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Jie neleidžia nutilti gerai muzikai - Business and Exhibitions

Jie neleidžia nutilti gerai muzikai - Business and Exhibitions

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BUSINESS&EXHIBITIONS Lithuanian Economic Review BUSINESS&PERSONALITY<br />

What Kind of Mentality Does<br />

State <strong>and</strong> <strong>Business</strong> Need?<br />

By Rimantas Šlajus<br />

22<br />

Before starting my work in Legetecha I had<br />

nothing to do with the trains, except for the<br />

trips to Moscow in the Soviet times, said the general<br />

manager of the company, Antanas Kovas, remembering<br />

the comfortless, tiring trips of the time. UAB VAE<br />

Legetecha is a modern Lithuanian-Austrian company,<br />

producing <strong>and</strong> supplying railway-related equipment,<br />

such as turnouts, switch blades, frogs, <strong>and</strong> insulated<br />

rail joints, for home <strong>and</strong> foreign markets, <strong>and</strong> providing<br />

for their full service. Thus 15 years ago, when the<br />

high VAR AG leaders came to Lithuania to establish<br />

a company, this was definitely not the criteria for<br />

choosing an engineer, the graduate of Kaunas Institute<br />

of Polytechnics Antanas Kovas as a company manager.<br />

Most probably it was the organizational skills <strong>and</strong><br />

scientific practice, though – Antanas Kovas had had<br />

the experience of being a manager in a company of<br />

technical character, had had quite a few scientific<br />

articles written <strong>and</strong> discoveries made. It could only be<br />

guessed that the representatives of the Alps region, who<br />

feel strong inclination towards communication, order<br />

<strong>and</strong> extraordinary decisions, had been looking for a<br />

person who knew more than just technology. Together<br />

with Antanas Kovas we were exploring the production<br />

workshops, where the manager was trying to explain<br />

us the subtlest elements of the production process, not<br />

forgetting to have a word with his colleagues.<br />

Focused people, knowing exactly what they are<br />

worth, kept a respectful distance from, yet did not seem<br />

to be oppressed by their superior. It seemed that the<br />

manager was in favour of such western-like working<br />

culture. Even though he assured us that being liked<br />

by the employees was not his first goal, <strong>and</strong> that they<br />

could curse him by all means just around the corner if<br />

they wanted to. Most probably there would be no such<br />

hotheads though, because it was the manager himself<br />

who had chosen them of a number of other c<strong>and</strong>idates.<br />

And yet, dissension is quite inevitable in such a difficult<br />

production; especially when a person has just got on<br />

track. This is the natural processes of self-regulation.<br />

However, Antanas Kovas has a broader view <strong>and</strong> now,<br />

at the presence of the recession, he would like the people<br />

in the whole country to reassess their value system <strong>and</strong><br />

harmonize their relationship with the environment<br />

<strong>and</strong> the government. Especially now, when the voice<br />

of each person, unsatisfied about the taxes, health<br />

reform, social care, or the salaries in Lithuania, grows<br />

stronger <strong>and</strong> joins into a mighty chorus, including the<br />

businessmen <strong>and</strong> the pensioners, such odd Antanas<br />

Kovas’ world outlook is at its least perplexing; having<br />

in mind that single voice sounds louder when there are<br />

more voices to sing.<br />

”Recession is a consistent expression of a<br />

developing economics, <strong>and</strong> I am worried that it is not<br />

deep enough. The main function of the recession is<br />

to clean state economy from the clots. Recession is a<br />

strong windstorm, breaking old dried out tree branches.<br />

On my way to work this morning, I heard some<br />

drivers complaining on the radio about not getting 3-4<br />

thous<strong>and</strong>s of take-home pay, like they did before”.<br />

”It’s a pity that the people haven’t learnt a lesson.<br />

Don’t those drivers underst<strong>and</strong> that such amount of<br />

money doesn’t even belong to them? However, they<br />

have the same perverse economic concept in the<br />

West. How much money have German government<br />

allocated to the companies, the managers of which have<br />

emaciated them <strong>and</strong> forced to go bankrupt?”<br />

”When will the recession end?”, Antanas Kovas<br />

asks the hopeful question, which the influential<br />

economists are being asked lately. “We will never get<br />

back to the position we were two or three years ago;<br />

when banks were grabbing every freshly-made postgraduate,<br />

poking in mortgages for the apartment or<br />

even a house, for cars, furniture, travelling...”<br />

“Our company was surely influenced by the<br />

recession too. The circulation of 54 millions has more<br />

than halved, the sales became almost three times<br />

lower. And yet, with the help of the shifty stockholder<br />

<strong>and</strong> founder of the company, our production is being<br />

requested by Saudi Arabia, <strong>and</strong> India, <strong>and</strong> Germany.<br />

However, the number of employees had to go down;<br />

by ten the first time, by ten more the second time,<br />

while at the third time I gathered all my employees <strong>and</strong><br />

offered them an alternative – either we continue firing<br />

the people, or we keep working <strong>and</strong> earning as much as<br />

there is work?”<br />

“The people surely agreed to the suggestion. Then<br />

why are we making idiotic labour laws, forcing us to<br />

pay for eight hours of each five days of the working<br />

week? What if there is no work to be done? A cafe<br />

owner in France cannot work 12 hours a day with his<br />

daughter. Why are people forced to lie? Last summer a<br />

man was looking after our heat economy. It was more<br />

than enough for him to come there once a month. It<br />

seems that settling things down with the person should<br />

be enough. But what if State Tax Inspectorate comes?<br />

Why am I forced to fill-in the non-existent information<br />

into the roll? Why am I forced to feel guilt? Pretending<br />

that the Inspectorate represents the labour interests.<br />

There is certainly no fun for the employer, when he or<br />

she has to fire people or cut their salaries. Moreover, if<br />

the employer thinks of the future of the company, he or<br />

she is interested in saving the people right where they are.<br />

However, no one pays for nothing; even though it was<br />

so before the recession. One of my former employees<br />

once said to me upon leaving the job: “Manager, one<br />

even has to work to get money at your place”.<br />

“This is where our mentality<br />

comes from. In case of any trouble<br />

it seems that either the head of the<br />

company or at least the government<br />

has to empty their pockets <strong>and</strong> attend<br />

to each <strong>and</strong> every one. A young lady<br />

has come back to Lithuania from<br />

abroad to work with us. One of the<br />

first questions she asked was where<br />

she could get ensured. People are<br />

forced to get ensured here <strong>and</strong> yet,<br />

they avoid that at all costs. What<br />

an absurd! – the person has to be<br />

responsible for him or herself. Indeed,<br />

this is exactly where the problem<br />

of the determination of the optimal<br />

relation between the society <strong>and</strong> the individual lies.”<br />

“Why are Western people not aware of what a<br />

bribe is? Because a doctor receives the money straight<br />

into his or her h<strong>and</strong>s <strong>and</strong> pays health insurance on his or<br />

her own. Thus the patient doesn’t have to consider why<br />

he or she is forced to pay again for something that as<br />

paid for already.”<br />

“No one even bothers about the actual salaries the<br />

people get here. The fact that the employers pay over<br />

30 additional percent off the employees salary to the<br />

Social Insurance, is being completely forgotten. What if<br />

the same employee was to make these social insurance<br />

payments on his or her own? The payer would require<br />

the doctor to provide an adequate medical service then.<br />

There’s nothing much like this in Europe, where the<br />

socialism prevails. Western Europe has overtaken the<br />

worst legislation <strong>and</strong> its provisions from the socialist

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