was the first time that the Committee had examined this case.

The Government provided information on the system of remedies for the legal protection of wages in the Islamic Republic of Iran and had provided information as to the actual situation of employment in certain textile factories. Despite this, the main problem was the lack of detailed information in order to understand the complete background and the level of compliance, in practice, with the Convention. In particular, it was important to consider statistical information that allowed an adequate evaluation of the real dimension of the problem, the number of workers affected, the amounts of wages due, and the inspections and sanctions imposed for lack of compliance.

The Employer members' organizations underlined, on repeated occasions, the importance of the Convention, which dealt with one of the essential questions of the labour relationship. The payment of wages profoundly affected the living conditions of workers, at times for prolonged periods. It could also have perverse effects on the functioning of the economy, incrementally leading to social instability, affecting the informal economy, and worsening the conditions of life, including situations of unfair competition. Despite this, there existed factors that could permit a better understanding of the causes of this situation. In certain situations, a specific sector could be confronted with the obligation to modernize the productive structure, with the consequent immediate implications for employment. On other occasions, the lack of liquidity for reasons of a circumstantial fall in demand impeded short-term capital, preventing the payment of wages. Nonetheless, nothing justified failing to pay wages. To alleviate the circumstances, legislation, through what was stipulated in Article 11 of the Convention, established a system of protection especially to deal with wage claims as opposed to other privileged creditors. In some cases the establishment of an inclusive system of collective security allowed crisis situations to be addressed.

With regard to the information provided by the Government, it was impossible to know the real dimension of the problem in the textile sector and other sectors that experienced or could have experienced delays in wage payments. The practical reality of the prevailing legal arrangements was also unknown. As a consequence, the Government needed to prepare more detailed information on these questions and indicate the socio-economic context, the difficulties faced by sectors affected by these delays or non-payment in order to better understand the circumstances in this situation, and it was also possible that some cases required technical assistance from the ILO.

The Worker members noted that the Government representative had not denied the serious shortcomings in the implementation of the Convention as indicated by the ICFTU and the WCL. Unfortunately, her answer had not provided a clear picture of the scale, nature and extent of the problems identified in the observation of the Committee of Experts. Although the problems were especially visible in the textile sector, in reality they touched upon a broad range of economic activity in both the public and private sectors, from the oil and shoe industry to telecommunications and hospitals. The Worker members hoped that the information that the Government had promised to submit to the Committee of Experts would cover the full scale of the problem. The Worker members considered that it was unfortunate that the Government representative had not referred to the allegations of police brutality against protesting workers, workplace arrests, abductions and disappearances. The Government representative had also not clearly indicated the measures taken or envisaged so as to ensure the improved implementation of the Convention. Reference had only been made to the available instruments, not to their actual use or contribution to the protection of the workers concerned.

In conclusion, the Worker members had four points to make. Firstly, they supported the request made by the Committee of Experts for the provision of detailed information by the Government. Secondly, they suggested that the Committee of Experts recommend to the Government to give social dialogue an important place in the efforts to solve the problems identified. Thirdly, they noted that this was a case in which the Government could benefit from the technical assistance of the ILO. Fourthly, they observed that the effective protection of wages was very difficult, if not impossible, without free and independent trade unions. Therefore, the Government could be well advised to ratify Conventions Nos. 87 and 98 as soon as possible in order to create the best possible conditions for real trade union activity, also in the framework of resolving the problem at hand.

The Worker member of the Islamic Republic of Iran stated that abusive pay practices and non-payment of wages were affecting a considerable number of countries, including the Islamic Republic of Iran. The Committee of Expert's view that non-payment of wages was part of a vicious circle affecting the national economy as a whole had been highlighted. The workers affected by non-application of the Convention comprised four categories.

Firstly, the workers who are working in factories and units which are currently operating, but their wages are not being paid because of the so-called cash flow problem that units are facing.

Secondly, the workers of factories whose units are undergoing restructuring. Under this category, either the whole or a large percentage of them are covered by unemployment benefit. They receive 85 per cent of their salary on the basis of their last 24 months' average pay. The remaining 15 per cent is paid by the employer along with the other benefits as per the collective agreement signed by the trade union of that unit. In such cases, the unpaid wages comprise 15% per cent wage and other related annual benefits.

Thirdly, as per the early retirement provisions of the Hard and Hazardous Jobs Act, workers with 20 consecutive, or 25 non-consecutive, years of service in these jobs can retire. Under section 24, of the Labour Law a retiring worker is eligible for retirement benefits. After retirement, the worker receives a pension from social security organization, but the employer, on its part, delays the payment of retirement benefit, which also varies from a few months to a year, or sometimes longer.

Fourthly, under the Renovation and Restructuring Industries Act, a worker with 25 years of service can retire with 30 days' pay. The social security contribution for the remaining five years is equally shared by the employer and the Government. In this case, the employer must agree and consent to the retirement of the worker. This right is abused by the employer, who dictates his terms to the worker, and agrees to his retirement on the condition that the worker does not press for payment of the retirement benefit, waiting to receive it after a few months or up to two years.

The majority of the non-payment of wages takes place in the first two groups of workers.

The speaker stated that the situation was much more serious than presented by the Committee of Experts. Further, a clarification was necessary regarding unpaid unemployment benefits and pensions, which concerned workers of factories undergoing restructuring programmes. In these cases, workers received 85 per cent of their average salaries in the form of unemployment benefits and the remaining 15 per cent from the employer. Non-payment of benefits could occur because each stage of the restructuring programme had to be approved by the Supreme Labour Council, and the Social Security Organization abstained from the payment of unemployment benefits unless it had received a letter extending the programme from the Ministry of Labour. Where restructuring programmes did not exist, workers suffered because they could not receive unemployment benefits and could not avail themselves of other social security benefits, including health benefits.

The speaker gave a detailed account of many situations in which the non-payment of wages had serious consequences for the workers concerned and their families. Workers were no longer able to pay back their housing loans, financial difficulties led to the break up of families, and even several cases of suicide were known. Where factory units had cash flow problems, provincial authorities as well as the Ministry of Labour provided assistance. While appreciating the efforts made by the Government, the speaker called for a change in the Government's attitude regarding the issue of non-payment of wages. He urged an increased allocation of the budget to the Workers Support Fund, which was currently far from sufficient. Recalling that the Convention called for means to redress the injury caused, including through fair compensation for losses incurred on account of delayed payment, the Government should adopt legislation requiring the payment of interest if wages arrears exceeded three months. Further, a tripartite committee should be established to follow-up the matter and the ILO should provide technical assistance. It was hoped that the Government would provide the information requested by the Committee of Experts and that progress could be noted soon.

The Government member of Canada welcomed the Islamic Republic of Iran's cooperation with the Organization, including its hosting of several visiting ILO delegations, as well as the signature of a Memorandum of Understanding with the ILO. It urged the Government to strengthen its commitment by permitting the ILO to reopen its Office in Teheran.

However, application of the Convention continued to be very problematic. Abusive pay practices and the non-payment of wages affected the national economy in its entirety which could have disastrous social and financial consequences. Unpaid workers and their families were deprived of their means of subsistence. They needed to have an effective recourse. In addition, workers put their safety at risk when they took to the street to claim their rights. In addition, he noted that the Labour Code's legal remedies for the recovery of unpaid wages and the settlement of wage claims were appreciated, but confirmation that wages and all arrears were indeed paid was necessary.

The speaker urged the Government to take immediate and concrete measures to eliminate the problem of unpaid wages, especially in the textile sector. The Government should provide the Committee of Experts current and detailed data on the employment situation in the textile industry and possibly other sectors where regular payment of wages was an issue, to enable an analysis of the situation.

In conclusion, ILO Conventions had minimal impact when human rights were not respected in practice. The Government of Canada remained extremely preoccupied by the situation of human rights in the Islamic Republic of Iran, including problems such as the independence of the judiciary, arbitrary detention, freedom of expression, treatment of women and treatment of persons belonging to religious and ethnic minorities. Only when these basic human rights were respected would Iranian workers enjoy the full rights they were entitled to.

