“Souzmetallresurs” announced the stoppage and further conservation of ore-dressing and processing enterprise and ferromolybdenum plant in Zhireken town in Zabajkalskij Region. The closure was caused by molybdenum and ferromolybdenum prices decrease in last three years and increase of production costs.

“Souzmetallresurs” management, administration of Zabajkalskij Region, federal government and MMWU regional committee were developing different ways of support starting from spring 2013, but in conditions of constant growth of pieces on raw materials they wasn’t successful.

From October, 1; 150 of almost 1000 workers will work in conditions of a part-time working week scheme and others will be dismissed because of closure of the enterprise.

On November, 12 managing company ZAO “UK “Souzmetallresurs””, “Zabajkalskij” MMWU regional committee and MMWU committee of OAO “Zhirekenskij GOK” concluded the agreement because of closure of the enterprises. The workers that will be dismissed by agreement of the parties will receive one-time allowance in a size from 4 till 6 their average wages depending on their work experience. The low-paid workers (till 10 000 rubles) can receive the one-time allowance in a size till 7 average wages.

The workers dismissed by agreement who have unpaid bank loans will be paid additional allowance in a size of 17 000 rubles.

The categories of workers determined by agreement (women who have children of the age not older than 3 years, single mothers or another custodians of disabled children) will receive additional compensation in a size of 25 000 rubles.

All dismissed workers will receive compensations provided by legislation of the Russian Federation. The workers of production complex in Zhireken will be employed on work places (about 200 vacancies) at other enterprises of the company and alternative production sites that will be created in the town.

MMWU International Department

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