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Armen Davtyan

Kapan Miners: Strikes Continue to Plague Deno Gold

It appears that the strikes and protest actions of Deno Gold Mining Company workers at the former Kapan Mining Enrichment Combine have become an ongoing tradition. Strike actions are quickly organized and just as quickly halted, when the workers meet with the Regional Governor of Syunik. Another strike is looming, disgruntled workers say.

The latest wave of protests commenced on January 17, organized by workers at the Shahumyan mine. Employees refused to man their posts, before the Saturday night shift change. Contrary to previous work walk-outs, this time, angry employees failed to inform plant management of their intentions. They didn’t even notify the local labor union. Sourik Toumanyan, the local union leader, was notified only when the walk-out had begun. While there was no strike committee, the union stood in support of the workers. “Well, they’ve been petitioning management for months now, demanding a salary raise and doing away with the existing pay scales,” said Mr. Toumanyan, noting that Deno’s managing director Robert Faleta had failed to respond to their petitions and had only made promises. “He’s making promises again, but we don’t take him at his word. He constantly deceives us,” Mr. Toumanyan added. According to the working arrangement, the labor union must notify management at least seven days in advance of an impending work action. Salaries of the mine workers were cut when the financial crisis caused metal prices to decrease.

“Metal prices have rebounded and so should our wages”

“They told us that metals had depreciated in value and that we should go along with their plans to keep the company afloat. We agreed to take a cut. We are going down into the mine for a monthly wage of 100,000 AMD ($260). But now metal prices have rebounded and our wages should also,” says Sos Hakhyan, a mine worker. Miners argue that if wages can’t revert to pre-crisis levels, their salaries should at least reflect the working conditions and difficulties they face on the job. The miners also said they were amazed to see their coworkers being cut and replaced by others several days later. “There’s something fishy going on here. They are cooperating with the English. Local Kapan guys get the pink slip and management hires their relatives instead. If there was work and money, why did they fire us?” ask Karineh Avagyan and Gayaneh Dallakyan, who have been out of work since December 1, 2009.

Workers also blame local labor leader

While the labor union leader says he backs the workers, those on strike blame him as well for their predicament. “Why doesn’t he inform his higher-ups in Yerevan about what’s going on down here. We pay union dues from our salaries for such things. They should hear about our plight and make the trip to see with their own eyes. Sourik tells us it’s Sunday and the union bosses aren’t working,” says Sos Hakhyan. Union leader Toumanyan retorts, “Everyone who needs to know has been informed. It’s just that everything needs to be done by the book, so that he can defend our actions and struggle to the end.” On January 17 and 18, the strikers sat down with plant director Robert Faleta to discuss their grievances, most notably their demand for wage hikes. Five separate mining groups, representing different areas of expertise, sat down with management. All appeared satisfied with the discussion except for the stone excavators and haulers. They have the hardest job of all. Those working on an hourly pay basis also want their salaries raised.

Regional officials visit plant to “mollify” workers

On January 18, Kapan Mayor Artour Atayan visited the plant. As of January 19, strikers and plant management still hadn’t reached an agreement. Reporters weren’t allowed to enter the plant premises. We were told that there wasn’t anything official to report. All we were able to find out was that the union leader had been informed that Faleta would convey their wage demands to the mine owners. It’s hard to predict what the owners will do, but one thing is clear. After the visit of Regional Governor Sourik Khachatryan, all those strikers who were raising their voices and demanding an across the board wage hike for all, silently went back into the mines at midnight on January 20. According to my sources, plant management, especially security staff, are trying to identify the ring-leaders behind the strikes. Rumors are already circulating that the “agitators” are no longer at the plant. The rest of the workers are now waiting for some sort of labor agreement to be signed. If disgruntled workers believe that this latest round of promises is another bunch of lies, then the on again, off again strike, might make a traditional comeback.

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