There are reports that Iran’s auto parts industry, the second largest industry in the country, could completely collapse by next week.
The industry has faced numerous problems in the past few years including the sharp drop in production and the high number of employee layoffs.
According to an Iranian news agency, Iran’s auto parts industry has around 550,000 direct employees from which 30% have until now been laid off.
In a report published today, Tasnim added that another 70% had been suspended from work.
“It can be said that in 2018, around 100,000 workers became unemployed”, the news agency, which is close to the Revolutionary Guards Corps said.
“If we do not quickly come up with a solution for the auto parts industry today, we will face a serious crisis next week,” the Secretary of the Part Maker’s Association said.
According to Tasnim, if the current problems in the car industry are not solved, the industry will face another wave of layoffs. The second wave will incorporate around 80,000 to 100,000 workers and will put the number of unemployed workers at 200,000 bringing with it an end to the auto parts industry.
According to a member of the Managing Board of the Supreme Center for Islamic Labor Councils, there are currently 180 large and small auto parts manufacturers in Alborz province which employ around 200,000 workers.
“These debts have gone unpaid even though the price of automobiles have increased,” he said adding that the result would be the unemployment of the 200,000 workers in Alborz province.