Another Government representative wished to provide information in connection with certain questions raised. After the Islamic revolution, 250,000 small and medium-sized enterprises had been established in the Islamic Republic of Iran. However, in recent years, many industries faced tremendous challenges due to the negative consequences of globalization, without being in a position to profit from its benefits due to insufficient policies and inappropriate managerial practices. Low productivity, lack of appropriate machinery and high production costs prevented Iranian industries from competing in the global markets and deprived the workers of a decent livelihood. For instance, in the textile sector, low productivity and dated machinery had plunged the industry into bankruptcy with the total number of workers laid off amounting to 35,000. In order to support the industry, the Government had provided amounts equivalent to US$72 million for the industry's adjustment; 112 million in contributions for exports; 230 million in the form of low interest rate bank loans for renovation of machinery and equipment. In addition to this, 140,000 laid-off persons were receiving unemployment benefits in 2004. The minimum wage was being determined every year on the basis of tripartite consultations and in connection with the annual inflation rate. For the year 2005, the minimum wage amounted to approximately US$140. A series of other allowances were also paid to workers, as well as children and housing allowances.

In conclusion, the speaker reiterated that the Government had done its utmost to end the crisis in connection with the different entitlements of workers. Many deferred allowances had been paid while the textile industries had been renovated and had resumed their activities. Unemployed people were receiving their benefits. With regard to workers' demonstrations for the payment of their wages, efforts were being made to avoid the intervention of military forces. The Government had devised macroeconomic plans and a series of key strategies to promote employment, targeting an 8 per cent rate of growth so as to decrease unemployment to 7 per cent. Moreover, vast efforts were made in the area of vocational training and micro credit. A new initiative entailed the co-payment of workers' salaries by the Government and the employer at a rate of 50 per cent for each side. The Government representative indicated that a statistically detailed report would be submitted on all the above issues to the Committee of Experts in the forthcoming months.

The Employer members emphasized the need to fully apply the Convention in law and in practice. They requested the Government to provide detailed information, in particular statistical data, to allow a full picture to be drawn on the delayed payment or the non-payment of wages in specific sectors, the number of workers affected and the amount of wages due. They also asked for information relative to the effective implementation of the legislation in force and the socio-economic context, as well as the difficulties faced by the sectors in which the delays or non-payment occurred. They reiterated that the Office should provide appropriate technical assistance to the Government.

The Worker members recalled the four points they had raised during their initial intervention and emphasized that the Government should provide a detailed and specific reply to all points brought up during the discussion in its report to the Committee of Experts.

The Committee noted the oral explanations given by the Government representative and the ensuing discussion.

The Committee observed that the situation related to the application of the principle set out in Article 12, paragraph 1, of the Convention dealing with the payment of wages at regular intervals, particularly in the textile industry where a very high number of workers were reported to receive their wages with several months' delay. According to the comments of the ICFTU and the WCL, the situation prevailing throughout the country was dramatic and the growing unrest among Iranian workers was often met with violence on the part of the authorities.

The Committee took careful note of the information supplied by the Government representatives concerning the problems experienced by the national economy, such as the high unemployment rate, low productivity and inadequate private investment, and the efforts made by the Government for devising a new employment strategy, accelerating privatization and improving the business environment in the country. It noted, in particular, the information concerning the crisis in the textile industry in recent years which had led a large number of enterprises to file for bankruptcy or undergo restructuring.

The Committee also noted that, according to the indications provided by the Government, certain steps had been taken such as the implementation of a structural programme for the textile sector and the granting of loans for the modernization of textile factories and equipment. The Committee further noted the Government's indication that full statistical information would be submitted to the Office within three months.

The Committee stressed the importance that it attached to the Convention which related to a fundamental workers' right affecting their day-to-day life and that of their families. While mindful of the financial difficulties experienced by various sectors of the national economy, such as the textile sector, the Committee reminded the Government that the delayed payment of wages or the accumulation of wage arrears clearly contravened the letter and the spirit of the Convention and risked rendering the application of most of its other provisions meaningless.

The Committee reiterated that the problems of delayed payment or non-payment of wages called for sustained efforts, open and continuous dialogue with the social partners, and a wide range of measures, both at the legislative level and in practice, in order to ensure an effective supervision of national laws through labour inspection. The Government should provide information on the mechanisms in place to provide effective settlement of wage arrears. The Committee requested the Government to take all necessary measures to ensure that workers who claimed payment for unpaid wages were not the subject of abusive treatment and violence.

The Committee urged the Government to take all necessary steps to find viable solutions to the wage crisis faced by various sectors of economic activity, including but not limited to the textile industry, in accordance with the principles set forth in the Convention. It also asked the Government to prepare for the next session of the Committee of Experts a detailed report containing concrete information on the measures taken to ensure the application of the Convention in practice. Such information should include all relevant data including, for instance, the sectors, type of establishments and number of workers affected and the amount of accumulated wage arrears, the average length of the delay in the payment of wages, the number of inspections made, infringements observed and penalties imposed, workers' claims accepted and rejected and any time schedule for the settlement of outstanding wage arrears as well as a detailed description of the relevant legal remedies in the Labour Code and information on how these had been applied in the present circumstances.

The Committee expressed the hope that the Government would spare no effort to improve national laws and practices aiming at protecting wage earners from abusive pay conditions and that it would soon put an end to the persistent problems of non-payment of wages.

Finally, the Committee welcomed the Government's readiness to rectify the existing situation and to accept technical assistance from the Office.

Observation (CEACR) - adopted 2016, published 106th ILC session (2017)

Observation (CEACR) - adopted 2014, published 104th ILC session (2015)

Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

Article 12 of the Convention. Payment of wages at regular intervals. The Committee notes the Government’s detailed report in reply to the observations of the International Trade Union Confederation (ITUC), which were forwarded to it on 18 September 2009. The ITUC had reported significant problems of wage arrears, principally in the sugar cane, metal industries and textile sectors, with delays in payment ranging from two to 12 months. The Committee recalls that it has been commenting on this issue since 2005 and that the Office carried out two missions in 2006 and 2007, following the examination of the situation on two occasions by the Conference Committee on the Application of Standards, with a view to gathering concrete figures on wage arrears and the number of workers affected in order to gain a better understanding of the nature and scope of the problem.

In its report, the Government admits that the accumulation of wage arrears is in contravention of the letter and the spirit of the Convention and states that it is determined to accelerate its efforts to find appropriate solutions to the problem of the delayed payment of wages through social dialogue and better implementation of active labour policy, labour legislation and other corresponding laws and regulations. It reiterates that wage arrears are due, among other reasons, to unfair globalization causing inequalities both within and between nations, the lack of competitiveness, the scarcity of skilled labour and the lack of investment in human resources development at the enterprise level, the outdated equipment used in plants, the weakness of supporting industrial infrastructure, the privatization of state industries, low productivity and the rapid increase in wages, which are making certain industries, such as textiles, sugar and steel production, more fragile. In this respect, the Government indicates that it is continuing to invest massively in enterprises experiencing difficulties with a view to renewing the means of production and improving productivity, saving jobs and avoiding labour conflict. The Government adds that programmes are proposed for the payment of debts in instalments, together with managerial advice.

