Role of governments and
social partners in keeping older
workers in the labour market
(2013)
Oscar Vargas Llave
Working Conditions and Industrial Relations
Eurofound
National Forum Trade Unions – Malta, 14 April 2015
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The project
Context: Demographic change
Aim: Role of national policies (governments) and social partners initiatives to keep
older workers in the labour market at national or sectoral level.
• Comparative Analytical
Report (Mapping)
• Case studies (Explaining)
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Content
Demographic and employment ageing
Pension reforms and quality of work
Type of measures and involvement of social partners by
MS
Conclusions
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Employment rates 50 – 64
Low employment rate 50-64 in Malta
80.0
70.0
60.0
50.0
40.0
30.0
20.0
2003
10.0
2013
0.0
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Average years of working life 2003-2013
Duration of working life in Malta below the EU28
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
2003
5.0
2013
0.0
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No willing or be able to work at 60
70
60
50
40
%
EU27
30
20
10
0
IE
NL
SE
DK
UK
FI
MT
DE
LV
CY
EE
EU
RO
ES
CZ
BE
BG
LT
IT
AT
SK
PL
FR
LU
EL
HU
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PT
SI
Percentage of workers in high strain jobs (high intensity and low
autonomy) (EWCS2010)
45
40
35
30
25
20
15
10
5
0
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Old age economic
dependency ratio 2010
EUROPE 27
% +65 / employment
2010 = 40%
Old age economic
dependency ratio
2010
CY
25
BE
26
IE
27
SK
29
LU
31
NL
31
PL
31
CZ
32
RO
32
SI
34
DK
35
UK
35
AT
37
PT
37
SE
37
EE
38
FI
38
LT
39
MT
39
LV
40
FR
41
ES
42
BG
42
HU
43
DE
44
EL
47
IT
53
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Old age economic
dependency ratio
2010 - 2020
EUROPE 27
% +65 / employment
2010 = 40%
2020 = 46%
2020Country
2020 2010
CY
31
IE
35
NO
35
LU
36
SK
38
NL
40
RO
40
UK
40
AT
41
PL
41
DK
42
EE
42
LT
42
LV
42
PT
42
SE
42
CZ
43
SI
43
ES
44
BE
47
DE
47
BG
48
FI
50
FR
50
HU
50
EL
51
MT
52
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IT
56
6
8
6
5
9
9
8
5
4
10
7
4
3
2
5
5
11
9
2
5
3
6
12
9
7
4
13
3
Old age economic
dependency ratio 2060
EUROPE 27
2010 = 40%
2020 = 46%
2060 = 74%
% EDR
88-109
76-87
70-75
63-69
55-62
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Role of social Governments and
Social Partners
• National
policy focus more on pension reforms than in keeping older workers
through improvements of quality of work
• It has not been high in the Agenda of social partners in several MS (Differences
between countries), but importance is growing
•Both, employers and trade unions agree on the importance of improving quality of
work but with different emphasis
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Pension reforms as measure to keep older
workers in the labour market
• Changes
in the pension system :
• raising statutory pension age (e.g. linking to life expectancy)
• lowering incentives for early retirement / incentives for continuing working
• restrictions with regard to unemployment benefit
In general main players are governments
• Are these measures sufficient or are they other aspects which
contribute to keep older workers in the labour market?
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Workers leaving early labour
market
• Legal and financial possibility of early retirement
• Health incapacity to perform the job
• Inadequate skills and low education
• Job insecurity
• Working time
• Psychological aspects: motivation, job satisfaction, “early
retirement culture”
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Type of measures to keep older
workers in the labour market - policies
Quality of work (linked to higher labour market participation) – Role of social
partners
Employment and skills
Health and work
environment
Working time
Comprehensive Programmes
or National Strategies
Attitudes and cultural
values
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SP and Gov. specific Initiatives
EDR2020
5-8 initiatives reported
1-2 initiatives reported
1-2 + no comprehensive
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Employment and skills
• Huge challenge (EWCS and LFS)
•In most countries there are policies supporting the return to work of older workers
(rather than retention – in EU15) – e.g. Employment & in-work training (LV)
•Training initiatives are widespread, but few with specific focus on older workers
(part of general vulnerable groups)
•Stronger role of governments
•In general positive impact on access to employment
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Health and work environment
• EWCS show the importance of working conditions for older workers’ health
•Initiatives have been put in place: more work ability, company bargaining
(Northen Europe) – e.g. Athela Group on workability (FI)
• Individual risk assessment focusing of special characteristics of older workers not
widespread but there are examples (ES, DK, BE, NO, FI, SE, NL)
•Very few examples of initiatives addressing the working conditions of older
workers in particular sectors (strenuous jobs problem)
•Social partners and Social Dialogue role (FI case study)
• Limited number of initiatives given the challenge
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Working time
• Flexible working time arrangements: part time schemes for older employees or
partial retirement arrangements
• More widespread in EU-15 countries with already a relatively important number
of older workers – e.g. Part time for older workers (AT)
• Collective bargaining plays a role (e.g. BE, DK, FI, NL, DE)
• Indication of increase job satisfaction (Do they work longer?)
