The Federation of Industries reveals the secrets of stopping the Iraqi factories... Massive layoffs of workers
economy breaking Iraqi laboratories
Shafaq News/ The Iraqi Federation of Industries counted, on Sunday, the number of registered and unregistered factories, as well as the disabled ones, and while
identifying some of the reasons for stopping the factories, it
confirmed the layoffs of huge numbers of workers during the last period.
The head of the union, Adel Akab, told Shafaq News Agency,
"The factories registered in the union amount to about 60,000 factories, of which 43,000 are unemployed, while the
unregistered ones are estimated at half the number of registered factories or more."
Akab attributed the reasons for the factory owners' resort to not registering their factories to
"the bureaucracy in government departments, as well as
charging them with high debts and rents from state or municipal real estate, in addition to
flooding the market with foreign goods that local production cannot compete with,
especially after the recent lifting of some customs exemptions.". He added,
"Customs used to take from local factories 23 dollars per ton, and then
it became 150 dollars, and
currently 62 dollars, and
the government was supposed to preserve the local industry,
as it raises customs on the Iraqi product and at the same time exempts some importers from customs."". He continued,
"In addition to the
lack of response from government departments to factory owners, as for the Ministry of Oil, it does not supply factories with fuel (kerosene), and if it finds kerose in them, it considers it smuggling, which made the factory owners confused." Akab said,
"As a result, we are currently witnessing the layoffs of large numbers of workers after the factories stopped.
About a year ago, we had 1.3 million workers in registered factories alone, but now there is a sharp decline in the employment of labor, and there is no deafening ear for this issue."
The Ministry of Planning and the Iraqi Central Bureau of Statistics confirm that one-third of the factories of the Ministry of Industry are out of business.
Most of the companies and factories of the Ministry of Industry and Minerals had stopped production due to the looting and sabotage of their companies and factories, which occurred after the coalition forces entered Iraq in 2003, in addition to flooding the markets with cheap imported goods.