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Wage crisis hits 27,000 workers as Iran's top steel plant remains crippled

May 7, 2026, 10:46 GMT+1

Over 27,000 workers at the Mobarakeh Steel Company – Iran's largest steel producer – remain in limbo following missile strikes that have paralyzed production at the sprawling Isfahan complex, according to the news site Rouydad24.

The facility, including a power substation and an alloy steel production line, was hit twice during Israeli-US attacks earlier this year, causing major disruptions to production and operations at the complex.

The report said only about 2,000 employees – mainly management and administrative staff – have returned to the site since the attacks during the war involving Iran, the US and Israel that began in late February.

Many workers have reported a sharp drop in income. Specialized technical staff who previously earned more than 100 million tomans a month – about 1 billion rials, or roughly $568 – are now receiving wages close to the legal minimum, around one-fifth of their previous pay, according to the report.

The pay cuts come as management seeks state support and unemployment insurance. Workers told Rouydad24 they fear these reduced wage calculations will permanently lower their future insurance benefits if formal mass layoffs are eventually finalized.

From steel production to the gig economy

With production lines largely inactive, a labor exodus is underway. Many former steelworkers in Isfahan have turned to driving for ride-hailing platforms to survive, while others have migrated to factories in Yazd and Khorasan provinces in search of steady work.

The uncertainty has triggered a surge in online job-seeking channels specifically for former Mobarakeh project workers. This shift highlights a deepening labor crisis in a sector that was already struggling with skilled worker emigration before the conflict began.

Mobarakeh Steel is one of Iran’s most strategic and profitable assets, and experts warn the fallout could destabilize the broader economy. Current estimates suggest it will take at least four years for the facility to return to its pre-war operating capacity.

While the head of the government’s information office insists that salaries for over 30,000 workers are being paid in full, the company’s own public relations office was more cautious, telling Rouydad24 that while they could not confirm specific allegations, "war conditions naturally change everything."

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