Global financial crisis deprives families of their main source of income
The copper-smelting plant is the only functioning factory in Alaverdi town, and the important means to provide relatively normal living conditions for its people.
At the beginning of 2009 the plant started to slow down production as reduced international demand meant the factory could no longer sustain its output. All indicators show that the factory will most likely shut down completely, leaving Alaverdi’s people without their main source of employment, stability and security.
If the plant is closed, life in Alaverdi will stop Alaverdi is located inside a steep mountain gorge. The existence of the town itself is bound to the establishment of the Alaverdi copper plant more than 200 years ago. During the Soviet period Alaverdi with a population of 25,000 used to be a centre of metallurgic industry in the South Caucasus owing to the largest copper production facilities.
When the factory was closed during the collapse of the Soviet Union many residents began to emigrate to Russia in search of a job. Some years later the plant was privatized and restarted, becoming part of the Valex Group, the only producer of refined copper in the Caucasus. Booming production instilled new hope in people for a better future and it wasn’t long before Alaverdians started returning and settling down in their hometown.
“Our people are dependent on the plant. The problem is that no other opportunities exist in the town. Alaverdi cannot rely on agriculture as there are scarce lands here; we have mostly ore mines”, says Sasoon Khechumyan, an official from Alaverdi Municipality.
Inside the deep ravine high-storey buildings rise up without any lands to cultivate. The town was established around the foundry for its employees and drew workers with the promise of stable incomes.
Today, the global financial crisis is threatening the future of the town with its 17,000 inhabitants. The sense of security that the Valex Group has tried hard to foster has been severely undermined.
The Tatoyan family of 10 is one of many in Alaverdi that has lost its only permanent income.
Mamvel Tatoyan and his wife remember with deep sorrow the past years of relative welfare when Mamvel had a job in Alaverdi foundry as a carpenter and could earn some extra money by working in the construction field on demand.
“We didn’t have serious financial problems before; my husband earned enough. We could also make our housing conditions better thanks to my husband’s skilful hands, and protect us from the cold winters,” recalls Anahit Tatoyan, 54.
Now the strong competition in the construction field has left no place for Mamvel and has deprived him of the opportunity to earn extra money. However, the stable job at the plant was an adequate source of income to support the large Tatoyan family.
“Though the salary wasn’t high I could at least provide some decent living for my family”, shares 55-year-old Mamvel. \'\'Besides, the plant provided essential food products for its employees”.
The plant has also been carrying out social projects, supporting local schools and kindergartens. People had a feeling of some safety, they had their stable wages. They could take loans as the plant provided a guarantee. And people were sure they could pay off their debts every month.
Mamvel is the sole bread winner in his family. He has to care for his wife, a son, a daughter and five granddaughters, the youngest being only three years old. Moreover, his daughter has some serious health problems that have exacerbated the difficulties the family now faces.
“There is no job for my wife, no job for my son and me. Recently, my son has left for Russia in the hope to earn some money there. I am also planning to leave, as I see no other opportunity to support my family. I live now on debts and I need to pay them back somehow”, he says desperately.
“Most of the households in Alaverdi have at least one person who has left the country in search of a job. People often see no choice but to leave their families for a long period. As a result children grow up in incomplete families without a father or mother to take care of them”, says Sasoon Khechumyan, from the Alaverdi Municipality.
The situation we are now in seems absurd to me. There is a healthy labour force but there are no job opportunities However, the global financial crisis has affected Russia as well and it has become difficult for seasonal job seekers to find gainful employment there.
Officially, 300-400 people in Alaverdi have lost their jobs since the beginning of the year. However, the statistics do not give the complete picture. The numbers could be much higher should they include the companies, enterprises and local entrepreneurs that have been providing the plant with supplies.
"These are just pure numbers. They do not take into account the firm family links that Armenians give meaning to. Every Armenian tries to financially support not only his own family but also his relatives. It means the numbers will increase”, says Sasoon. “I am afraid if the plant does not restart in the near future the town will face a disaster”.
While the people of Alaverdi are very hard working and ready to do any job there is simply nowhere they can work.
“The situation we are now in seems absurd to me. There is a healthy labour force but there are no job opportunities”, adds Sasoon.
Walking along the narrow streets one can see the worried and pensive faces of Alaverdians. Once proud and happy people they rarely smile now. The only smiles are on the street lanterns bearing posters of carefree Alaverdians with the logo of the Valex Group and the slogan, "I love you, Alaverdi".
