Vilnius dissolves municipal company boards ahead of labor code changes, sparking criticism

The Vilnius municipality has decided to dissolve the boards of five of its companies, including "ID Vilnius," "Vilniaus vystymo kompanija," "Miesto gijos," "Grinda," and "Vilniaus viešasis transportas" (VVT), effective October 29. This move comes just days before a significant amendment to Lithuania's Labor Code, mandating the inclusion of employee representatives on the boards of state and municipal enterprises, takes effect on November 1.

“

This is a very bad example and it shows the attitude of the Vilnius municipality administration towards employees.

Algirdas Sysas, a member of the Seimas (parliament) and chairman of the Budget and Finance Committee, has strongly criticized Vilnius's decision. He described it as a "very bad example" and accused the municipality's administration of acting unfairly towards employees. Sysas suggested that the law might need to be amended again to prevent such loopholes, stating, "We will not give up." He explained that an exception was initially included in the law to avoid extra procedures for boards whose terms were ending soon, but this was apparently exploited.

“

We will see, maybe we will correct the entry in the Labor Code before it takes effect, so that employee representatives are still required on the boards. We will not give up.

Social Protection and Labor Minister Inga Ruginienė also condemned the municipality's action, labeling it "pathetic and cynical." She argued that the timing of the board dissolutions, specifically choosing October 29, was a deliberate manipulation to avoid including employee representatives on company boards for the next four years. Ruginienė emphasized that while social dialogue is publicly discussed, such actions undermine it.

“

What the Vilnius city municipality is doing now is pathetic and cynical. While social dialogue and employee involvement are discussed publicly, manipulations are being undertaken in reality to ensure that employee representatives are not on municipal company boards for another four years.

The new Labor Code provisions aim to increase transparency and improve employee information regarding company activities. Sysas highlighted that employee representation is crucial for ensuring that decisions are not made by a small group of interested parties. Trade unions have also voiced their concerns and have approached the municipality administration regarding this matter, indicating broader opposition to the decision.

“

First of all, that employees are informed about what is happening, that there is greater transparency. Everyone talks about transparency, but when you start talking about an employee, their representative coming, a thousand reasons are found not to do it.