I.         Monitoring and evaluation of the situation of wage arrears

The Government indicates that 680 large and medium-sized enterprises have encountered problems, including problems of delayed payment of wages, including 459 public enterprises and 71 private enterprises. It adds that, of these enterprises, 311 have reported problems relating to wage arrears classified as mild to serious, while mismanagement and lack of flexibility were identified as the reasons for similar problems in 89 other enterprises. The Government finally indicates that these figures do not include small workshops in the informal economy, which must have been more adversely affected by the crisis. With regard to the court proceedings initiated in this field, the Committee notes that 80,972 complaints were lodged in 2007, resulting in 51,872 rulings in favour of 61,385 workers. Similarly, 85,626 complaints were lodged in 2008 resulting in 45,765 rulings in favour of 59,215 workers. With reference to the monitoring of the situation, the Committee notes the Government’s indication that the number of inspections is constantly increasing (a 45.6 per cent increase in 2008 in scheduled inspections and a 14.7 per cent increase in unscheduled inspections), as well as an increase in the staff of the inspection services (rising from 531 inspectors in 2007 to 821 in 2009). It notes that labour inspectors have a new form that has been prepared to include inspection of the payment of workers’ wages. In the event of problems due to the non-payment of wages, labour inspectors have to note the amount of the arrears and the period, in months, during which the wages have not been paid. The Committee also notes the establishment of working groups in each province to supervise the payment of wages and, where necessary, to report the non-payment of wages and any arrears that build up. Finally, the Committee notes the indication that some concrete steps still have to be taken for the analysis of the data collected by the labour inspection services, but that more detailed statistical data will be provided in future reports on the amount of wage arrears, the sectors and regions most affected, and estimates of the delays in the payment of wages.

II.        Situation of wage arrears in the sugar cane, textile and metal sectors

The Government indicates that in the sugar cane sector covered by Decree No. 40030.53539 of June 2008, the enterprise Haft Tapeh Sugar is now under the control of the Industrial Development and Renovation Organization (IDRO), the main task of which is to pay the wages due to the 17,000 workers in the enterprise. The Committee notes that 2,477,647,642 rials (or approximately US$250,000) have been paid in wage arrears and that, as of October 2009, all the workers had received what was owed to them. It also notes the Government’s indication that the delay in the payment of wages, which used to be three months, is now one month.

In the textile sector, which accounts for 280,000 jobs in 9,400 enterprises, the Government indicates that the delay in the payment of wages ranges from two to four months, particularly in the province of Mazandaran. It notes that the debts of 43 major enterprises in this sector have been rescheduled over several months, and even years, depending on the gravity of their financial problems, and that the Government is continuing to invest massively in this sector and in renovation programmes (US$4 billion in 2008). However, the Government does not provide any specific indication of the amount of wage arrears in the metal industry sector, or on any progress made in this respect.

While noting this information, the Committee observes that wage arrears are far from being resolved and that the international economic and financial crisis has only aggravated already existing structural factors. The Committee therefore requests the Government to continue providing detailed information, and particularly statistical data, on the amounts of wage arrears and the sectors affected. It also requests the Government to keep the Office informed of any new legislative, administrative or other measures intended to ensure the regular payment of wages, as required by Article 12 of the Convention.

In this respect, the Committee recalls its general observation of 2009 on wages which refers to the Global Jobs Pact, adopted by the International Labour Conference in June 2009 in response to the global economic crisis. The Pact places particular emphasis on the need to strengthen respect for international labour standards and explicitly identifies ILO instruments on wages as being relevant in order to prevent a downward spiral in labour conditions and build recovery (paragraph 14). The Committee wishes to emphasize that the Protection of Wages Convention, 1949 (No. 95), in particular, seeks to prevent wage arrears, which not only deprive workers of means of subsistence and therefore lower consumption, but also imply poor tax revenues and reduced public spending, thus leading to a vicious circle that affects the entire economic and social tissue of society. The Committee recalls that in view of the complexity of the issues, progress in this field can only be made through cooperation with the social partners. Implementing reforms and reaching compromise solutions in a crisis environment needs constant and genuine social dialogue. Drastic conditions also call for strict monitoring and enhanced enforcement, which in turn implies the strengthening of labour inspection services and a system of truly dissuasive and effective sanctions.

Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

Article 12 of the Convention. Payment of wages at regular intervals. The Committee notes the comments made by the International Trade Union Confederation (ITUC) concerning the implementation of the Convention and, in particular, alleged problems of accumulated wage debts. According to the ITUC, wage arrears constitute a serious problem in the Islamic Republic of Iran and are one of the major roots of labour unrest. The ITUC provides a list of incidents of wage arrears affecting thousands of workers mainly in the sugar cane, metal and textile industries with delays in the payment of wages ranging from two to 12 months. The Committee recalls, in this connection, its previous observation in which it expressed concern about the extent of the problem of unpaid wages and also the fact that the situation was inadequately monitored. As the Government’s reply was received on 2 December 2009, the Committee intends to examine the matters raised in the observations of the ITUC at its next session.

Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

The Committee notes that the Government’s report has not been received. It must therefore repeat its previous observation which read as follows:

Further to its previous comments, the Committee notes the Office report following the mission to the Islamic Republic of Iran undertaken from 26 October to 1 November 2007. The six-day mission was scheduled as a follow-up to the discussion concerning the application of the Convention that took place in the Conference Committee on the Application of Standards in June 2007. As requested by the Conference Committee, the conclusions of the ILO mission relating to the application of Convention No. 95 are reproduced below.

The Committee notes that the main purpose of the ILO mission was to obtain a better sense of the nature and extent of the problem of wage arrears, principally by collecting concrete figures on wage arrears and the number of affected workers as well as up to date information on measures taken by the Government in order to tackle the problem of delayed payment of wages. It also notes that the mission included a senior statistician from the ILO Bureau of Statistics with a view to evaluating any available statistical data relating to the non-payment of wages and advising the Government on how to improve the collection of such data.

The Committee takes note of the main findings and conclusions of the ILO mission concerning the problem of wage arrears which read as follows:

IV. Main findings

117. The mission had a full range of intense and instructive meetings with government officials and representatives of other public institutions, employers’ and workers’ organizations, and civil society associations. Three major issues were addressed in a series of joint or separate group meetings: (i) the application of Convention No. 95 with special reference to wage arrears; (ii) the application of Convention No. 111 with special focus on gender equality and the protection of ethnic and religious minorities; (iii) freedom of association issues including the situation of employers’ and workers’ organizations in the country. The Government once again fully cooperated with the mission enabling it to complete its work. The dialogue was frank and information was forthcoming.

1.     The problem of wage arrears

118. The principal purpose of the mission was the collection of statistical information on the problems of non-payment or delayed payment of wages in industries experiencing financial difficulties. In this regard, the mission obtained a significant amount of information and data allowing a better understanding of the socio-economic context in which the phenomenon of wage arrears persists. The Islamic Republic of Iran has embarked on an extensive programme of privatization and therefore its national economy is clearly in transition. Most of the problems it is currently facing are structural and are not expected to disappear in the immediate future. International competition and the country’s current political context heavily impact on its export trade and further deepen the crisis in the textile industry. The Government has continued to inject billions of dollars in the form of financial aid to enterprises in difficulty due to the social implications for employment and unemployment as well as the increasing demographic growth rate.

119. At present, statistical standard forms or labour inspection procedures are not designed to capture specific information on wage arrears (e.g. sectors or regions affected, delay in weeks or months, etc.) and the only available data that can provide a rough idea of the extent of the problem come from the number of individual or collective complaints filed with the dispute settlement boards. Concrete proposals were made in this respect to the officials of the Statistical Centre and of the Labour Market Information and Statistics Centre of the Ministry of Labour and Social Affairs and reassurances were given that wage arrears would be better monitored in the future.