At the beginning of 2009 the plant started to slow down production as reduced international demand meant the factory could no longer sustain its output. All indicators show that the factory will most likely shut down completely, leaving Alaverdi’s people without their main source of employment, stability and security.
If the plant is closed, life in Alaverdi will stop Alaverdi is located inside a steep mountain gorge. The existence of the town itself is bound to the establishment of the Alaverdi copper plant more than 200 years ago. During the Soviet period Alaverdi with a population of 25,000 used to be a centre of metallurgic industry in the South Caucasus owing to the largest copper production facilities.
When the factory was closed during the collapse of the Soviet Union many residents began to emigrate to Russia in search of a job. Some years later the plant was privatized and restarted, becoming part of the Valex Group, the only producer of refined copper in the Caucasus. Booming production instilled new hope in people for a better future and it wasn’t long before Alaverdians started returning and settling down in their hometown.
“Our people are dependent on the plant. The problem is that no other opportunities exist in the town. Alaverdi cannot rely on agriculture as there are scarce lands here; we have mostly ore mines”, says Sasoon Khechumyan, an official from Alaverdi Municipality.
Inside the deep ravine high-storey buildings rise up without any lands to cultivate. The town was established around the foundry for its employees and drew workers with the promise of stable incomes.
Today, the global financial crisis is threatening the future of the town with its 17,000 inhabitants. The sense of security that the Valex Group has tried hard to foster has been severely undermined.
The Tatoyan family of 10 is one of many in Alaverdi that has lost its only permanent income.
Mamvel Tatoyan and his wife remember with deep sorrow the past years of relative welfare when Mamvel had a job in Alaverdi foundry as a carpenter and could earn some extra money by working in the construction field on demand.
“We didn’t have serious financial problems before; my husband earned enough. We could also make our housing conditions better thanks to my husband’s skilful hands, and protect us from the cold winters,” recalls Anahit Tatoyan, 54.
Now the strong competition in the construction field has left no place for Mamvel and has deprived him of the opportunity to earn extra money. However, the stable job at the plant was an adequate source of income to support the large Tatoyan family.
“Though the salary wasn’t high I could at least provide some decent living for my family”, shares 55-year-old Mamvel. \'\'Besides, the plant provided essential food products for its employees”.
The plant has also been carrying out social projects, supporting local schools and kindergartens. People had a feeling of some safety, they had their stable wages. They could take loans as the plant provided a guarantee. And people were sure they could pay off their debts every month.
Mamvel is the sole bread winner in his family. He has to care for his wife, a son, a daughter and five granddaughters, the youngest being only three years old. Moreover, his daughter has some serious health problems that have exacerbated the difficulties the family now faces.
“There is no job for my wife, no job for my son and me. Recently, my son has left for Russia in the hope to earn some money there. I am also planning to leave, as I see no other opportunity to support my family. I live now on debts and I need to pay them back somehow”, he says desperately.
“Most of the households in Alaverdi have at least one person who has left the country in search of a job. People often see no choice but to leave their families for a long period. As a result children grow up in incomplete families without a father or mother to take care of them”, says Sasoon Khechumyan, from the Alaverdi Municipality.
The situation we are now in seems absurd to me. There is a healthy labour force but there are no job opportunities However, the global financial crisis has affected Russia as well and it has become difficult for seasonal job seekers to find gainful employment there.
Officially, 300-400 people in Alaverdi have lost their jobs since the beginning of the year. However, the statistics do not give the complete picture. The numbers could be much higher should they include the companies, enterprises and local entrepreneurs that have been providing the plant with supplies.
"These are just pure numbers. They do not take into account the firm family links that Armenians give meaning to. Every Armenian tries to financially support not only his own family but also his relatives. It means the numbers will increase”, says Sasoon. “I am afraid if the plant does not restart in the near future the town will face a disaster”.
While the people of Alaverdi are very hard working and ready to do any job there is simply nowhere they can work.
“The situation we are now in seems absurd to me. There is a healthy labour force but there are no job opportunities”, adds Sasoon.
Walking along the narrow streets one can see the worried and pensive faces of Alaverdians. Once proud and happy people they rarely smile now. The only smiles are on the street lanterns bearing posters of carefree Alaverdians with the logo of the Valex Group and the slogan, "I love you, Alaverdi".
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