Publications by subject - Industrial change - 2012

This report summarises available data on recent employment trends for older workers in the EU27 as well as the results of organisation case studies and overviews on developments in workplace age management undertaken by Eurofound in 2011. The first section uses Eurostat data to provide a statistical portrait of the main trends in relation to labour market participation of older workers. The second section provides pointers on how age management policy has developed at company and national level before, during and after the Great Recession.

Significant ECB interventions in December 2011 and February 2012 have helped to stabilise, at least in the short-term, Eurozone sovereign debt concerns. A fresh focus on the essentials of economic activity reveals a weakening EU economy with an increasing likelihood that the Union is already in a double-dip recession. The first issue for 2012 includes: macroeconomic trends and prospects; job creation and job losses at a glance (1/1/-31/3/2012); sectoral distribution of job losses/job gains, and top five cases; filling the 'Nokia gap' in Jucu, Romania; restructuring support measures under the spotlight; - restructuring in the pharmaceutical sector; life and work after the offshoring of a clothing factory in the Welsh valleys.

The concept of flexicurity – a strategy to enhance flexibility and security in the labour market at the same time – gained new momentum with the advent of the economic crisis. Public and policy discussions are now dealing with the question of whether flexicurity also works during times of economic crisis, or indeed, if it even can be a way out of the recession.

Flexicurity, a strategy to enhance both flexibility and security in the labour market, has been on the agenda of public and policy discussion across Europe since the 1990s. In light of the recent economic crisis the question arose whether flexicurity, which was developed in times of good economic and labour market performance, also works in ‘bad weather’, that is whether and how it is implemented in the Member States of the European Union during times of economic difficulties. Read more in the report.

Flexicurity is a strategy intended to enhance both flexibility and security in the labour market and has been on the agenda of public and policy discussions across Europe since the 1990s. In light of the recent economic crisis, the question has arisen whether flexicurity, which was developed in times of good economic and labour market performance, would also work in ‘bad weather’. This research project aims to investigate the implementation of flexicurity across the European Union by analysing a large number of public and social partner-based instruments that combine an element of flexibility and security. This research should contribute to making the somewhat ambiguous concept of flexicurity more tangible, by providing numerous examples of how flexicurity can be realised. An executive summary is available.

Since the start of the recession in 2008, European enterprises have faced a significant decrease in demand that has required the development of new strategies to survive the crisis and return to growth. This fact sheet forms part of the Eurofound resource pack 'Unleashing the potential – Flexibility in European companies'. The pack explores the flexibility strategies used at national and company level and their impact on employees.

Working time flexibility is the most widespread form of flexibility practice. Various types of working time flexibility practices are being used in European companies. This fact sheet forms part of the Eurofound resource pack 'Unleashing the potential – Flexibility in European companies'. The pack explores the flexibility strategies used at national and company level and their impact on employees.

Increased internationalisation of competition has created pressure from employers for flexibility or variation in pay. This affects both the process of wage regulation, particularly through collective bargaining, and pay outcomes. This fact sheet forms part of the Eurofound resource pack 'Unleashing the potential – Flexibility in European companies'. The pack explores the flexibility strategies used at national and company level and their impact on employees.

Companies need flexibility to respond to changing consumer demand, or to a new regulatory or competitive environment. This can often be controversial, especially when it involves flexibility in relation to such matters as pay, working time arrangements, contractual status and the organisation of work. This fact sheet forms part of the Eurofound resource pack 'Unleashing the potential – Flexibility in European companies'. The pack explores the flexibility strategies used at national and company level and their impact on employees.

Each company has their own reasons for applying a particular organisation of work and practices. Flexibility practices are usually not single measures but a package which suits the company, and which is placed into a national (and European) context and social infrastructure, as well as in national/sectoral traditions of social dialogue. This fact sheet forms part of the Eurofound resource pack 'Unleashing the potential – Flexibility in European companies'. The pack explores the flexibility strategies used at national and company level and their impact on employees.