        Statistics concerning the situation of wage arrears
in the Islamic Republic of Iran

Scale of wage arrears

Estimated 85,000 workers (out of total workforce of 7 million) experiencing delay in the payment of their wages in the last 12 months

Labour inspection activities (results between March–September 2007)
Number of total inspection visits						179 584
Number of inspections on wage issues (10 per cent of all inspection activities)						18 450

Available remedies
Legal decisions						No. of cases			No. of workers concerned
Inquiry boards						28 240			32 777
Dispute settlement boards (following the appeal of 10,206 inquiry board decisions)						7 870			9 700

Financial assistance provided to enterprises in difficulty
Amount of subsidies	7 037 831 million rials (approx. US$755 million)
Number of jobs saved	422 360

120. Based on the number of cases filed with and settled by the inquiry boards and dispute settlement boards, it is estimated that approximately 85,000 workers were affected by wage arrears in the last 12 months. The largest number of complaints (4,936) were filed in Esfahan province and the lowest number (83) in North Khosaran province. The 2007 statistics represented a 23 per cent decrease as compared to the number of complaints filed in 2006 and a further 11 per cent decrease as compared to those filed in 2005. With respect to enforcement, 10 per cent of all labour inspection activities concerned wage issues, mostly cases referred by the dispute settlement boards for follow-up action. Out of a total 10,200 plants in the textile sector, around 100 plants reported occasional difficulties with the payment of wages. In the last 12 months, the situation improved in certain provinces, such as the Qazvin province, but problems persisted elsewhere. The mission was provided with general information that other branches of economic activity, such as the sugar cane industry, are experiencing pay problems, but it was not possible in the time available to obtain any concrete information on the situation in sugar cane factories.

…

V. Conclusions

Protection of wages

137. Based on the oral and written information obtained, the mission concludes that, although the Government is continuing to take action to support enterprises experiencing difficulties with wage arrears, the problem continues to affect large numbers of textile workers. Other industrial sectors, such as the sugar industry, are most probably experiencing similar problems. The Government admits the existence of the problem but maintains that it is a limited and unfortunate side-effect of expanding privatization, low productivity and competitiveness of the domestic textile sector and negative external factors. The mission is mindful of the continued efforts of the Government to keep enterprises afloat and save jobs by massively subsidizing enterprises that are experiencing difficulties. The mission believes, however, that the Government must address the structural deficiencies of the national economy with a long-term strategy for strengthening the productivity and sustainability of private enterprises. It must bolster and speed up the current privatization efforts on the way, providing economic space for enterprises and continue to strengthen democratic institutions, in accordance with article 44 of the Constitution of the Islamic Republic of Iran and article 145 of the Law of the Fourth Economic, Social and Cultural Development Plan, 2005–09, which was enacted on 1 September 2004. The mission reaffirms the importance of closely monitoring the evolving of the situation with respect to wage arrears, and, in this connection, emphasizes the need for reliable statistics. The mission therefore encourages the Government to continue to avail itself of the technical assistance of the Office in relation to data collection.

Having duly examined the Office report, the Committee notes that the discussions with government officials, public institutions and employers’ and workers’ organizations were once more open, direct and constructive and helped to further clarify the situation with regard to wage arrears experienced in certain sectors of the economy of the Islamic Republic of Iran. While noting that action is being taken by the Government to address problems faced by enterprises experiencing wage arrears, the Committee remains concerned about the fact that the problem of unpaid wages continues to affect tens of thousands of textile workers. It also notes that the problem would appear to occur in other branches of economic activity such as the sugar cane industry. Noting that the situation is at present inadequately monitored as standard documents used by the labour inspection services are not designed to capture information on wage arrears, the Committee requests the Government to take the necessary steps to ensure that the ongoing situation of unpaid wages is kept under close supervision and constant assessment through the systematic collection of relevant information. The Committee also requests the Government to continue to provide detailed information on the evolving of the situation as well as on any new measures taken or planned with a view to settling all outstanding payments and preventing the recurrence or expansion of the problem that clearly contravenes the letter and the spirit of Convention No. 95.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future.

Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

Further to its previous comments, the Committee notes the Office report following the mission to the Islamic Republic of Iran undertaken from 26 October to 1 November 2007. The six-day mission was scheduled as a follow-up to the discussion concerning the application of the Convention that took place in the Conference Committee on the Application of Standards in June 2007. As requested by the Conference Committee, the conclusions of the ILO mission relating to the application of Convention No. 95 are reproduced below.

The Committee notes that the main purpose of the ILO mission was to obtain a better sense of the nature and extent of the problem of wage arrears, principally by collecting concrete figures on wage arrears and the number of affected workers as well as up to date information on measures taken by the Government in order to tackle the problem of delayed payment of wages. It also notes that the mission included a senior statistician from the ILO Bureau of Statistics with a view to evaluating any available statistical data relating to the non-payment of wages and advising the Government on how to improve the collection of such data.

The Committee takes note of the main findings and conclusions of the ILO mission concerning the problem of wage arrears which read as follows:

IV.           Main findings

117. The mission had a full range of intense and instructive meetings with government officials and representatives of other public institutions, employers’ and workers’ organizations, and civil society associations. Three major issues were addressed in a series of joint or separate group meetings: (i) the application of Convention No. 95 with special reference to wage arrears; (ii) the application of Convention No. 111 with special focus on gender equality and the protection of ethnic and religious minorities; (iii) freedom of association issues including the situation of employers’ and workers’ organizations in the country. The Government once again fully cooperated with the mission enabling it to complete its work. The dialogue was frank and information was forthcoming.

1. The problem of wage arrears

118. The principal purpose of the mission was the collection of statistical information on the problems of non-payment or delayed payment of wages in industries experiencing financial difficulties. In this regard, the mission obtained a significant amount of information and data allowing a better understanding of the socio-economic context in which the phenomenon of wage arrears persists. The Islamic Republic of Iran has embarked on an extensive programme of privatization and therefore its national economy is clearly in transition. Most of the problems it is currently facing are structural and are not expected to disappear in the immediate future. International competition and the country’s current political context heavily impact on its export trade and further deepen the crisis in the textile industry. The Government has continued to inject billions of dollars in the form of financial aid to enterprises in difficulty due to the social implications for employment and unemployment as well as the increasing demographic growth rate.

119. At present, statistical standard forms or labour inspection procedures are not designed to capture specific information on wage arrears (e.g. sectors or regions affected, delay in weeks or months, etc.) and the only available data that can provide a rough idea of the extent of the problem come from the number of individual or collective complaints filed with the dispute settlement boards. Concrete proposals were made in this respect to the officials of the Statistical Centre and of the Labour Market Information and Statistics Centre of the Ministry of Labour and Social Affairs and reassurances were given that wage arrears would be better monitored in the future.

in the Islamic Republic of Iran

Scale of wage arrears
Estimated 85,000 workers (out of total workforce of 7 million) experiencing delay in the payment of their wages in the last 12 months
Labour inspection activities (results between March–September 2007)
Number of total inspection visits				179 584
Number of inspections on wage issues (10 per cent of all inspection activities)				18 450
Available remedies
Legal decisions		No. of cases			No. of workers concerned
Inquiry boards		28 240			32 777
Dispute settlement boards (following the appeal of 10,206 inquiry board decisions)		7 870			9 700
Financial assistance provided to enterprises in difficulty
Amount of subsidies	7 037 831 million rials (approx. US$755 million)
Number of jobs saved	422 360

120. Based on the number of cases filed with and settled by the inquiry boards and dispute settlement boards, it is estimated that approximately 85,000 workers were affected by wage arrears in the last 12 months. The largest number of complaints (4,936) were filed in Esfahan province and the lowest number (83) in North Khosaran province. The 2007 statistics represented a 23 per cent decrease as compared to the number of complaints filed in 2006 and a further 11 per cent decrease as compared to those filed in 2005. With respect to enforcement, 10 per cent of all labour inspection activities concerned wage issues, mostly cases referred by the dispute settlement boards for follow-up action. Out of a total 10,200 plants in the textile sector, around 100 plants reported occasional difficulties with the payment of wages. In the last 12 months, the situation improved in certain provinces, such as the Qazvin province, but problems persisted elsewhere. The mission was provided with general information that other branches of economic activity, such as the sugar cane industry, are experiencing pay problems, but it was not possible in the time available to obtain any concrete information on the situation in sugar cane factories.

