Expanded country report: financial participation of employees in Lithuania

ENAfter Lithuania regained independence, employee ownership was used to facilitate privatisation. At the initial stage of privatisation 1991-1995, employee-buy-outs at a discount combined with the extensive use of vouchers by employees and leasing with the option to buy led to a high percentage of employee majority ownership. After most of the preferential rights of employees were abolished in 1995, employee ownership is on the decline changing partly to management and to outsider ownership. Participation of employees in decision making in Lithuanian companies has its roots in the trade union movement as well as in the practice of managing companies under Soviet rule. At present, in Lithuania, financial participation is rather viewed as an incentive for managerial employee motivation, initiated by managers and current owners of companies. [Extract, p. 191].