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Employees of Russian Company in Armenia Protest Mandatory Pension Payments

A group of South Caucasus Railway CJSC employees began protesting outside the company's head office early this morning, complaining about a portion of their January salaries being withheld for new mandatory pension payments.

The employees working in the Vanadzor, Armavir, Masis, Gyumri, and other regional divisions, as well as divisions in the capital, told journalists the company doesn't have a right to withhold money from them; they weren't informed; and the Constitutional Court decision is being ignored. 

"Other deductions were made from our salaries, and the 5% [the mandatory pension payment] was calculated on the gross salary: Deductions are made from other[s’ salaries] as well, but at least the salary is raised a little, then the percentage is taken out. When we talk about raising salaries, they tell us, you’re a Russian company, Armenia’s laws don’t apply to you. How is it then that the [law on] pension applies to us?" a cashier, Roza Petrosyan, informed Epress.am. 

The employees are asking that deductions not be made until the Constitutional Court issues a final ruling. In addition, employees weren't informed to which pension fund their payments would be transferred and whether they will be refunded if the Court considers the new law to be unconstitutional.

Petrosyan said this is not the first time the company has withheld a portion of their salaries without warning employees first. "When there was hail in Armavir, they withheld 20,000 dram [about $50 USD] from each of us, to help the victims. They said, we'll give it back to you later, but they didn't return a single penny. This assistance should've been voluntary, not by force," she said.

The disgruntled employees told the press if the management doesn't agree to see them and the matter is not resolved today, they will continue to protest and all the other employees will join them. 

By Petrosyan's account, about 50% of the 3,000 employees were born after 1974; thus, the new mandatory pension contributions apply to them. The Epress.am correspondent attempted to meet with the company director or at least the accountant, but first, they asked her to come after the break, then they said the accountant is in a meeting. 

The protesting employees waited till 3 pm, when they were promised a meeting with the director. But at 3 pm, there was a dispute between the employees and head of the company's public relations department Vahe Davtyan, who asked that only 15 people go up to talk to the director, whereas the protestors wanted all to be allowed to go. The parties came to an agreement: 20 employees would be allowed to go, but the company management insisted that journalists not be present at the meeting. The meeting was still underway at the time of publication (of the original Armenian version).