Changes will affect “ID Vilnius”, “Vilnius Development Company”, “City Lines” (formerly Vilnius Heat Networks), “Grinda”, “Vilnius Public Transport” (VVT).
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The first to report on such a municipal decision was the LRT portal.
As stated on the social network “Facebook” by the director of the municipal administration Adomas Bužinskas, the voice of employees must be and is heard in the Vilnius city companies group.
“I have had experience working on boards, leading them, and completing courses, so I feel I can share my experience. Employee engagement is one of the complex topics, often included in the annual tasks of the manager in the Vilnius companies group. To increase this indicator, comprehensive measures need to be applied, not bluntly saying that we will appoint an employee representative and all problems will be solved,” he commented.
According to A. Bužinskas, amendments to the Labor Code will come into effect on November 1, obliging newly formed company boards to include an employee representative.
“We opposed such a decision from the very beginning and provided our arguments, but we were not heard. Until now, it is unclear who and on what principles will be able to represent employees at all.
That is why we decided to re-form the boards of LLCs and JSCs owned by Vilnius city municipality – so they can work for the entire four-year term according to the currently valid laws,” he said.
Why does the municipality think such a change will not work?
“The board is not a representation of different interest groups. Its members must act in the interests of the entire company, objectively supervise the management’s work, and have the competencies necessary for the company – from finance and strategy to law, risk management, and specific sector knowledge. The goal of the board is a successful company. And this is unimaginable when employees are unhappy, looking for a way to escape, and do not feel valued. The board must be formed based on competencies, not other grounds. The formula works very simply: professional board = successful company = satisfied employees,” wrote A. Bužinskas.
According to him, the new regulation leaves practical uncertainties: according to what competencies and independence criteria employee or trade union representatives would be selected, how possible conflicts of interest would be managed.
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“When deciding on remuneration policy, organizational structure, or other issues directly affecting employees, recusals could complicate the board’s work.
I repeat – we successfully hear employees in other ways. Employee well-being and engagement are discussed both in the shareholder’s letter of expectations and set as an annual task for practically all managers of the Vilnius city companies group. Companies conduct engagement surveys, the results of which oblige us to look for ways to improve areas where we need to improve every year,” said A. Bužinskas.
He emphasized that the voice of employees can reach both managers and boards – through traditional, time-tested methods – employee councils, trade unions, regular consultations, and direct dialogue.
“A permanent place in a limited composition board is definitely not a way to achieve this and, without the previously mentioned circumstances, simply will not work.
I am proud of the professional people we manage to attract to participate in competitions and the level of specialists in their fields working on the boards of the Vilnius city companies group. And this is the best assessment and example that the market values the transparency and working principles of this system,” said A. Bužinskas.
Meanwhile, the Minister of Social Security and Labour, Inga Ruginienė, reacting to such a municipal decision, thinks it is deplorable and cynical. In her opinion, this aims to ensure that employee representatives will not be on boards for another four years.
15min interviewees also expressed criticism.
