To avoid confusion between the two dismissals, let’s discuss each of them separately. The first dismissal was organized so that employee representatives would not interfere with the boards for another four years.
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From November 1, amendments to the Labor Code come into effect, requiring the inclusion of an employee representative in the boards of newly formed state and municipality-owned companies (VVĮ and SVĮ). However, the Vilnius municipality decided that it is not yet time for employees to join the boards.
From October 29, the boards of the companies owned by the capital city municipality – “ID Vilnius,” “Vilniaus vystymo kompanija,” “Miesto gijos,” “Grinda,” and “Vilniaus viešasis transportas” – were dismissed. Exactly one working day was left to start the new boards, for which the requirement to have an employee representative among them would not apply for another four years.
Diplomatically speaking, the municipality acted cleverly. A legal but brazen circumvention of an unwanted law was organized. It would have brought the municipality the desired result – several additional years without employee representatives.
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And there would have been one more additional side effect. The terms of four out of five (all except “ID Vilnius”) dismissed boards end in 2027, just a few months after the municipal councils and mayoral elections. Even if the conservatives do not win these elections in the capital, the members of the boards appointed by the current administration would remain working in the municipal companies for almost the entire next term.
Nevertheless, the circumvention of the law, even if legal, has its cost. First, it undermines trust in the municipality as a shareholder: we dismiss the board whenever we want.
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