The boards of Vilnius’ municipal companies will remain in place until the end of their terms, the city administration director said Friday, reversing a plan to replace several boards before new rules requiring employee representation take effect.
“We are calling off the dissolution of the boards,” Adomas Bužinskas said in a social media post.
Earlier this week, Vilnius authorities said they planned to dismiss the boards of ID Vilnius, Vilnius Development Company, Miesto Gijos, Grinda and Vilnius Public Transport on October 29 and select new members before amendments to Lithuania’s Labour Code take effect November 1.
The amendments require state- and municipality-owned companies to include employee representatives on their boards.
Bužinskas had admitted the October 29 date was chosen to ensure new boards could be selected before the law took effect and serve full four-year terms without employee representatives.
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The plan drew criticism from trade unions, business groups and political opponents.
Bužinskas said the city decided to abandon its plan after the issue became a political matter and the governing majority indicated it would seek to bring forward the effective date of the legislation.
“We see that the inclusion of employee representatives has gone from being a management issue to a matter of heated political debate, while the governing majority has announced that it will register an amendment to bring forward the law’s effective date,” Bužinskas said.
“Since we will no longer be able to elect new boards under the law currently in force, we are saving everyone’s time and stepping back.”
The existing boards will serve out their remaining terms, after which new boards will be appointed in accordance with the law, he said.
Bužinskas stressed that the reversal did not change his personal opposition to the way the legislation addresses employee representation.
“I think the law is trying to solve a complicated problem in a superficial way,” he said, arguing that it does not provide sufficiently clear ways to involve employees in corporate governance or establish who would represent them.
He also warned that the new system could require the city to replace some board members whose expertise is considered essential to the companies.
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