In northwestern province of East Azarbaijan during March 2005-2006, some 4,000 workers were laid off which is a five-fold increase against previous year, said a local labor official.
Karim Sadeq-Zadeh, Executive Secretary of Tabriz Labor House said, that most factories are unable to pay workers.
At present, about 23 production units are facing serious crises, he said.
Some 1,000 workers from East Azarbaijan province will travel to Tehran to join rallies against poor working conditions.
Sadeq-Zadeh said workers are seeking greater job security, not more wages.
Wage increase will not serve purpose of job security for laborers on temporary contracts, he maintained.
Laborers complain about poor job security, whereas producers are concerned with increasing labor costs.
Secretary of Textile Industries Association said that 46 percent hike in labor costs has resulted in closure of several textile factories nationwide.
Jamshid Bassiri said high wages, value-added tax and aggregate tax law are some of the problems facing the industry.
Officials said high production costs have caused domestic prices of textiles to go up by 30-35 percent surpassing those in Turkey and Pakistan.
Many producers argue that current Labor Law restricts them to lay off workforce to reduce production costs.
Under Iran's laws, it is rather impossible for employers to fire workers without legal consequences.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