…

V. Conclusions

Protection of wages

137. Based on the oral and written information obtained, the mission concludes that, although the Government is continuing to take action to support enterprises experiencing difficulties with wage arrears, the problem continues to affect large numbers of textile workers. Other industrial sectors, such as the sugar industry, are most probably experiencing similar problems. The Government admits the existence of the problem but maintains that it is a limited and unfortunate side-effect of expanding privatization, low productivity and competitiveness of the domestic textile sector and negative external factors. The mission is mindful of the continued efforts of the Government to keep enterprises afloat and save jobs by massively subsidizing enterprises that are experiencing difficulties. The mission believes, however, that the Government must address the structural deficiencies of the national economy with a long-term strategy for strengthening the productivity and sustainability of private enterprises. It must bolster and speed up the current privatization efforts on the way, providing economic space for enterprises and continue to strengthen democratic institutions, in accordance with article 44 of the Constitution of the Islamic Republic of Iran and article 145 of the Law of the Fourth Economic, Social and Cultural Development Plan, 2005–09, which was enacted on 1 September 2004. The mission reaffirms the importance of closely monitoring the evolving of the situation with respect to wage arrears, and, in this connection, emphasizes the need for reliable statistics. The mission therefore encourages the Government to continue to avail itself of the technical assistance of the Office in relation to data collection.

Having duly examined the Office report, the Committee notes that the discussions with government officials, public institutions and employers’ and workers’ organizations were once more open, direct and constructive and helped to further clarify the situation with regard to wage arrears experienced in certain sectors of the economy of the Islamic Republic of Iran. While noting that action is being taken by the Government to address problems faced by enterprises experiencing wage arrears, the Committee remains concerned about the fact that the problem of unpaid wages continues to affect tens of thousands of textile workers. It also notes that the problem would appear to occur in other branches of economic activity such as the sugar cane industry. Noting that the situation is at present inadequately monitored as standard documents used by the labour inspection services are not designed to capture information on wage arrears, the Committee requests the Government to take the necessary steps to ensure that the ongoing situation of unpaid wages is kept under close supervision and constant assessment through the systematic collection of relevant information. The Committee also requests the Government to continue to provide detailed information on the evolving of the situation as well as on any new measures taken or planned with a view to settling all outstanding payments and preventing the recurrence or expansion of the problem that clearly contravenes the letter and the spirit of Convention No. 95.

[The Government is asked to reply in detail to the present comments in 2008.]

Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee recalls its previous observations concerning the wage crisis that has been affecting a large number of enterprises, especially in the textile sector, as a result of globalization, low productivity, and insufficient private investment. The Committee has been in receipt of the report of the technical assistance mission to the Islamic Republic of Iran undertaken by the Office in April 2006. The three-day mission was scheduled as a follow-up to the discussion that took place in the Conference Committee of the Application of Standards in June 2005. The purpose of the technical assistance mission was to hold broad consultations with the tripartite constituents and reach a better understanding of the labour realities in the country including, but not limited to, the problem of wage arrears. The mission also addressed the question of the promotion of competitiveness and productivity in the textile industry with a view to considering the possibility of technical cooperation in this field.

Having duly examined the Office report, the Committee is satisfied that the numerous meetings with Government officials, public institutions and employers’ and workers’ organizations – held in a true spirit of openness and goodwill – have permitted a clear and objective appreciation of the nature, the scale and the causes of the wage difficulties experienced in certain sectors of the national economy. The Committee notes that, according to the Office report, even though irregularities in the payment of wages continue to occur, the problem is tackled rather satisfactorily by the Government and the judiciary, while there is no indication that payment in kind (barter) is offered in lieu of cash wages (paragraph 39). It also notes with interest the view expressed in the report that there is no evidence that the country is faced with a widespread wage crisis, or a non-payment of wages “culture”, either in terms of the number of workers affected or in terms of the average length of the delay in the payment of wages (paragraph 49). Apart from those positive findings, however, the report refers to the lack of reliable statistics as an indication of the poor monitoring of the wage situation on the part of the competent authorities. The Committee trusts that the Government will take due note of the conclusions of the technical assistance mission report and will avail itself of the Office’s advisory services in pursuing the current labour law reforms. The Committee hopes that the Government will make every effort to collect and communicate concrete figures regarding the total amount of any outstanding wage arrears, the approximate number of workers and enterprises concerned and the average delay in the payment of wages. The Committee requests the Government to provide full particulars on any measures aiming at improving the enforcement of the labour legislation as regards the regular payment of wages, for instance by strengthening the labour inspection system or providing for truly dissuasive sanctions.

Observation (CEACR) - adopted 2005, published 95th ILC session (2006)

The Committee notes the discussion that took place in the Committee on the Application of Standards at the 93rd Session of the International Labour Conference (June 2005). It notes, in particular, the Government’s explanations regarding the problems of unemployment, low productivity and insufficient private investment that have led to a crisis in the textile industry and to the bankruptcy or restructuring of a large number of enterprises. It also notes the Government’s wish to remedy the situation and to receive technical assistance for this purpose from the ILO. The Committee understands that a technical assistance mission has already been planned in consultation with the Government and is to address not only the non-payment of wages but also the issues of productivity and competitiveness in enterprises. Lastly, the Committee notes that the Conference Committee on the Application of Standards asked the Government to provide a detailed report for the present session of the Committee of Experts containing specific information on the sectors, types of establishment and number of workers concerned, the total amount of wage arrears, the average delay in payment of wages, the number of inspection visits conducted, the infringements reported and the penalties imposed, complaints by workers that have succeeded and failed, the timetable for the settlement of unrecovered wage debts and a detailed description of the means of redress available under the Labour Code.

In its report received on 28 September 2005, the Government indicates that over the last decade a large number of enterprises have had to cope with an acute financial crisis as a result of globalization and, more particularly, low productivity in local industries. According to the information supplied by the Government, the textile industry has been the hardest hit, with 120 factories being affected by restructuring and some 35,000 workers having lost their jobs. Other sectors, such as building materials, food industries, metal industries, wood and paper industries, and electrical appliance industries, are also affected by the need for renovation, restructuring and downsizing. The Government gives a detailed account of the measures taken to boost certain sectors of the national economy, inter alia, by means of low-interest rate credit loans. As to wage arrears, the Government states that dispute settlement boards have so far resolved 90 per cent of disputes countrywide but that a number of claims are still pending, largely pertaining to fringe benefits.

While noting the Government’s explanations, the Committee would appreciate more detailed information on the total amount of wage arrears, the number of workers concerned and the average delay in payment. It would also appreciate information on any measures taken or envisaged by the Government to strengthen the inspection services, on the results obtained and on legislative amendments to improve enforcement of the provisions of the Convention concerning regular payment of wages. It asks the Government in particular to provide details on the practice of purchasing the services of some 15,000 workers in the textile industry on the basis of three months’ salary per year.

The Committee takes note of the comments of 31 August 2005 sent by the International Confederation of Free Trade Unions (ICFTU) on the application of the Convention. According to the ICFTU, the non-payment of wages continues to be a recurrent problem in both the private and the public sectors. The problem is to be found in many sectors, such as textiles, communications, agriculture, mining and the medical sector. Factories producing steel, plastics, refrigerators, plaster, bricks, footwear and records have also been affected. In the ICFTU’s view, the failure of many state-owned companies to pay wages shows that the Government should comply with its own laws and its international obligations. The ICFTU further indicates that when companies shut down, in many cases workers’ back pay is not settled. Furthermore, workers have no recourse to effective machinery for compensation for late payment of wages and financial losses caused by such delays.

The Committee takes this opportunity to recall that as it is stated in paragraph 355 of its General Survey of 2003 on the protection of wages, the quintessence of wage protection is the assurance of periodic payment allowing the worker to organize his everyday life with a reasonable degree of certainty and security. Inversely, the delayed payment of wages or the accumulation of wage debts clearly contravene the letter and the spirit of the Convention and render the application of most of its other provisions simply meaningless.

