•30-40-50 Plus – Healthy Work in an Ageing Europe

Wolfgang Schroeder

5th European Conference of the European Network for WorkplaceHealth Promotion

Actors Instrumentsgovernment • law

• networks/alliances• research/public relations

organisations, unions

• collective bargaining• public relations• networks

companies • workplace conditions

Labourmarket participation

Employment participation of older workers • Men (2005) Women (2005)

• 55-60 years: 70 % 55-60 years: 52 %

• 60-65 years: 33 % 60-65 years: 17 % (Trend.: Increase on the basic of part time and lower paid

jobs)

• Lewel of qualification is most important for the time people leave the workplace

Employmentquote (55-64 J.) below EU-average• 42 % ( 2004): Men: 49 % – Women: 32 %

Labourmarket situation

Facts and figures

Trends:

Average age of the workforce increase

(2002-2004)

Average age increase by the size of

the enterprise (10 bis 499)

But: Average age in big plants (500+)

lower as in medium and small plants

(50-499)

36

37

38

39

40

41

42

36

37

38

39

40

41

42

Ostdeutschland

Westdeutschland

2002 2003 2004

1 - 9 10 - 19 20 - 49 50 - 499 500 u. mehr Gesamt

„What do we know about the age structure of the workforce?“(Average age of the workforce in

comparision to the enterprisesize

2002 – 2004)

Age and the social security systems in Germany

Labour market

Pensions

Health

Demographic change

Labour market

Government: law and actions I

Employers are exempted from unemployment assurance contributions

when they hire unemployed aged 55+ (SGB III § 421k)

Fee subvention and an additional pension insurance contribution

for unemployed persons aged 50+ who

• have a claim to unemployment benefit for at least 180 days and

• accept a lower-paid job (SGB II §421j)

Integration subsidies for elders:

employers who hire unemployed persons aged 50+ can claim 1.800-4.200 € for six

months (SGB II §421f)

Government: law and actions IIFinancial promotion of further education

for employees aged 50+ in companies with less than 100 employees

during the training the employee does not have to work but is paid by the employer

not only for the current job: qualifications generally needed at the labour market

Temporary jobs for elders (§ 14 Abs. 3 TzBfG)

employees aged 52+ can be hired temporarily without an actual reason

the limitation can be renewed again and again

Labour market

Regulations by the social partners I:

Older employees’ protectionExample: metal industry, Collective framework agreement for South-West-Germany

(2004)

• employment protection:employees aged 53-64 working for the company for at least 3 years can only be

dismissed for serious misconduct

• income protection:employees aged 54+ working for the company for at least 1 year have a claim to

an old-age-specific minimum salary

Labour market

Regulations by the social partners II:

Older employees’ further educationExample: metal industry, „Qualifizierung“ (2006): All employees:

• right to an annual consultation with their employer where both decide whether there is a need for further qualification. If yes, a measure is agreed. The costs are met by the employer, the salary continues.

Older employees:

• agency founded by the social partners develops trainings especially for elders, and tries best practice cases

Labour market

Further education for older workers - a survey

12 12

63

37

64

24

0

10

20

30

40

50

60

70

"There is a highneed of furtherqualification for

elders (>50 years)"

"Our companies’further qualification

offers for elders arenot satisfactory"

"Our companies’further qualification

offers arequalitatively good"

pe

r c

en

t

staff executives

works councils

Survey: Further education

Participation in further education differentiated by age

1979 1982 1985 1988 1991 1994 1997 2000 2003

16

2325

27

3331 29

9

15

14

20

24

29

36 36

31

4 46

811

14

2018

17

0

5

10

15

20

25

30

35

4019 - 34 Years 35 - 49 Years 5050- 64 Years

Workplace policy for older workers: Project „good work“

shaping the workplace: avoid imbalance specialisation and support of flexible demand

Health prevention

Permanent update on the qualifications

Share of indirect work

Extend of executive work

Job rotation

Execute

execute

provide

control

Organize

execute

Anforderungswechsel durch Job Rotation

Job enrichment

Job enlargement

Pension Policy

Exit age from the labour force

Reduction of the pension level

Previous:Previous: Early retirement (1980s/90s)• Employers release workers they receive unemployment benefit and the

employer pays the difference between wage and social benefit level depends on social compensation plan in each company

Present:Present: Age part time work (since 1996, limited till 2009)• The employee (at least 55) gets at least 70% of his former wage, works fulltime in

the first half and not at all in the second half

• In the second half the employee should be replaced by a young employee

Paradigm shift:Paradigm shift:• Early retirement is stopped to disburden the social security system, in the future

employees will have to work longer

• The unemployment benefit duration is shortened and its level is partly cut

• From 2006 on retirement after umemployment or age part-time work won‘t be possible until the age of 63 (today: 60)

Pension Policy: Retirement age

Goal: contribution to the pension system should be stable

Reduction of the valed years for pensiontimes of education after the age of 17 do not count any longer

Sustainability-factor: Relation pensioners/paying workers determines the pension level Gross pension level is now 48,3% in 2030 it will be <40%

Pension Policy: Level reduction

Public pension is not able to assure the living standard any longer

It is necessary to strengthen the second (company pension) an third (private) column

Pension Policy: Conclusion

23,422,0

21,721,321,121,0

20,620,4

20,2

7,16,16,0

4,24,1

3,53,23,1

1,5

0 5 10 15 20 25

Reinigungsberufe

Metallverbinder

Schmiede

Textilhersteller

Metallerzeuger, Walzer

Rechnungskaufleute, DV-Fachleute

Abgeordnete, Funktionäre

Unternehmer

Arzte, Apotheker

Chemiker, Physiker, Mathematiker

Disability in different occupations, 2003

Number of disability days per occupation

Ingenieure

Geistes- und naturwiss. Berufe

Rechtswahrer

Seelsorger

Metalloberflächenbearbeiter

Metallverformer, spanlos

Forst-, Jagdberufe

Former, Formengießer

Health Policy

A prevention law is scheduled, company based /setting approach

National forum for prevention und health advancement (Ministry of Health) networking in prevention between the actors in the social systems

Health insurances are requiered by law to advance their spendings in prevention (about 2,50 € per capita a year assured, SGB X, since 2001)

Demographic change

The societal actors‘ positions

Controversial positions

„We as socialdemocrats overslept the threatening aging of our society in the past. Demography makes the rebuilding of our social systems necessary.“

(Franz Müntefering, SPD chairman)

Behind the „natural“ demographic problem the question of distribution is hidden. Who wants to mask this, talks a lot about demography, demography and demography again“

(Brochure of Verdi)

Demographic change

“Demographic Change“The German parliament‘s

Enquete-Commission

Period of time: 1992 – 2002

All parties and a lot of scientists were involved

Recommendations of the commission: (inside of a common strategy)• Advance of employment und cutback of unemployment

• Improvement of the entrance chances of young people

• Advance of the employment chance of elder people

• Improvement of education, apprenticeship life long learning

• Equalisation of women in work

• Improvement of combatibility of work, child care und care

• Improvement of integration of immigrants in education und work

Unions

Thesis: Demographic Change is shapeable

Strategies to form the change:• Fight against unemployment lasting discharge of social systems

• Flexibilisation of labour time (life labour time)

• Change of wellfarte state structures

• Advance of the offer of part-time work

• Collective bargaining: protection and improvement of qualification especially for elder workers

• configuration of age-based working conditions

• Diversity-approach: a variety of the crew has a lot of positive aspects

Demographic change