Note from zemeunvalsts.lv

“Rīgas Meži” employees' letter was written even before the appointment of the Riga City Council municipal company's Board last week. We strongly hope that the newly appointed “Rīgas Meži” Board will also pay attention to what is happening and what has happened at the company. Since March of this year, industry representatives have been watching (or attempting to watch) what is going on at the company, trying to understand the public, the performative, the unfolding, and the actual. It is our earnest hope that as the new Board begins its work on 1 September, we will quickly gain clarity on what has happened at the company and why. It should be added, as it is particularly important in these very days – in August 1991, there was a feeling that today, 30 years later, had to transform into a conviction: the time for phrases and slogans inconsistent with reality has passed. Is that the case?


To the Ombudsman of the Republic of Latvia
To the State Labour Inspectorate
To the Members of the Riga City Council
12 August 2021

We, the undersigned former and current employees of SIA “Rīgas Meži”, wish to confirm with this letter that 38 company employees did not terminate their employment voluntarily; rather, this happened as a result of bullying by the company’s management, which was implemented against each of us. A mutual agreement was concluded with twenty-five of us, twelve left of their own accord, and one was dismissed for “loss of trust”.

In April of this year, we sent an unsigned letter to the media and responsible institutions (unsigned – because we were afraid of losing our jobs), in which we expressed our confusion and indignation at the fact that after the sudden removal of the company's previous board, the appointed interim board – Acting Chair of the Board Anita Skudra and interim Board Member Līvija Stukovenko – were carrying out actions against employees that insulted human dignity with the aim of getting rid of specific employees (because they had worked under the previous Riga City Council leadership) in order to install people close to them in those positions. Over the course of four months, 38 employees have left the Riga municipal company SIA “Rīgas Meži”. In most cases, the formal reason is “mutual agreement” and “resignation of one's own will”. Legally, this matter is in order, and the board members “can wash their hands of it”, yet the actual situation is different. We were all forced to act this way – to sign the agreement, because we received threats that otherwise we would be fired. Of course, it was in our interests to receive compensation for the years we worked, as we did not know how long we would have to use unemployment status and how long it would take to find a new job. Likewise, none of us had the funds to go to court and be out of work for a long time. The agreement was used as a tool, as there was no reason for dismissal. We all wanted to continue working at the company that we had jointly built and developed from an agency – “Rīgas Mežu aģentūra”, where 100 people worked, into a multi-sector company with more than 400 employees, which pays ~4 million euros in taxes per year. Until now, SIA “Rīgas Meži” had minimal staff turnover, which means that the working environment was well-organised and there was a positive microclimate in the company focused on achieving work objectives.

By concluding these “mutual agreements”, according to our calculations, approximately 100,000.00 euros have been paid out in compensation. This means that funds belonging to the residents of Riga have been spent inefficiently, because the board's whim to replace employees has been fulfilled. Such expenses do not end there, as integrating every new employee into the company also involves costs. It should be mentioned that newly hired employees are being set significantly higher salaries than those who have worked for ten years or more. One of the manifestations of bullying was the removal of bonuses for certain department heads, even though their workload remained unchanged.

We consider that we have been discriminated against on the basis of “having worked for the previous power”, which the board members have not been shy about declaring, while also “labelling us”: “wasters”, “mismanagers”, “scammers”, “fictitious employees”, etc. Expressions of psychological terror that were carried out against us included, for example: being given urgent and meaningless tasks with unrealistic deadlines; unfounded insults and statements that we were not professionals, that we do not work with modern methods, etc.; being ignored, for example, by regular tasking of employees while bypassing the department head; reports received after working hours and at night; a dismissive and hostile attitude; verbal humiliation, insulting and harassment; conditions were created so that one could not work normally because, instead of fulfilling our job duties, we very often had to perform incomprehensible and illogical actions. These are just a few examples of the psychological terror implemented by the board so that we would be brought to a situation where we would agree to sign a mutual agreement. The Head of HR, Marita Krūmiņa, expressed her determination to the board members not to sign an agreement voluntarily; she was dismissed for “loss of trust”. We assume that we would have been dismissed similarly if we had not done so. We were motivated to sign the agreement by the prospect of being “fired in any case”.

We believe that the company’s board is currently made up of accidental people who have no idea what the forestry sector means for the Latvian and Riga economy; these individuals do not know or understand any of the company’s fields of operation. However, that was no obstacle for them to fire department heads who were professionals in their field with long-term and unique experience. The time Anita Skudra and Līvija Stukovenko have spent at the company confirms that they lack the leadership abilities and skills to manage people. They are able to achieve the results they want by wickedly using the power they have acquired – firing employees and thereby intimidating those who remain. Both board members hold these positions without having participated in a competition. Līvija Stukovenko received her position as a reward for submitting a “whistleblower report” to the Riga City Council leadership, and this can be considered trading in influence.