The Committee hopes that the Government will not fail to step up its efforts and use all available means to contain and gradually eliminate the non-payment or delayed payment of wages before the problem becomes more serious. It also invites the Government to provide a detailed reply to the ICFTU’s latest comments.

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.

Observation (CEACR) - adopted 2003, published 92nd ILC session (2004)

With reference to its previous comments, the Committee recalls the observations made by the International Confederation of Free Trade Unions and the World Confederation of Labour concerning the application of the Convention which were transmitted to the Government on 12 November and 12 December 2002 respectively. The Committee urges the Government to provide a full reply so as to enable the Committee to examine the points raised in these observations in detail at its next session.

[The Government is asked to report in detail in 2004.]

Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes the observations made by the International Confederation of Free Trade Unions concerning the application of the Convention which were received by the Office on 20 September 2002 and transmitted to the Government on 12 November 2002, as well as the comments made by the World Confederation of Labour on the same subject which were communicated to the Office on 31 October 2002. The Committee hopes the Government will provide, with its next report, detailed information regarding the comments made by the abovementioned organizations as well as on the Committee’s previous comments.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee takes note of the Government’s report. The Committee would be grateful to the Government for supplying further information on the following points.

Article 2. The Committee notes the regulations of 4 July 1993 regarding the amount of work, holidays and wage rates of workers who receive part or all of their wage payments from customers or commissions. It also notes from the Government’s report that the regulations for the personnel and employees of transport services (land, air and sea) have not as yet been approved. The Committee requests the Government to supply information in future reports on any progress made regarding the adoption of regulations applicable to certain categories of workers, including agricultural workers and fishermen, and to provide copies of such regulations as soon as they are issued.

Articles 3 and 4. The Committee notes that, under paragraph 3 of the Directive No. 65-37 of 18 March 2000, all workers are entitled to receive vouchers for essential commodities of a value ranging from 10,000 rials a month for married workers to 6,000 rials a month for single workers to be used at the workers’ cooperative stores. The Committee also notes the Government’s statement that these vouchers are separate from cash wages but are considered as part of the worker’s remuneration within the meaning of section 34 of the Labour Code of 20 November 1990. The Committee would be grateful if the Government could provide additional information on the practical use of the vouchers, the type of exchangeable commodities, and the exact conditions of operation of the workers’ cooperative stores.

In addition, the Committee notes that the Labour Code in its sections 35, 40 and 42 provides for the partial payment of wages in the form of allowances in kind which may only be offered in addition to the minimum wage and the cash value of which has to be equitable and reasonable. The Committee requests the Government to indicate the measures taken or envisaged to ensure that such allowances in kind are appropriate for the personal use and benefit of the worker and his/her family in accordance with Article 4, paragraph 2(a), of the Convention.

Article 5. The Committee notes the Government’s reference to sections 24 and 27 of the Labour Code on the termination of employment contract but recalls that there seems to be no specific provision in the labour legislation prescribing that wages have to be paid directly to the worker concerned, as required under the Convention. The Committee hopes that the Government will make every effort to take the necessary action in the very near future.

Article 6. The Committee once again points out that this Article of the Convention calls for an appropriate legislative provision setting out in unequivocal terms that it is not enough for workers to receive their wages regularly and in full, but that they should also be free to spend their wages as they choose. The Committee hopes that the Government will take the necessary steps to ensure full compliance with the requirements of the Convention in this regard.

Article 7. The Committee notes the guidelines of 5 October 1991 concerning the workers’ cooperative societies established in accordance with section 153 of the Labour Code. The Committee would appreciate receiving some clarification on article 3 of the guidelines, read in conjunction with section 45(f) of the Labour Code, concerning the conditions under which and the limits within which deductions may be made from wages for the repayment of sums due to the cooperative society.

Moreover, in connection with the point raised under Article 3 above, the Committee requests the Government to specify which national laws or regulations provide that the workers’ cooperative stores are not operated for the purpose of securing profit but for the benefit of the workers concerned and also that the workers are free from any coercion to make use of such cooperative stores or services.

Articles 8 and 10. The Committee recalls its previous comment in which it requested the Government to provide the text of the relevant provisions of the Civil Code regarding attachment or assignment of wages. In the absence of any enclosure, however, the Committee again asks the Government to supply a copy of the provisions concerned, including the provisions on attachment of wages for the purpose of securing maintenance payments to the worker’s dependants.

Article 9. The Committee once again reminds the Government that this Article of the Convention requires a specific legislative provision explicitly prohibiting any deduction from wages with a view to ensuring a direct or indirect payment for the purpose of obtaining or retaining employment, made by a worker to an employer or his representative or to any intermediary. The Committee hopes that the Government will soon take the measures it deems necessary in order to bring its legislation into conformity with the Convention.

Article 11. The Committee requests the Government to clarify whether note 1 of section 13 of the Labour Code applies only to contracts for piece-work or to all employment relations without distinction. The Committee also asks the Government to specify the laws or regulations determining the relative priority of wages constituting a privileged debt and the exact scope of that privilege.

Articles 13 and 14(b). The Committee notes the Government’s statement that section 37 of the Labour Code is strictly and successfully applied so that there is no need to introduce new legislation in this matter. The Committee is bound to observe, in this regard, that the fact that the Government may possibly not have encountered so far any practical difficulties with respect to a certain aspect of wage protection does not absolve it from its obligation, emanating from the formal act of ratification, to fully incorporate the provisions of the Convention into national legislation by enacting laws and/or adopting regulations as appropriate. The Committee asks accordingly the Government to take the necessary measures to bring national legislation into conformity with practice by providing for the payment of wages at or near the workplace and the requirement to keep workers informed of the details concerning the calculation of their earnings in respect of each pay period. In this connection, the Committee wishes to draw the Government’s attention to Paragraphs 6 and 7 of the Protection of Wages Recommendation, 1949 (No. 85), which give guidance with regard to wage statements and the notification to workers of wage conditions.

Article 15(c) and (d). Further to its previous comments on this point, the Committee reiterates that, under the terms of the Convention, national laws or regulations must stipulate effective sanctions or other appropriate remedies for any violation of the provisions giving effect to the Convention and not only for specific offences concerning wage payment. The Committee trusts that the Government will not fail to take the necessary action in the very near future.

In addition, the Committee notes that the Government’s reply contains no information concerning the maintenance of adequate records in an approved form and manner as set out in the Convention. The Committee expresses the hope that the Government will be in a position in its next report to indicate some progress in this regard.

Direct Request (CEACR) - adopted 1995, published 83rd ILC session (1996)

Article 2 of the Convention. Further to the previous comments, the Committee notes from the Government's report that there have been several regulations, either already approved or in course of approval, making special provisions for the personnel and employees of transport services (air, sea and land), fishermen, workers in the agricultural sector, as well as workers whose wages and earnings are provided by customers and clients. The Committee requests the Government to supply copies of such regulations or of a part of them concerning the protection of wages.

Article 3. The Committee notes the Government's statement that the entitlement of all workers to the "essential commodity coupons" is considered as a part of remuneration covered by section 34 of the Labour Code of 20 November 1990. It asks the Government to provide more detailed information on the use in practice of these coupons: for instance, are they usable in many places like a substitute money or are they rather exchangeable with specified commodities only? Please also supply a copy of the Regulations on these coupons.

Article 5. The Committee notes the Government's reference to sections 34, 37 and the Note to section 37 of the Code. Recalling that these provisions concern the definition of the term "remuneration" and the time and place of wage payment, respectively, but do not explicitly provide that the payment of wage should be made directly to the worker concerned, it again asks the Government to indicate measures taken to give effect to this Article.

Article 6. The Committee requests the Government to specify which national laws or regulations provide that wages belong to the worker and that employers are prohibited from limiting the freedom of the worker to dispose of his or her wages.

