Kaunas Hospital Faces Legal Action Over Pay Cuts for 3,000 Staff
More than 3,000 employees at the Hospital of the Lithuanian University of Health Sciences (LSMU) Kaunas Hospital are at the center of a major labor dispute that could set a significant precedent for healthcare workers’ rights in the region. The Lithuanian trade union ‘Sandrauga’ has officially filed claims with the Labor Dispute Commission, alleging that the hospital management implemented illegal salary reductions by unilaterally altering contract terms.
The dispute centers on a decision by the hospital’s director to modify the calculation of the ‘fixed’ portion of employee wages. According to the union, management effectively zeroed out a specific pay component, known as the ‘D variable,’ which had previously been a stable part of the staff’s monthly earnings. This change was reportedly made without providing prior information to the workforce or obtaining the mandatory written consent required under Lithuanian labor law.
Unilateral Salary Structure Modifications
Under the Lithuanian Labor Code, the terms of remuneration are considered an essential part of an employment contract. Any modification to these terms generally requires a mutual agreement signed by both the employer and the employee. In the case of Kaunas Hospital, the union argues that the administration bypassed this legal requirement by using internal administrative orders to override existing individual contracts.
The ‘D component’ in question is a standard element of public sector wage formulas in Lithuania, often used to reflect qualifications or specific job complexities. By setting this value to zero, the hospital administration significantly reduced the take-home pay for a wide range of staff, including nurses, laboratory specialists, and administrative personnel. The union contends that this move was not a mere administrative adjustment but a direct breach of the financial protections afforded to workers.
Retroactive Orders and Legal Compliance
One of the most contentious aspects of the dispute involves the timing of the hospital’s administrative orders. The ‘Sandrauga’ union has highlighted instances where orders were issued at the end of a month but applied retroactively to the beginning of that same month. For example, an order signed on January 30, 2026, allegedly dictated salary changes that were backdated to January 1.
Kęstutis Juknis, the chairman of the ‘Sandrauga’ union, described the situation as an administrative ‘experiment’ where orders appear to cancel each other out or exist in a vacuum. This lack of transparency has left many employees uncertain about which regulations currently govern their pay. The practice of backdating administrative decisions that negatively affect employee compensation is widely regarded as a violation of the principle of legal certainty, a cornerstone of European labor standards.
Impact on Healthcare Professionals and Support Staff
The scale of the conflict is particularly significant given the roles of those affected. The 3,000 staff members involved include the very individuals who were lauded as ‘heroes’ during the global pandemic. The union emphasizes that behind the technicalities of salary formulas are real people—nurses’ assistants, registrars, and medics—who now feel reduced to ‘lines on a spreadsheet.’
This sentiment of devaluation is a recurring theme in healthcare labor disputes across Europe. When public institutions face budgetary pressures, the ‘variable’ portions of salaries are often the first targets for cost-cutting. However, the union argues that using these variables to bypass the stability of a fixed wage undermines the financial security of the healthcare workforce, potentially leading to increased turnover and decreased morale in a sector already under strain.
Concerns Over Procedural Transparency
As the case moves to the Labor Dispute Commission (VDI), the union has also raised questions regarding the impartiality of the proceedings. ‘Sandrauga’ claims to have observed a pattern where cases involving Kaunas Hospital are repeatedly assigned to the same commission chairperson. The union suggests this lack of rotation could affect the perceived fairness of the outcomes.
The union is seeking a full reversal of the salary changes, the reinstatement of the previous pay structure, and the payment of all arrears owed to the affected staff. If the Labor Dispute Commission finds in favor of the employees, it could force a major budgetary realignment for one of Lithuania’s largest medical institutions and serve as a warning to other public sector employers against unilateral contract changes.
Source: BNS
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