Former ZCMC employee slams 'absurd' lawsuit, accuses company of retaliation

A former employee of the Zangezur Copper-Molybdenum Combine (ZCMC) has condemned as “absurd” the nearly 5 billion AMD lawsuit filed against him and seven others by the mining giant, calling it an attempt to silence dissent and intimidate current employees.

“This is clearly intended as a warning to other employees not to raise their voices or express dissatisfaction,” the employee, Shavarsh Margaryan, told Panorama.am in an interview on Friday. “They want to show others that they’ll face severe consequences, not just dismissal.”

ZCMC, one of Armenia’s largest industrial enterprises, is demanding 4.76 billion drams (approximately $12 million) in damages from Margaryan and seven other former ZCMC employees who participated in a strike earlier this year. The strike, held from January 31 to February 11, called for better working conditions, health insurance and higher wages.

Margaryan and the other defendants – Vahe Mkhitaryan, Tigran Atayan, Karen Arshakyan, Karen Andreasyan, Gor Babajanyan, Vahe Babajanyan and Artur Babajanyan – were dismissed shortly after the protests. ZCMC claims the strike was illegal and caused significant financial losses.

According to Margaryan, the lawsuit is part of a broader campaign of retaliation. He claims that at least one dismissed employee had his property seized, preventing him from selling his home.

In response, the former employees have filed counter-lawsuits, challenging their dismissals and demanding reinstatement. Two court hearings have taken place, with proceedings expected to continue through July.

Margaryan said the presiding judge attempted to mediate a settlement, suggesting compensation to resolve the matter, but neither side agreed. “We’re standing firm on our demands, and so is the company. We’re now in the evidentiary stage of the trial. I expect the proceedings to wrap up in July,” he noted.

Asked whether the workers can afford to pay the penalty if ZCMC wins the lawsuit, Margaryan replied: “It’s absurd. Of course, I’d like to have that much money, but I haven’t earned anything close to that in my entire life.”

The former employees remain confident they will win in court and be reinstated to their jobs.

“I intend to win this case and return to my job. I also hope that public pressure will force a change in ZCMC’s management. We simply cannot work with the current management, which even the company’s lawyers acknowledged in court. They’ve said that even if the court finds the dismissals unlawful, they'd rather pay compensation than allow us back. That's why I believe new leadership is needed before the trial ends, so we can return to work peacefully.”

The Armenian government owns a 21% stake in ZCMC, but Margaryan criticized what he called the authorities' inaction.

“All we see from the government is inaction,” he said. “When officials say they can’t interfere, it’s hard to believe. We’ve seen them intervene before, like in 2021, when 38 people were fired in Kajaran on government orders. If the government owns 21% of the company, it has the power to call an extraordinary shareholder meeting and discuss the matter. Instead of dismissing employees, they should resolve the problems. We were fired for speaking up.”

Margaryan and his colleagues demand justice and vow to continue their struggle to restore it.

“This is not just our issue – it’s a national issue. There are problems in other parts of Armenia as well, but if people see that speaking out only leads to punishment, they’ll remain silent. What’s happening to us should serve as an example. That’s why I urge active citizens to raise their voices and pressure the government into action,” he concluded.