04/28/2010, 00.00
IRAN
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Unemployed increase as Iran's economy languishes

Layoffs increase by 49% in Tehran and 70% nationally. The country is rich in resources, wasted on nuclear projects. Imports destroy local economies, but favour China in exchange for international political support.

Tehran (AsiaNews) - Layoffs and closing factories are increasing throughout Iran, provoking protests of workers unions and alarm bells that warn of an unprecedented crisis in the country. The regime's authorities do not even hide the concerning data. The percentage of redundancies has increased by 49% in Tehran and 70% on a national level compared to last year's data. During the past week, Rooz , an online agency close to the opposition, reports at least 2,500 workers were laid off in the leather industry in Ilam and Mashad. In recent weeks, sources within the unions say, the number of workers made unemployed amount to 4 thousand.

The crisis in Iran has reached such a level that Alireza Mahjoub, the head of the House of Labor - the official workers union – has forecast the future closure of hundreds of medium and large businesses and the subsequent dismissal of 200 thousand workers a year.

The wave of closures has also hit the leather factories of Mashhad (the second largest city). According to various experts, so far at least 1500 workers have been sent home. In this area, heavy competition of low cost products imported from China and Thailand are having a devastating effect on the local market. Over the past five years the demand for labour has fallen. Imports, especially from China - encouraged by President Ahmadinejad in exchange for international political support - has led to the failure of many factories.

In Tehran, the number of workers at the Pars Electric, one of the city's biggest employers, fell from 3500 to 150 last year, according to employment agency (ILNA). In Tabriz, many workers in the manufacturing sector have been dismissed. Among the companies affected by the cuts, even giants like Motogen (which produces electric motors) and Bonyan Diesel engines (generators).

Many industries in the province of Fars and in the region of Kheirabad are facing serious problems and developing a policy of staff reductions, as a result there have been an increasing number of strikes and protests to which, however, the law seems to be deaf.

The economic crisis, an industry in decay and poverty of millions of workers in Iran are only some of the consequences unpopular policies of the Islamic regime, which is wasting the country’s vast resources on its attempts to develop nuclear arms. The country was in recession even before the elections last year and the situation will only worsen with the implementation of the draft Law on the cut of state subsidies to transport, energy and essential goods like rice and flour. If approved, the plan will send inflation through the roof. Without subsidies, the factories of the electricity sector, currently working at a loss or below capacity, will began to close and dismiss staff. Already in February, the non-arrival of public funds led to the closure of three electrical systems, following the loss of 1500-2 thousand jobs.

The House of Labour has proposed to organize a series of events for the Labour Day May 1, but the interior minister and the governor of Tehran has already rejected the request.  

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