At work on their holiday: May 1st, "a joyless day" for Iraq's laborers

Shafaq News / On May 1st, International Workers' Day, a global occasion celebrating laborers worldwide and advocating for their rights, is observed.

While the Iraqi government has designated this day as a national holiday, many Iraqi workers continue their duties without respite, despite facing multifaceted challenges and a dearth of comprehensive rights protection measures.

Iraq's labor demographic stands as one of the most vulnerable to injustices, often subject to abrupt terminations, particularly within an unregulated private sector, a contrast to counterparts in nations with stringent employment laws encompassing minimum wage standards, social security provisions, and formalized labor contracts.

Official data from the Iraqi Federation of Workers Unions revealed that the tally of formally registered workers in the social security database barely surpasses 650,000. Meanwhile, the working class grapples with deprivation, uncertain entitlements, and a paucity of viable employment prospects.

Furthermore, despite the presence of eight workers' unions and federations in Iraq, the plight of Iraqi laborers remains largely static.

Controversy looms over the pending legislation concerning retirement and social security laws, particularly regarding proposed deductions from workers' earnings throughout their tenures aimed at securing retirement benefits. Some labor factions contest these deductions, citing concerns over their magnitude, ranging between $35 to $50.

Stolen rights

In this context, economic expert Diaa Al-Muhsen emphasized the significance of International Workers' Day for a broad segment of Iraq's populace. However, he stressed that this demographic lacks effective organization, even with the existence of what is termed the Workers' Union Federation.

Al-Muhsen noted, "We observe that the rights of this segment are compromised due to weak laws and regulations."

Speaking to Shafaq News Agency, Al-Muhsen elaborated that the private sector, where many laborers are employed, remains marginalized in terms of offering opportunities for active participation in development, which could have either positive or negative impacts on workers.

He stressed that "granting the private sector a more pivotal role in development would yield several benefits, notably reducing unemployment rates. Moreover, when development is primarily driven by the private sector, its impact on workers' wages positively reverberates throughout the nation's economic landscape, fostering widespread economic activity and revitalizing the national economy."

Al-Muhsen emphasized the importance of sectoral ministries monitoring the implementation of labor retirement laws. He highlighted instances where numerous workers in factories, bakeries, and various trades are "left unregistered by employers who collude with inspection committees to minimize the workforce, resulting in injustice to others. Such practices also lead to diminished tax revenues for the state."

Notably, Prime Minister Mohammed Shia Al-Sudani announced on December 3, 2023, the enactment of the Private Sector Workers' Retirement and Social Security Law, following its approval by the Parliament in May 2023.

The government described this move as pivotal within the economic reforms it pledged, ensuring the rights of workers in this sector.

Organization of workers' work

Member of the Parliamentary Labor Committee, Hussein Arab, affirmed that "the instructions for the Retirement and Social Security Law in both the organized and unorganized sectors have been finalized and forwarded to the State Consultative Council for scrutiny and approval, awaiting its return from the council to be launched within days."

Arab clarified that "the government and parliament have provided maximum support for workers in the Retirement and Social Security Law, considering that this law has contributed significantly to the state treasury with a good retirement rate that nearly matches or exceeds that of the government retirement law."

He continued, "After the issuance of the Retirement and Social Security Law, a hotline will be established to receive any complaints from workers or employees, whether related to their non-registration in the law by the employer, working hours, worker exploitation, denial of rights, or other issues."

Arab also pointed out that "there are other laws for workers, including the Trade Union Organization Law, which will soon be legislated after its first reading, and it is crucial for the institutionalization of labor unions and rendering them legal and administrative."

Imperfect legislation

Deputy Head of the Iraqi Workers' Unions Federation, Rahim Al-Ghanimi, emphasized that "Iraqi workers require legislative enactments that are still incomplete. The current Labor Law (52) has its merits, but it falls short of meeting the demands of Iraqi workers."

Al-Ghanimi highlighted that "the minimum wage is inadequate and should be, for example, 750,000 IQD. Additionally, there is a lack of protection for Iraqi workers, and the social security system does not meet its peers' standards. All existing laws are far from meeting workers' requirements, and simultaneously, there is a need to enhance the efficiency and culture of Iraqi workers."

He emphasized the necessity to "develop all Iraqi factories and exert maximum efforts to stimulate local production and national industry, especially in light of the high number of unemployed individuals ranging from 12 to 13 million in Iraq."

Al-Ghanimi pointed out that "what has exacerbated local unemployment is the influx of foreign laborers, competing with Iraqi workers for livelihood sources," highlighting that "utilizing foreign experts to enhance professions is not detrimental, but bringing in inexperienced laborers merely to compete with Iraqi workers negatively impacts their living standards."

Labor chaos

For several years, the phenomenon of foreign labor has become prominent in Iraq, encompassing various sectors, notably with a majority from Bangladesh initially, and more recently from Syria and Lebanon, amidst the economic crises affecting these countries. This foreign labor force has been notably concentrated in restaurants and hotels.

