Vilnius Municipality dissolves five company boards amid labor dispute

The Vilnius City Municipality has announced the dissolution of the boards of five municipal companies: ID Vilnius, Vilnius Development Company (VVK), Miesto gijos, Grinda, and Vilnius Public Transport (VVT). These boards, which were appointed for four-year terms, are scheduled to be replaced by November 1.

The municipality stated that the changes aim to maintain a model of board formation based on competence and independence. Administration Director Adomas Bužinskas noted that while employee opinions are important, they can be heard through employee councils and trade unions rather than through permanent board seats.

The Lithuanian Confederation of Trade Unions (LPSK) has criticized the move, characterizing it as a deliberate attempt to bypass new Labor Code amendments. These amendments, passed in June, grant employees the right to participate in the boards of state and municipal companies. LPSK warned that if the government does not distance itself from this precedent, unions may be forced to consider more extreme measures, including seeking the liberalization of strike regulations.