Vilnius Replaces Company Boards to Sidestep New Employee Representation Law

The Vilnius city municipality has dissolved the boards of five of its companies, a move critics argue is designed to circumvent a new law mandating the inclusion of employee representatives. The dismissals occurred on October 29, just days before the new labor code amendments take effect on November 1.

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The employee's voice must be and is heard in the Vilnius city enterprise group.

According to Adomas Bužinskas, Vilnius's administrative director and a member of the ruling TS-LKD party, the municipality found the new regulation unacceptable. By reforming the boards, the municipality aims to allow them to operate for their full four-year terms under the laws currently in effect. This decision, he stated, is "dictated by practice and argued."

However, Simonas Gentvilas, an opposition MP from the Liberal Movement, condemned the action as "Bebrizmas," a Lithuanian term for a cunning trick or deception. He argued that if the government dislikes a law passed by parliament, it cannot simply dissolve company boards and reappoint them just before the law takes effect. Gentvilas warned that Vilnius is setting a dangerous precedent that other political forces could exploit.

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This is Bebrizmas, which we have been trying to eradicate in Lithuania for many years.

Laurynas Kasčiūnas, chairman of the TS-LKD party, defended the municipality's decision. He stated that employee voices can still be heard through traditional channels like employee councils, trade unions, and direct dialogue. Kasčiūnas emphasized that a strong board leads to a successful company, which in turn creates good working conditions for employees. He also noted that the new regulations leave practical ambiguities regarding the selection criteria and potential conflicts of interest for employee representatives.

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So they can work for the entire four-year term according to the laws currently in force.