NEWSPAPER: POLITICAL DECISION MADE TO TEMPORARY SHUT DOWN NAIRIRT PANT

by Alexandr Avanesov

Friday, January 16, 14:44

Political decision has been adopted to temporary shut down the Nairit
Plant, a local Haykakan Zhamanak Daily writes.

“The authorities of Armenia pin no hopes with reactivation of the
plant. The process of the temporary shutdown has been launched. Almost
2,000 employees will be dismissed in February. Some 480 people will
remain at the plant to keep it in the state of conservation. Later, the
staff will be reduced to 250 people. The plant will be fully liquidated
in few years, unless there are prospects of its reactivation,” the
paper writes.

As it was reporter earlier, 1,700 employees of the Nairit Plan will be
dismissed starting February 6 2015. The employees have already received
relevant notifications. Earlier today, on 16 January, the staff of
the Nairirt Plant disseminated an open letter addressed to President
Serzh Sargsyan, wherein they demand their salaries for 18 months. The
staff recalls that the government represented by the Nairirt-2 state
CJSC has a 5 billion drams debt to the Nairit Plant CJSC and ask to
spend that amount to repay the areas of wages. They recall that the
prime minister and minister of energy and natural resources have
already declared that the salaries of the Nairit staff will not be
paid. The staff qualifies the decision as a violation of the Labor
Code of Armenia and urges the president to tackle the problem.

Nairit has been standing idle for quite a while already, with its
employees haven’t been paid wages for as long as 15 months. The
plant’s debts total 50bln AMD or $130mln (including 5bln AMD in
unpaid wages). In the 1980s Nairit had almost 10-12% of the global
rubber market. In 2006 90% of Nairit Plant was sold to Rhinoville
Property Limited for $40mln. The remaining 10% is owned by the Armenian
Government. Since Apr 2010 the plant has been idle, with its shares
given as security against the CIS InterStateBank’s loan.

From: Baghdasarian