Unfortunately, the Riga City Council leadership has not hired a third board member in six months, who could potentially be a factor in reducing this kind of retaliation against long-term employees of the company.

Actions outside the regulation of professional relationships were directed at us every day. The scenario in all cases was quite similar – bullying over several months, followed by an invitation to a meeting where statements insulting human honour and dignity were made, followed by an offer to sign an already prepared agreement. We believe that all of this has had a devastating impact on our work performance, our health, and our personalities. Such psychological terror was not a series of isolated incidents, but a system over several months. For several months, we were kept in a state of helplessness and vulnerability because the board used its legitimate power with the intent to humiliate and offend. The emotional security of the employees is still being undermined today – they are being kept in the dark about the possibilities of continuing their work and, consequently, their future financial situation. Uncertainty, fear of the future, fatigue – psychological terror can only end in one way: by leaving the job. Concerns about our material situation and such behaviour were the reasons why we voluntarily signed the agreements.

If such behaviour is acceptable and permissible in municipalities, it should be established by law that when power in a municipality changes, all employees in its companies – structural units, municipal companies, agencies, etc. – are automatically fired and others are hired. Then municipal employees would know the rules of the game and would count on the fact that when power changes, they will lose their jobs and will have to solve problematic issues – how to provide for their families, how to pay off credit obligations, etc. Knowing that the system in public administration is like this, many of us would not have taken a job at a municipal company.

The company’s interim board had announced competitions for the positions from which we were fired, in which some of us also participated. Unfortunately, no one was hired, even though they best met the established requirements and criteria. This means that these competitions were a formality with an already known result.

The Riga City Council leadership very often emphasises that we must work in accordance with OECD principles, but what was and is being done at SIA “Rīgas Meži” proves the opposite. It is shocking to watch how, in our opinion, within a few months, a “destruction team” not only destroys a company, but by violating all universal human norms and principles of good governance, mocks industry specialists and fires them from their jobs.

Currently, the educational project “Green Class” is without management, leading employees have left the “Norupe” sawmill, and it will be very easy to sell it, which is possibly one of the main goals.

It is very, very sad and pathetic that the Mayor of Riga is openly lying. In March of this year, addressing the employees of SIA “Rīgas Meži”, he said: (..) “I want “Rīgas Meži” to have a board. This is also required by law. I want this board to be the one that implements the strategic goal set by the council, so that politicians interfere as little as possible in the work of municipal companies. (..) Further, all of this is controlled by the board, which the Riga forests have not had until now. Such a board must be created. (..) Such a board will be created. The next step – I want this board to select a new management board in an open, fair competition. None of those who are currently on the board will be given any advantages. If they wish to be on the new board, they will have to participate in the competition and win in a fair fight. I will be “picky” to ensure the process takes place openly and fairly, so that no one has any doubts that the new board is a board of professionals, just like the board of directors. I believe this process must conclude within six months at the latest. Until then, my only request to you is to be understanding in this situation, to allow this process to be carried out, to get clarity on the issues. I can confirm that there will be no sudden turns in these six months. (...) These are changes in the company's management, but these are by no means changes in this SIA that could affect your daily work. I expect the same from the interim board, to ensure work at the level that has been provided until now. Again, I say that it has been a very high level. For which I say a big thank you to each of you.”

As we can see, the opposite is happening in real life – the process of selecting a management board has not yet begun, but the interim board has disposed of 38 employees by 10.08.2021 and is continuing the process. The interim board, when inviting three employees of the company, whom the collective had delegated to sign a “collective agreement”, but who had no other powers, informed them that a company reorganisation would take place in August. All of this is being done by an INTERIM board! What will happen when the real board is appointed and the company has a council? Most likely, they will want to implement their own changes. How many more change processes will the employees of “Rīgas Meži” be subjected to?

In our April letter, we asked the deputies of the Riga City Council, who are elected representatives, and the mass media to follow what is happening at the company, but unfortunately the response has been minimal. We do not expect it now either. However, as citizens of Latvia, and many of us are also Riga residents, we believe it is our duty to report such cases and not allow such a management style to spread to other companies in our country.

We believe that by using the power received by the interim board members of SIA “Rīgas Meži”, we were deprived of our right to work, manipulating and abusing labour legislation, because legally everything is already in order.
* letter published with minor, clarifying corrections