Article 7. Noting that the enclosure to the Government's report has not been received, the Committee would be grateful if the Government would supply a copy of the Regulations concerning workers' cooperative societies made under the Note to section 153 of the Code.

Articles 8 and 10. The Committee notes the Government's indication that only one-quarter of the worker's wage, if married, otherwise one-third, may be attached or assigned, under the provisions of the Civil Code. It requests the Government to provide the text of the provisions concerned.

Article 9. The Committee notes the Government's repeated statement that any direct or indirect withholding of the worker's wages, for the purpose of obtaining or retaining employment, is prohibited. It again asks the Government to supply a copy of the legislative provisions that set forth this prohibition.

Article 11. The Committee notes the Government's reference to Note 1 to section 13 of the Code, which provides that any amount due to a worker shall be considered as privileged debt in the context of contracts for piece-work where the worker is the contractor's personnel. It requests the Government to indicate measures taken or envisaged to ensure a similar protection of workers' wage claims in other cases of employment relation.

Articles 13 and 14(b). The Committee notes the Government's indication that the requirement under section 37 of the Code that wages should be paid during working hours implicitly means the payment should be made at or near the workplace, and also that this provision and its implied meaning are respected in practice. The Committee nevertheless hopes that the Government will take measures at a suitable occasion to ensure such practice (payment of wages at or near the workplace and information to workers on particulars of the wages liable to change from time to time) and will indicate any development in this regard.

Article 15(c). As to section 174 of the Code, to which the Government refers in the report, the Committee recalls that penalties prescribed in this provision cover only the offences under a part of the provisions of the Code concerning wage payment. It again requests the Government to indicate measures taken or envisaged to prescribe adequate penalties or other appropriate remedies for any violation of the provisions of the Code giving effect to the Convention. The Committee also notes the Government's reference to section 157 of the Code concerning the settlement of disputes between a worker and an employer, and requests the Government to supply information on actual cases in which procedures under this section have been used regarding the payment of wages.

Article 15(d). In the absence of the Government's reply, the Committee again requests the Government to indicate measures taken or envisaged to provide for the maintenance of adequate records.

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes with interest the adoption of the Labour Code dated 20 November 1990, which includes some provisions responding to the comments previously made by the Committee, namely regarding Articles 4, paragraph 2(b), and 12, paragraph 2, of the Convention. The Committee would be grateful to the Government for supplying further information on the following points.

Article 2. The Committee requests the Government: (1) to provide a copy of regulations made under section 190 of the Code applicable to certain categories of workers, including domestic servants; (2) to indicate whether any workers in the agricultural sector have been exempted from parts of the Code in virtue of section 189; and (3) to supply information on the temporary exclusion from the Code of small-scale enterprises under section 191.

Article 3. The Committee notes with interest that section 37 of the Code provides for the payment of wages in the currency of the country or, by mutual consent, by bank cheque. The Government, however, indicates in its report concerning Article 6 of the Convention that all workers are monthly entitled to 7,000 rial worth of essential commodity coupons, which are usable at the workers' consumers cooperatives. The Committee requests the Government to indicate whether the payment in such coupons is considered to be a part of the worker's wages.

Article 5. The Committee notes that the Code contains no provision on the direct payment of wages to the worker concerned, and requests the Government to indicate measures taken or envisaged to give effect to this Article.

Article 6. The Committee notes that the Code contains no provision prohibiting the employer from limiting the freedom of the worker to dispose of his wages, and requests the Government to indicate measures taken or envisaged to give effect to this Article.

Article 7. The Committee would be grateful to the Government for providing a copy of the by-law concerning workers' cooperative societies made under the Note to section 153 of the Code.

Articles 8 and 9. The Committee notes that section 45 of the Code enumerates the cases in which a worker's wage may be withheld. Noting that the extent to which the wage may be withheld is not prescribed in the Code, it requests the Government to indicate measures taken or envisaged to give full effect to Article 8(1). It also notes the Government's statement that to make direct or indirect payment to anybody for the purpose of obtaining or retaining employment is illegal and subject to penal prosecution, and requests for a copy of the legislative provision concerned.

Article 10. The Committee notes that section 44 of the Code regulates attachment of wages with regard to money owed by the worker to the employer. It requests the Government to indicate measures taken or envisaged to regulate attachment of wages with regard to money owed by the worker to a third person, and assignment of wages.

Article 11. The Committee notes that the Code contains no provision on the protection of workers' claims as regards wages in the event of the bankruptcy or judicial liquidation of an undertaking, and requests the Government to indicate measures taken or envisaged to give effect to this Article.

Article 13. The Committee notes that the Code contains no provision on the place of wage payment and requests the Government to indicate measures taken or envisaged to give effect to the Convention in this respect.

Article 14(b). The Committee requests the Government to indicate measures taken to ensure that workers are informed of the particulars of their wages at the time of each payment of wages.

Article 15(c). The Committee notes that Chapter XI of the Code prescribes penalties for offences. It notes, however, that as regards payment of wages, penalties are prescribed only for offences under section 45 (deductions from wages) and the Note to section 41 (minimum wage). Recalling that this provision of the Convention calls for adequate penalties or other appropriate remedies for any violation of the laws or regulations giving effect to the Convention, the Committee requests the Government to indicate measures taken or envisaged to this end.

Article 15(d). The Committee requests the Government to indicate measures taken or envisaged to provide for the maintenance of adequate records.

Direct Request (CEACR) - adopted 1992, published 79th ILC session (1992)

The Committee notes with regret that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

The Committee notes from the Government's report that a new labour law is under final examination. It hopes that the following points will be taken into consideration, and that the Government will be able to indicate in its next report the progress achieved.

1. Article 2 of the Convention. The Committee notes that revision of regulations concerning domestic workers is under way in Parliament. It hopes that they will be adopted in the very near future and asks the Government to indicate any progress with a view to the application of the Convention to categories of workers presently excluded from its application in whole or in part.

The Committee also notes that the updated Agricultural Labour Law adopted in 1980-81 has a wider scope of application than article 1 of the Agricultural Labour Law of 1974. It asks the Government to confirm whether the categories of persons excluded from the application of the new law are the same as those under article 6 of the Law of 1974. The Committee requests the Government to provide a copy of the said new law.

2. Article 3. Please indicate what measures have been taken or envisaged to give effect to this Article.

3. Article 4. The Committee pointed out that under section 1, note 2 and section 4 of the Agricultural Labour Law, agricultural workers may be paid exclusively in the form of allowances in kind, and the manner of payment shall be fixed by mutual agreement. The Committee hopes that the Government will take the necessary measures to ensure that payments in kind are regulated by legislation, arbitration awards or collective (and not mutual) agreement and that they account for only part of the remuneration in accordance with the Convention.

4. Article 6. Recalling that Article 6 of the Convention is designed to ensure that no constraint is put on the worker's freedom to dispose of his wages (including annual bonuses and fringe benefits) after he has received them (for instance, by requiring him to make contributions to funds other than those approved by law), the Committee asks the Government to indicate the measures taken or contemplated to ensure the application of this provision of the Convention.

5. Article 7. The Committee notes the information provided by the Government on consumers' co-operatives. It recalls that Article 7 of the Convention is designed, inter alia, to ensure by legislation or other means that, where access to other stores or services is not available, the prices charged are fair and reasonable. The Committee asks the Government to indicate the measures taken or contemplated with a view to applying this provision of the Convention, by ensuring that stores or services as consumers' co-operatives are not operated for the purpose of securing a profit, but for the benefit of the workers concerned.