The report provides an overview of the literature on innovative work practices and starts with an inventory of the many practices have been identified as innovative. The analytical part of the paper is based on Eurofound’s own European Company Survey (ECS). The dataset covers 27,160 establishments in 30 countries, probably making it the most extensive dataset ever used for this purpose and the only crossnational attempt. The four performance indicators are used: work climate, the lack of HR problems, labour productivity (compared with competitors) and the economic situation in the establishment. An executive summary is available.

The way an enterprise is managed has been proven to impact on the performance of companies. It is generally assumed that less rigid forms of work organisation are required to cope with more dynamic market conditions and product developments. To a greater extent than before they are intended to accommodate the requirements of a more knowledge intensive and learning workforce. These practices have been introduced primarily to improve performance and thus mirror the move from personnel to human resource management. Read more in the report.

Consensus forecasts point to slowing growth in the EU during 2012, with some at least indicating a return to recession. Sovereign debt issues in a growing number of Member States – the response to them and anxieties regarding their eventual resolution – are one important contributing factor. The fourth issue for 2011 includes: summary; current macroeconomic trends and prospects; overview of ERM cases October-December 2011; restructuring at SAAB, Sweden; restructuring in the banking sector; restructuring research notes: Eurofound's restructuring support measures database; note on methodology.

There are two approaches to age management at Abengoa. Firstly, Abengoa has HR practices and policies that promote the employability and mobility of all workers - although these policies apply to the whole workforce, regardless of age. These policies enable employees to remain in the job market and also help to extend their working life. Secondly, the organisation has specific age management policies including partial retirement policies. A résumé is available.

The HR department at Ford works in accordance with the Ford Collective Agreement agreed directly at the company level. The Collective Agreement has some specific policies aimed at older workers and these are implemented fully at Ford. The following elements of the Agreement directly affect this age group: seniority bonuses, retirement practices. A résumé is available.

While age management at the Borealis Group has always made use of generous regulations for early retirement – particularly at BAM and its predecessor AMI – there has also been a movement to maintain older workers in the workplace by creating sustainable work processes and adapting work practices to take into account employees’ needs. For this purpose, AMI, the predecessor of BAM, introduced a ‘productive ageing programme’ in 1997. This programme reviewed working conditions for older and younger shift workers, provided health training, and helped to adapt the environment ergonomically.

Respondents in Kiruna Regional Administration agree that there have been rapid developments within local governments with relation to age management. In the early 2000s, the primary concern of local governments was to encourage older employees to leave employment early. By 2010, concerns had shifted, and local governments have realised that there will be high levels of retirement, and it will probably become difficult to recruit staff with even the most common competences (such as teachers and social workers). Thus, counties now aim to provide incentives to prolong working lives as long as possible. A résumé is available.

According to representatives of the company interviewed for this case study, there has been a greater willingness to recruit people aged 50 or more during the economic cycle of the past two to three years, but this is cyclical. Typically, when demand for labour increases in a positive economic cycle, more companies face talent shortages and recruit more 50+ individuals. However, according to our respondent, this is not sustained during an economic downturn. A résumé is available.

Vattenfall launched its age management programme in 2001. As an early adopter of such programmes and policies, Vattenfall has been seen as a forerunner in Sweden. It won an Employer of the Year Award in 2006 and received considerable attention in the media for the programme’s innovative approach. Vattenfall also sees itself as having well developed age management policies in comparison to other companies and organisations in Sweden. A résumé is available.

The experience of Made in Inox shows that micro-businesses are unlikely to have a dedicated human resources policy. Rather, they will have a general approach with informal processes, some specific age-related initiatives, and they will also aim to foster a specific organisational culture. Micro-businesses may also resist making redundancies and rely on longer-term relationships with their employees. A résumé is available.

