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From the 50's => INTO the Future..
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Weekly Newsletter
Issue # 013 May 3rd 2005
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In This Weekly Issue
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3. Some words from Ley and Bill
4. Ask The AdMistress
5. News about Seniors and Boomers
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3. Some words from Ley and Bill
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5. News about Seniors and Boomers
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Read how in Sweden, the senior workers are integrated teams to
to do a best work in Volvo. The seniors take advantage to retire
later, and companies get savings to hire them. And the young
workers benefit from the knowledge that seniors offer them.
IN this way the integration of young and older workers become
an effective solution to countries with growing senior population.
Ley Gal and Bill Vannot
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The Mature Market
Read online
EU: Ageing and work
Increased life expectancy and reduced fertility rates in Europe
create a tension between social welfare systems and the labour
market.
According to the Commission’s European Employment Observatory
(spring 2003), the 16-29 years age group will decline by 13
million people between 1995 and 2015 in the 15 Member States
of the European Union (estimated for the EU before the
enlargement to 25 Member States on 1 May 2004). At the same
time, the number of 50-64 year olds will increase by 16 million.
This is a vital issue for the future. The EU has set the
objective of raising the employment rate of older people. In
March 2001, the European Council of Stockholm aimed at a rate
of 50% employment for workers aged 55 to 64 by 2010. (It also
sets the objective of reaching an employment rate in the EU
of 70% for the whole population of working age, and of 60% for
women.) The Barcelona European Council in March 2002 agreed on
the target of gradually increasing the average retirement age
by five years over the same period.
National social models Using the classifications drawn up by
Delteil and Redor (2003), three types of country can be
identified, taking into account male employment rates of older
workers and developments since 1995. Male employment rates
are used in their study as, historically, the career paths of
men have been more linear, while those for women tend to be
more broken and varied.
In Sweden and Denmark, traditionally, there has been a high
employment rate among older people.
Finland, the Netherlands and Spain had far lower employment
rates among this age group but improvements in this situation
mean that they can now look towards the Stockholm objective.
Germany and France have made little progress over the past seven
years. Reforms came late and were not well accepted. The labour
market was not favourable for anyone, and even less for older
workers.
Countries with a large number of older workers
Two countries - Sweden and Denmark - have a high rate of older
employees. They already largely exceed the Stockholm objective.
It is useful to understand their social context and the measures
taken concerning employment and retirement.
Sweden: the old protection system and new reforms
The official retirement age in Sweden is 65 years. As the graphs
below indicate, the percentage of people aged between 50 and 64
who are working has remained in excess of 70% since 1976. The
economic depression from 1991 to 1994 clearly shows its effect
on this age group as on other workers. However, the poor economic
situation of the period 2002-2003 did not have a large impact
on the employment of older workers, due to the particular sectors
affected. The IT and communications sectors who suffered most
from that recession, employ many young people.
Early retirement agreements for certain professional categories
(transport, mining, defence, etc) have been abolished in Sweden.
Such agreements became more common in other sectors too during
the recession in the early 1990s, when there was less work
available.
All of these incentives have now been removed though it is
possible to reach specific retirement agreements on an individual
basis. Early retirement for health reasons is common. Life
expectancy in Sweden is one of the highest in the world.
The rate of over 65 year olds is estimated to increase from 17%
of the overall population to 25% in 2030. In the same period,
women’s life expectancy will rise from 82.1 to 85.2 years, and
men’s from 77.1 to 81 years. Furthermore, the birth rate was
extremely high in the 1940s, which will mean a surge in the
numbers retiring in the coming decade. The pension system was
recently modified in an effort to avoid excessive strain on public
finances. Revolutionising the traditional collective bargaining
system, the Swedish state adopted an act in 2001, aimed at
establishing a link between contributions paid throughout a
lifetime and the level of pension payments. Each person can work
beyond the official retirement age of 65 to increase his or her
pension.
In 2003, the government published Policies on ageing for the
future . 100 steps to safety and development with an ageing
population. These guidelines focus on disparities between
men and women, between the different socio-economic categories,
and between immigrants and people born in Sweden. The stated
objective is to achieve 75% of active involvement of 50-64
years olds in the labour market by 2010, compared with 73%
in 2001. The rate was as high as 77% in the early 1990s. The
guidelines note differences in the nature of work and the need
for higher qualifications. They also point to the intensification
of work and mobility between different employers. Good quality
of work, personal development and pay conditions throughout a
career are the main conditions that encourage older workers to
want to continue to work, and that enable them to do so. Towards
the end of professional life, it is necessary to adapt functions
to people’s capacities, develop skills and propose flexible
working hours.
Case example from Sweden: Older workers at Volvo-Torslandaverken
Staffing was reduced by 60%. At the same time, car production
rates increased. In an effort to manage the staff shortage, two
departments for older workers were set up in 1994. 60 persons who
are older than 50 years or have medical difficulties are employed
here. 90% of these have strain injuries. They do not work in
cleaning, painting or other heavy tasks.
Instead they perform service tasks or preparatory work for the
assembly line.
At the outset, Volvo’s management counted on the older workers
handling 75% of commissioned production demands. Today they handle
90%. To recruit a new, younger worker costs around 100,000 SEK.
Early retirement for older workers is also costly.
Thus, retaining these workers within the senior departments
represents considerable cost savings. There is no direct competition
with the younger assembly workers who have greater physical strength.
The older, experienced workers can conserve their energies in
dealing with more specialised tasks. In the beginning, the younger
workers on the assembly line tried to find fault with the work of
the older workers.
However, this strategy was soon abandoned. The more experienced
workers clearly knew how to build a car properly. And the younger
workers could learn from them. A greater integration of ages in
the work teams creates a sense of belonging, safety and well-being.
The harmonious work situation strengthens workers’ self-esteem and
reduces sick leave.
Short breaks and varied work schedules are also beneficial, allowing
the older workers rest periods. The older workers do not have as
high a pace of work as the younger workers but their work is cost
effective. The oldest senior worker was offered early retirement on
reaching 59 years, but chose to remain at work. The management can
be pleased with the success of their initiative.
Source: European Foundation for the Improvement of Living and
Working Conditions
http://www.thematuremarket.com/
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Disclaimer:
In accordance with Title 17 U.S.C. Section 107, this
material is distributed without profit for research
and educational purposes. Senior Life Changes has no
affiliation whatsoever with the originator of this
article nor is Senior Life Changes endorsed or
sponsored by the originator
Ley Gal & Bill Vannot
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Ley Gal & Bill Vannot
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