President of the General Federation of Workers' Unions in Iraq, Sattar Danbous, previously highlighted to Shafaq News Agency the "chaos in the foreign labor file, estimated to exceed one million workers, who entered the country haphazardly without conditions, restrictions, or supervision from the Ministry of Labor and Social Affairs, adversely affecting the unemployment rate in Iraq."

Legal expert Ali Al-Tamimi clarified the legality of the presence of foreign workers in Iraq, stating that "there is no specific law regulating foreign labor in Iraq. The applicable laws are the Labor Law No. 37 of 2015 and the Foreigners Residence Law No. 118 of 1978."

These laws stipulate "the necessity for workers to obtain work permits, passports, entry stamps, and other security conditions. Violators are usually fined an amount not exceeding $500 and then deported based on the decision of the investigation court," according to Al-Tamimi.

He further explained that "the presence of these workers, estimated at one million, without proper planning resembles the influx of imported cars. It impacts the economy, criminal security, unemployment, and capital flight."

He emphasized the necessity for "legislating a specific law detailing all aspects of their presence and deportation. Information indicates that a large number of them work without residency permits, and the only legal solution is to deport them to their countries."

inactive factories

Regarding the issue of factories and plants and their role in employing labor and reducing unemployment, Aqeel Raouf Ahmed, Chief Advisor of the Industries Federation, stated that "there are approximately 67,000 registered factories in Iraq. Over the past two years, 30,000 factories that were previously operational have been reinstated. However, there are still 37,000 factories currently inactive."

Ahmed clarified in a previous interview with Shafaq News Agency that "the Prime Minister heavily relies on the private sector in the construction of one million housing units, as discussed in a recent meeting with him, where Iraqi products will have priority in furnishing these units."

He added, "The Prime Minister has been urged to exempt raw materials from taxes to contribute to the reactivation of factories, along with reducing electricity and fuel costs, protecting local products, providing land ownership to industrialists, and exempting accumulated taxes. All these requests were implemented within just two days."

Ahmed further stated that "decisions have been made, awaiting implementation. However, the Prime Minister has affirmed his determination to execute them. If the inactive factories are reinstated, all other factories will be revitalized as they complement each other. This will lead to the employment of labor and a reduction in unemployment."

The private sector

Abdul Zahra Al-Hindawi, spokesperson for the Ministry of Planning, affirmed that "workers are integral to the economic system and are essential components in the developmental process. Therefore, long-term plans and strategies have been devised to enhance working conditions across various sectors, particularly in the private sector, which has faced challenges leading to decreased interest compared to the public sector."

Al-Hindawi added that "the direction was to enact laws and legislation to ensure the rights of private sector workers similar to their counterparts in the public sector. Accordingly, the Retirement and Social Security Law was issued, granting private sector employees, across its various facets and details, retirement benefits and other privileges enjoyed by government employees."

In the pursuit of developing the private sector to be more efficient, influential, and contributing to the national GDP and developmental process, "the Ministry of Planning launched a Private Sector Development Strategy until 2030 in previous years. This strategy comprises three stages: preparation, empowerment, and leadership and entrepreneurship for the private sector. It is believed that development cannot proceed properly without a genuine and positively contributing private sector in the economic landscape," according to Al-Hindawi.

He explained that "this strategy led to the formation of the Private Sector Development Council for the first time in Iraq. The council was initially established on a temporary basis in 2021 and has currently transitioned into a permanent council. To empower this council further, the Prime Minister has agreed to personally assume its presidency, upon the Ministry of Planning's request."

Al-Hindawi emphasized that "with its general and administrative structure, this council will be the true voice and representative of the private sector in shaping economic policies and implementing these developmental policies in Iraq."

Unemployment crisis

Al-Hindawi revealed that "the unemployment rate in 2021 reached 16.5%, which is higher than previous years due to the repercussions of the COVID-19 pandemic, including the suspension of economic activities and developmental events." He affirmed that "the ministry is currently conducting a comprehensive survey to determine the new unemployment rates."

Al-Hindawi speculated a decrease in unemployment rates in Iraq following the measures taken during the past two years, 2022 and 2023. These measures included numerous appointments, resuming work on many projects, and initiating new projects. For instance, projects aimed at easing traffic congestion in Baghdad provided thousands of job opportunities for youth, alongside increased economic activity.

Labor Day Story

The story of International Workers' Day began in Australia, where workers took to the streets in protests on April 21, 1856, demanding an 8-hour workday. These protests continued annually thereafter to achieve this demand.

On May 1, 1886, more than 340,000 Americans declared a strike, leaving work. The labor protests were met with police violence on May 4 in Haymarket Square, resulting in the loss of lives of many workers.

In 1889, the International Workers' Conference was held, attended by 400 delegates. A resolution was passed to establish the 8-hour workday.

The conference agreed to a proposal by a representative of the workers of Bordeaux, France, Louis Lavigne, to designate May 1 as International Workers' Day. The celebration of this day began in 1890 and continues until today, becoming part of the culture of all countries around the world.