Cambridgeshire County Council’s 2006–2010 people strategy sets priorities and limits on age management of employees. It commits the council to encouraging and maintaining diversity in recruitment and promotion, letting of contracts, training, and in publicity for and access to services. To support age diversity in the workforce, the council has implemented a range of policies and practices open to the entire workforce, but that are likely to be of particular relevance and interest to older workers. A résumé is available.

According to the head of the HR department, age management is a relatively recent concept in the Czech Republic. However, although the concept is still developing, the majority of HR officers in Czech organisations have already introduced age management measures to some extent into their practices. In the private sector in general, age management practices are less prevalent, often due to an excess of labour force supply over demand. However, in the media sector including TV production and broadcasting there is a shortage of qualified and experienced workers. This is particularly the case in technical and non-technical positions such as cameramen, editors and technicians. These highly skilled and specialised roles are often filled by older workers over 50 years of age. A résumé is available.

BT has an ‘age neutral’ approach to promoting diversity and equality among age groups in its workforce. The organisation’s equal opportunities and diversity policy aims to ensure everyone should have the same opportunities for employment and promotion based on their ability, qualifications and suitability for the work. While BT recognises that it has an ageing workforce, reflecting changes in UK society, its age neutral approach means that older age groups cannot specifically benefit in policies and practices. However, there are policies and practices that are more likely to benefit or be relevant to older workers, but that are open to workers belonging to any age group. A résumé is available.

T-Mobile HR manager confirmed that age management is an emerging concept in the Czech Republic in general and in the company’s HR policy in particular. Czech firms have not developed age management measures in greater extent due to the excess of labour force supply over demand. In addition, early retirement has been consistently used in the Czech Republic as a way to manage the workforce. However, the concept of age management has gained prominence in recent times, due to the demographic development of Czech society and the expected age structure of companies’ employees. A résumé is available.

MOL faces a number of challenges related to an ageing workforce. As a formerly state-owned company, there is a tradition of lifelong careers that makes MOL attractive for employees. HR policies currently continue to support lifelong employment. The company’s approach is to seek to employ workers as long as their physical and mental condition remain sufficient to fulfil their assignments. A résumé is available.

MT age management policies are viewed internally to be in line with trends among similar large companies in Hungary. Large companies, including MT, are generally characterised by a relatively secure position in the market. They are subsequently able to maintain a consistent HR policy towards employees. Voluntary departures account for approximately 6% of the workforce turnover and often consist of older workers (50 or more) using the early retirement option. A résumé is available.

There is a clearly defined age management policy in place in Proniks Ltd. Older staff are considered to be a valuable asset. In other jobs and sectors, older employees may be considered less suitable for employment for a number of reasons (e.g. lack of up-to-date skills), this is not the case in this particular sector. In the cloth manufacturing sector, older staff who have relevant qualifications and considerable professional skills and experience are highly sought after. Due to the challenges of recruiting younger employees with the necessary experience and qualifications, Proniks has adopted a proactive HR strategy that is specifically orientated towards hiring and retaining older, highly qualified and experienced individuals. A résumé is available.

In the Netherlands, until 2008 workers over the age of 52 were entitled to additional holiday entitlements of one day a week. However, as part of the efforts to make employing older staff more attractive to companies, the trade unions agreed that in some sectors older workers should lose their preferential age-related benefits, such as additional holidays. Instead, employers were encouraged to invest more in education and training. A résumé is available.

DHV is a company reliant on the knowledge and personal skills of people. People are the most important asset of the company, and as a consequence the philosophy is to ensure strong HR policies that encourage employability and mobility of workers over time for the entire workforce. The company has therefore placed strong emphasis on training and development, on promoting a healthy workforce, as well as on new ways of working, all of which provide more freedom for workers to choose the means to do their work. These measures specifically address the main causes for which older people exit the labour market early (health, degradation of skills, and lack of flexibility in work arrangements). A résumé is available.