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Changing attitudes
• Probably most important barrier: employers and employees attitudes – towards
cultural change
• Changes have been observed in some countries (e.g. FR, DE)
• Measures normally included within comprehensive programmes with social
parnters involvement (Northen Europe) / General awareness-raising campaigns
• Where properly implemented positive results / Anti-discrimination policy plays a
role
• In general an area under-developed
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Comprehensive programmes /
National Strategies
•In many countries comprehensive strategies have been developed, covering
extension of working life through various quality of work policy areas (some times
within the pension system reform)
•In some of them in the form of tripartite agreements or in consultation with
social partners
• In few there are legislative provision (FR and BE)
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Social Partners involvement
EDR 2020
National comprehensive (some
consultation)
National ComprehensiveTripartite or collective bargaining
Comprehensive
Sectoral Social Partners
Other Social Partners (specific
working conditions area)
involvement collective bargaining
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Europe snapshot
Demographic/
employment
General Quality of
work 50+
Gov. / S.P Initiatives
quality of work older
workers
IR
Group A
Scandinavian (e.g.
DK)
Present and mid term
challenges
Long term future less
significant challenges
than EU 27
Heterogeneity in Health
High quality of work
- Lon-standig policies
- Social partners
involvement
- Tripartite/Bipartite
arrangements
Corporate – Social
partnership
Group B
Central European
(e.g. DE)
Current demographic
challenges (some future
ageing pressure)
EU average Health
Medium quality of work
(close EU average)
- National or sectoral
comprehensive
policies
- Social partners role
Corporate – Social
partnership
Conflict oriented
Group C
Some South (e.g.
GR) and Some
Central Eastern
Europe (e.g. RO)
Current ( some South
Europe) or long term
future strong ageing
(Central Eastern)
Heterogeneity in Health
Poorer than EU average
quality of work
- Few initiatives and lack
(or very new) of
comprehensive
programme
– Small Role of S.P
Post-socialist liberal
Conflict oriented
Group D
Heterogeneous
Relative smaller
challenge (UK, IE)
Some challenge (ES)
Strong future long term
challenge (PL, MT)
Heterogeneity in Health
Higher than EU quality of
work (UK, IE)
Close to EU average
(ES, MT)
Poorer than EU average
(PL)
- In general some
involvement of SP but
not strong role
Pluralistic
Conflict oriented
Post – socialist liberal
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Malta in relation to EU averages
Demographic/
employment
Low participation in
employment of older
workers
Increasing
demographic/employme
nt challenge
High number of healthy
years
General Quality of
work 50+
Gov. / S.P Initiatives
quality of work older
workers
Relative average quality
of work in the EU context
Some initiatives, mainly
lead by the government,
and not tackling
specifically quality of
work of older workers
Relative sustainable
work – above EU
average
Relative average quality
of work in the EU context
Job quality:
- Working Time:
Small share of workers
working part time
Standard working time
but not much influence
Slightly above average
working hours
- Prospect
EU average in terms of
job security and
prospects
- Intrinsic
Small share of workers
with high job strain
IR
Pluralistic / company
level
Low retirement age –
Progressive increase
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Case studies
Case 7 “Collective
agreement on working life
and demography in the
chemical industry”
Case 3 “The tripartite
Ahtela-group /
‘maintenance of work
ability’”
Case 2 “In-work training
for keeping older
workers in employment”
Case 6 “Ervaringsfonds”
Case 4 “'come back'
employment subsidy”
Case 5 “Part-time work for
older workers”
Case 1 “compulsory
company bargaining on
employment of older
workers”
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Conclusions
Assessment of measures by governments and social partners
•National pension reforms might have played a role to keep older workers in the
labour market, but very likely will not be sufficient
•if the projections are correct, limited effort on quality of work initiatives (e.g.
sectoral level and for some aspects)
•Need for more targeted policies and evaluation of initiatives (not always goals are
achieved)
Ageing challenge and social partners role
•Heterogeneity in challenge, policies and social partners role
• Growing awareness among social partners – their involvement facilitates raising
awareness implementation of “demographic” (including quality of work) policies at
company level
•Difficulties in times of crisis (relevance in SD and budgetary aspects)
• SP role can be very important in keeping older workers in the LM (quality of
work)
• Diversity
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Thank you
ova@eurofound.europa.eu
www.eurofound.europa.eu
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