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 Coordinating the Network of EU Agencies 2015 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) Coordinating the Network of EU Agencies 2015 Content Demographic and employment ageing Pension reforms and quality of work Type of measures and involvement of social partners by MS Conclusions Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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? Coordinating the Network of EU Agencies 2015 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” Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 SP and Gov. specific Initiatives EDR2020 5-8 initiatives reported 1-2 initiatives reported 1-2 + no comprehensive Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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?) Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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) Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 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” Coordinating the Network of EU Agencies 2015 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 Coordinating the Network of EU Agencies 2015 Thank you ova@eurofound.europa.eu www.eurofound.europa.eu Coordinating the Network of EU Agencies 2015