6. Articles 8 and 9. The Committee notes that the Government's report once again refers to section 17, paragraph 2, of the Agricultural Labour Law and to section 24 of the Labour Law. It recalls that the protection provided by these Articles of the Convention applies to all wages, not only to agricultural wages or minimum wages, and that section 24 of the Labour Law which regulates the attachment of wages (Article 10 of the Convention) rather than deduction, also permits the worker to pledge his wages without the fixing of any limits where a sum is due for the purchase of essential products from a co-operative society. The Committee asks the Government to indicate the measures taken to regulate deductions from wages and to inform the workers of the conditions under which and the extent to which such deductions may be made (Article 8) and to prohibit any deduction from wages with a view to ensuring a direct or indirect payment for the purpose of obtaining or retaining employment (Article 9).

7. Article 12, paragraph 2. The Committee recalls its previous comments and asks the Government to take the necessary measures to regulate the final settlement of wages on termination of the employment relation in accordance with the Convention.

8. Article 15(c) and (d). The Committee hopes that appropriate measures will be adopted to prescribe adequate penalties in the case of infringements of all the relevant provisions and to require the maintenance of adequate records.

Direct Request (CEACR) - adopted 1991, published 78th ILC session (1991)

The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

The Committee notes from the Government's report that a new labour law is under final examination. It hopes that the following points will be taken into consideration, and that the Government will be able to indicate in its next report the progress achieved.

1. Article 2 of the Convention. The Committee notes that revision of regulations concerning domestic workers is under way in Parliament. It hopes that they will be adopted in the very near future and asks the Government to indicate any progress with a view to the application of the Convention to categories of workers presently excluded from its application in whole or in part.

The Committee also notes that the updated Agricultural Labour Law adopted in 1980-81 has a wider scope of application than article 1 of the Agricultural Labour Law of 1974. It asks the Government to confirm whether the categories of persons excluded from the application of the new law are the same as those under article 6 of the Law of 1974. The Committee requests the Government to provide a copy of the said new law.

2. Article 3. Please indicate what measures have been taken or envisaged to give effect to this Article.

3. Article 4. The Committee pointed out that under section 1, note 2 and section 4 of the Agricultural Labour Law, agricultural workers may be paid exclusively in the form of allowances in kind, and the manner of payment shall be fixed by mutual agreement. The Committee hopes that the Government will take the necessary measures to ensure that payments in kind are regulated by legislation, arbitration awards or collective (and not mutual) agreement and that they account for only part of the remuneration in accordance with the Convention.

4. Article 6. The Committee notes that the Government refers to section 13 of the regulation concerning minimum wages and its amendment. The Committee observes that section 13 deals with payments other than basic wages as annual bonuses or fringe benefits whether in cash or in kind. Recalling that Article 6 of the Convention is designed to ensure that no constraint is put on the worker's freedom to dispose of his wages (including annual bonuses and fringe benefits) after he has received them (for instance, by requiring him to make contributions to funds other than those approved by law), the Committee asks the Government to indicate the measures taken or contemplated to ensure the application of this provision of the Convention.

5. Article 7. The Committee notes the information provided by the Government on consumers' co-operatives. It recalls that Article 7 of the Convention is designed, inter alia, to ensure by legislation or other means that, where access to other stores or services is not available, the prices charged are fair and reasonable. The Committee asks the Government to indicate the measures taken or contemplated with a view to applying this provision of the Convention, by ensuring that stores or services as consumers' co-operatives are not operated for the purpose of securing a profit, but for the benefit of the workers concerned.

6. Articles 8 and 9. The Committee notes that the Government's report once again refers to section 17, paragraph 2, of the Agricultural Labour Law and to section 24 of the Labour Law. It recalls that the protection provided by these Articles of the Convention applies to all wages, not only to agricultural wages or minimum wages, and that section 24 of the Labour Law which regulates the attachment of wages (Article 10 of the Convention) rather than deduction, also permits the worker to pledge his wages without the fixing of any limits where a sum is due for the purchase of essential products from a co-operative society. The Committee asks the Government to indicate the measures taken to regulate deductions from wages and to inform the workers of the conditions under which and the extent to which such deductions may be made (Article 8) and to prohibit any deduction from wages with a view to ensuring a direct or indirect payment for the purpose of obtaining or retaining employment (Article 9).

7. Article 12, paragraph 2. The Committee recalls its previous comments and asks the Government to take the necessary measures to regulate the final settlement of wages on termination of the employment relation in accordance with the Convention.

8. Article 15(c) and (d). The Committee notes that the Government's report contains no reply to the previous comments on these provisions. It hopes that appropriate measures will be adopted to prescribe adequate penalties in the case of infringements of all the relevant provisions and to require the maintenance of adequate records.

Direct Request (CEACR) - adopted 1989, published 76th ILC session (1989)

The Committee notes from the Government's report that a new labour law is under final examination. It hopes that the following points will be taken into consideration, and that the Government will be able to indicate in its next report the progress achieved.

1. Article 2 of the Convention. The Committee notes that revision of regulations concerning domestic workers is under way in Parliament. It hopes that they will be adopted in the very near future and asks the Government to indicate any progress with a view to the application of the Convention to categories of workers presently excluded from its application in whole or in part.

The Committee also notes that the updated Agricultural Labour Law adopted in 1980-81 has a wider scope of application than article 1 of the Agricultural Labour Law of 1974. It asks the Government to confirm whether the categories of persons excluded from the application of the new law are the same as those under article 6 of the Law of 1974. The Committee requests the Government to provide a copy of the said new law.

2. Article 3. Please indicate what measures have been taken or envisaged to give effect to this Article.

3. Article 4. The Committee pointed out that under section 1, note 2 and section 4 of the Agricultural Labour Law, agricultural workers may be paid exclusively in the form of allowances in kind, and the manner of payment shall be fixed by mutual agreement. The Committee hopes that the Government will take the necessary measures to ensure that payments in kind are regulated by legislation, arbitration awards or collective (and not mutual) agreement and that they account for only part of the remuneration in accordance with the Convention.

4. Article 6. The Committee notes that the Government refers to section 13 of the regulation concerning minimum wages and its amendment. The Committee observes that section 13 deals with payments other than basic wages as annual bonuses or fringe benefits whether in cash or in kind. Recalling that Article 6 of the Convention is designed to ensure that no constraint is put on the worker's freedom to dispose of his wages (including annual bonuses and fringe benefits) after he has received them (for instance, by requiring him to make contributions to funds other than those approved by law), the Committee asks the Government to indicate the measures taken or contemplated to ensure the application of this provision of the Convention.

5. Article 7. The Committee notes the information provided by the Government on consumers' co-operatives. It recalls that Article 7 of the Convention is designed, inter alia, to ensure by legislation or other means that, where access to other stores or services is not available, the prices charged are fair and reasonable. The Committee asks the Government to indicate the measures taken or contemplated with a view to applying this provision of the Convention, by ensuring that stores or services as consumers' co-operatives are not operated for the purpose of securing a profit, but for the benefit of the workers concerned.

6. Articles 8 and 9. The Committee notes that the Government's report once again refers to section 17, paragraph 2, of the Agricultural Labour Law and to section 24 of the Labour Law. It recalls that the protection provided by these Articles of the Convention applies to all wages, not only to agricultural wages or minimum wages, and that section 24 of the Labour Law which regulates the attachment of wages (Article 10 of the Convention) rather than deduction, also permits the worker to pledge his wages without the fixing of any limits where a sum is due for the purchase of essential products from a co-operative society. The Committee asks the Government to indicate the measures taken to regulate deductions from wages and to inform the workers of the conditions under which and the extent to which such deductions may be made (Article 8) and to prohibit any deduction from wages with a view to ensuring a direct or indirect payment for the purpose of obtaining or retaining employment (Article 9).

7. Article 12, paragraph 2. The Committee recalls its previous comments and asks the Government to take the necessary measures to regulate the final settlement of wages on termination of the employment relation in accordance with the Convention.

8. Article 15(c) and (d). The Committee notes that the Government's report contains no reply to the previous comments on these provisions. It hopes that appropriate measures will be adopted to prescribe adequate penalties in the case of infringements of all the relevant provisions and to require the maintenance of adequate records.