As is the case in many other organisations operating in the transport industry in Latvia, Latvian Railway Group’s human resources (HR) strategy, policies and activities are built on the General Agreement and collective agreements. The aim of the General Agreement and collective agreements is to ensure that all employees, irrespective of their age or other demographic characteristics, have equal access to the benefits provided by these agreements. However, collective agreements offer a particular protection for those older employees who are coming close to retirement age. A résumé is available.

Eurofound’s research on ‘Restructuring in recession and labour force participation’ explored the age management practices of companies in light of restructuring undergone during the recession. The study looked at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union (EU) Member States. This is the report for Belgium. A résumé is available.

Eurofound’s research on ‘Restructuring in recession and labour force participation’ explored the age management practices of companies in light of restructuring undergone during the recession. The study looked at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union (EU) Member States. This is the report for Hungary. A résumé is available.

Eurofound’s research on ‘Restructuring in recession and labour force participation’ explored the age management practices of companies in light of restructuring undergone during the recession. The study looked at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union (EU) Member States. This is the report for Latvia. A résumé is available.

Eurofound’s research on ‘Restructuring in recession and labour force participation’ explored the age management practices of companies in light of restructuring undergone during the recession. The study looked at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union (EU) Member States. This is the report for Austria. A résumé is available.

Eurofound’s research on ‘Restructuring in recession and labour force participation’ explored the age management practices of companies in light of restructuring undergone during the recession. The study looked at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union (EU) Member States. This is the report for the UK. A résumé is available.

Eurofound’s research on ‘Restructuring in recession and labour force participation’ explored the age management practices of companies in light of restructuring undergone during the recession. The study looked at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union (EU) Member States. This is the report for the Czech Republic. A résumé is available.

Eurofound’s research on ‘Restructuring in recession and labour force participation’ explored the age management practices of companies in light of restructuring undergone during the recession. The study looked at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union (EU) Member States. This is the report for the Netherlands. A résumé is available.

Eurofound’s research on ‘Restructuring in recession and labour force participation’ explored the age management practices of companies in light of restructuring undergone during the recession. The study looked at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union (EU) Member States. This is the report for Sweden. A résumé is available.

Eurofound’s research on ‘Restructuring in recession and labour force participation’ explored the age management practices of companies in light of restructuring undergone during the recession. The study looked at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union (EU) Member States. This is the report for Spain. A résumé is available.

Vienna General Hospital sees the importance of the tackling the issue of ageing in terms of organisational strategy, organisational culture, personal development, organisation of work, and individual health of employees. The human resource department at Vienna General Hospital is responsible for the management of a distinctive skill mix. According to HR, amongst the personnel employed by the hospital, age management of qualified nursing staff is of particular concern. A résumé is available.

This case study looks at the way in which the Plansee Group in Austria has sought to ensure a ‘soft landing’ for employees affected by the global economic downturn. Having seen a collapse in demand in 2008, primarily in the parts of its business supplying metal products to the ailing vehicle manufacturing industry, Plansee Group has nevertheless been able to avoid involuntary redundancies by making a significant investment in retraining and by making use of shorttime work arrangements.

The aim of this study is to provide an update on recent policies which have been initiated by governments and social partners in an effort to stimulate and support job creation in self-employment and one-person and micro enterprises. The study focuses particularly on measures initiated since 2008 that have been driven, adapted or changed by the economic crisis. It also looks at ‘good practice’ measures used in different countries that can successfully result in job creation. Read more in the report.

Eurofound’s research on ‘Restructuring in recession and labour force participation’ explored the age management practices of companies in light of restructuring undergone during the recession. The study looked at policy in relation to the retention of older workers (aged 50 or more) in employment at national and establishment levels in nine European Union (EU) Member States: Austria, Belgium, the Czech Republic, Hungary, Latvia, the Netherlands, Spain, Sweden and the United Kingdom. Country reports and cases studies are available.