Lithuanian unions push for employee seats on state company boards

Lithuanian trade unions are advocating for a significant change in corporate governance, calling for employee representatives to be granted seats on the supervisory boards of state and municipal enterprises. They believe this inclusion is crucial for enhancing transparency and social dialogue within these entities.

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We are not talking about exclusive privileges, but about the opportunity for the employees' voice to be heard when making strategic decisions.

The unions are referencing proposed amendments that would allow employee representatives to constitute at least one-fifth of the supervisory boards. They highlight that similar models are common practice in many European Union countries, including Germany, Austria, and Scandinavian nations. This approach, they argue, is not about granting special privileges but ensuring that employees' voices are heard in strategic decision-making.

"We are not talking about exclusive privileges, but about the opportunity for the employees' voice to be heard when making strategic decisions," stated employee representatives in a press release. They emphasize that employees, through their daily involvement, possess firsthand knowledge of internal processes, challenges, and risks. Incorporating their perspectives, the unions contend, will enable timely problem identification and foster more responsible management of public assets, balancing efficiency with social responsibility.

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Employees see internal company processes, problems, and emerging risks directly every day. Their involvement will help identify problems in a timely manner and ensure more responsible management of public assets.

Trade unions stress that the proposed model would not give employee representatives a majority or special rights. Instead, delegated board members would share the same duties and responsibilities as all other board members, acting in the company's best interest. They point out that employee involvement in strategic decision-making in Lithuania remains limited, and strengthening collective dialogue is essential for reducing social tension and building more balanced labor relations. Signatories to the appeal include the Lithuanian Confederation of Trade Unions, the Lithuanian Trade Union "Solidarumas," and the Republican United Trade Union.

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State-owned enterprises must be managed not only efficiently but also socially responsibly.