1 / 24

EFA Conference – 10 th February 2010

EFA Conference – 10 th February 2010. Sarah Veale Head Equality and Employment Rights Department. Financial Concerns. Exacerbated by economic downturn – employees “remain in work or lose home” Bolster pension provision – funds not performing as well as expected. Financial Concerns.

art
Télécharger la présentation

EFA Conference – 10 th February 2010

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. EFA Conference – 10th February 2010 Sarah Veale Head Equality and Employment Rights Department

  2. Financial Concerns • Exacerbated by economic downturn – employees “remain in work or lose home” • Bolster pension provision – funds not performing as well as expected.

  3. Financial Concerns • Impact of “career break” (maternity, paternity, etc) • Defined Contribution Pension schemes – rate determined by the date of 65th birthday

  4. Insecurity of Employment • Remaining in work after 65 often means less favourable treatment • Uncertainty about period of continual employment

  5. Insecurity of Employment • DRA substitute for good management practice • Reliance on DRA rather than using established/statutory collective or individual redundancy procedures

  6. Lack of Flexibility • Employees in some sectors struggling to stay in work • No desire to remain in low paid, undervalued work

  7. Lack of Flexibility • DRA drives out talent, lowers staff morale, drives up recruitment costs and compromises customer satisfaction • Places stress on families

  8. Right to Request • Weak provision • Procedure burdensome – no obligation on employer to assess employee capability or give reason for refusal

  9. Right to Request • Those notified under the procedure often miss out on training and promotion procedures • Can be useful tool for employers wishing to cut jobs

  10. Recent Trends • Of 2m workers classified as “economically active” the majority are over 50 • Cabinet Office research (2000) indicates 40% men and 20% women left work earlier than they had expected

  11. Recent Trends • 2008 CBI employment trends survey suggested one third employees were asking to stay on • Their 2009 survey reflects a growing desire among employers to adopt more flexible working arrangements

  12. Union Negotiating Achievements Civil Service • March 2008 new flexible retirement scheme adopted • Encourages older workers to reduce working week as prelude to retirement

  13. Civil Service • Reduction in salary income 20% but can access all or part of pension and receive Lump sum accrued to date • Take up had been significant both for these over and under 65 (several thousand)

  14. Civil Service • October 2008 Cabinet Secretary announced removal of DRA for CS employees from April 2010 (October 09 for senior civil servants)

  15. Public Sector - NHS • NHS pension scheme subject of major review • New scheme open to existing members (who transfer) and all new joiners

  16. Public Sector - NHS • Scheme provides for “career end” flexibility including • continue in work and draw down part of pension • continue to build pension rights (by paying contributions to age 75)

  17. Public Sector – NHS • Increased pensions for late retirements • Increased options, ie, reduced hours in lead-up to retirement

  18. Maritime Sector - Officers • Until recently routine “retirement” dismissal of employees ages 65 • Employers concerned about “setting a precedent” if they granted requests to stay on

  19. Maritime Sector - Officers • Union intervention in specific cases (on appeal) has been successful – tendency now for employers to strike balance between individual’s capabilities, qualifications and business consideration before applying DRA • Still some uncertainty around post-65 dismissal procedures

  20. Retail Sector • Industry attracts older workers – average 18 year old at Tescos stays 6 months; average 60 year old stays 5 years • Tesco (and USDAW) operate fully flexible retirement policies

  21. Retail Sector • Leads to fewer leavers – reduced recruitment costs – better staff morale • Retained skills leads to better customer service and satisfaction – business case

  22. Other Sectors • Finance with HBOS • Retail with Co-op • Local Government with Notts County Council

  23. TUC Position • DRA hinders employees’ ability to combine work with domestic and other responsibilities • But improving opportunities for older workers not just about removing DRA (or other contractual RAs)

  24. TUC Position • No desire to see workers remain in low paid, undervalued jobs and they should not be obliged to do so • Support replacing DRA with flexible retirement schemes including secure pension arrangements for those below and over 65

More Related