The work stoppage at the Deno Gold Mining Plant in Kapan continued into its third day. Plant Director Robert Faletta has dismissed 40 employees in the latest development at the troubled plant where workers are protesting a number of issues, notably a new bonus arrangement tied to productivity.

Company spokesperson Rubina Ter-Martirosyan has stated that the 40 laid-off workers were the ones who petitioned the plant director on July 6, protesting working conditions and threatening a strike. Mrs. Ter-Martirosyan said, "For some inexplicable reason those workers chose July 6 not to show up for work. I can't say for certain but it's likely that some of them are striking as we speak. The lists are being updated." She added that plant management was preparing a press release on the situation and that this move by the plant director set off a sit-down strike in front of the Kapan Municipality. Mayor Artur Atayan came out and met with the strikers and urged them to end their picket. "Think what you are doing. Return to work. Management has promised to sign new work contracts and change working conditions,' Mayor Atayan told the workers, adding that if they didn't the plant would be forced to close and 1,000 workers would be jobless. The mayor said that he was scheduled to meet with Robert Faletta on July 16 at 3:00 pm to discuss the situation. This follows at meeting held on July 14 involving Syunik Regional Administrator, the Kapan Mayor, Robert Faletta and the plant's trade union head designed to end the work stoppage. The talks proved to be fruitless. After the meeting Syunik Regional Administrator Sourik Khachatryan told the workers that Deno Gold was ready to make certain concessions including a 6 hour work day instead of eight and that the proposed bonus plan tied to ore content at the mine would be scrapped. He also said that new working conditions would be codified with the participation of workers.