Employment rate of older people far below the EU average

Source: AK Wien, IFES

Around 35% of persons aged 45 to 59 who were not engaged in further training activities justify this on age grounds. Around 20% say that they do not need further training for their job. Surprisingly, the latter explanation is also put forward by nearly 20% of persons aged 30 to 44.

International comparison shows that countries with a high and constant level of participation in further training measures also have a high rate of employment among older people.

Therefore, experts call for:

• a stronger link between basic education and further training through a structured programme;

• initiatives for the improvement of the basic qualifications of adults;

• regional educational management (cooperation of SMEs in order to effect in-house training); and

• the extension of funding such as the 'educational cheque' ('Bildungsscheckmodelle') to older workers as an incentive to participate in further training activities. Currently, training costs are only partially refunded.

Supportive measures

The situation regarding the dismissal of older workers was unprotected in post-war Austria. Resulting from measures such as the safety net for older unemployed people and the easier access to early retirement from the end of the 1970s, the situation improved.

Especially in the last few years, many measures were put in place in order to combat unemployment among older people, to keep them in employment and to relieve the social insurance system. The following are the most important actions:

• restriction of the access to invalidity pensions and to part-time work schemes for older employees (AT0209202F). So far, employers have used the part-time scheme as a tool for restructuring and improving performance;

• introduction of a fine for the dismissal of persons aged over 50 who have been ten years with the company;

• protection against the dismissal of persons aged over 50 who have been at least two years with a company that has more than five employees;

• unemployed older people on retirement able to claim a statutory retirement pension;

• incentives to older employees to become self-employed;

• active labour market policy measures, e.g. re-employment schemes, settling-in grants;

• reduction of non-wage labour costs for older employees; and

• weakening of the 'seniority principle', as far as the employment terms are concerned.

The social partners agree that the productive employment of employees of all age groups is their common objective. In 2002, they established a website with the specific aim of informing and advising companies, works councils and employees on how to create a work environment that is sensitive to age.

The Second Survey on Working Conditions of the European Foundation for the Improvement of Living and Working Conditions found that Austrian employees feel especially discriminated against for reasons of age. According to surveys carried in the 1990s, at least 60% of Austrian companies have an upper age limit set for personnel recruitment. This limit is defined as the age of 40 in 70% of these companies.

The 2000 EU framework equal treatment Directive is a tool to combat discrimination in employment in respect to religion, disability, sexual orientation and age. If a person finds themselves the victim of unequal treatment for reasons of age in terms of recruitment, further training or career advancement, they can appeal to national bodies such as the Equal Opportunities Commission or the courts.

Commentary

Current measures, such as the protection against dismissal for older employees or the restricted access to invalidity pension or early retirement, focus on older people who are still employed. The focus should be on keeping older people in employment as long as possible. This approach is less effective when it comes to reintegrating unemployed older people into the labour market.

Today’s huge demographic and economic changes require corresponding adaptations in the work environment; they also call into question the stereotype of the ideal worker as a young, healthy and unattached male worker. The health, motivation and qualifications of older employees have to be actively supported and companies have to learn how to use the advantages of an age-mixed workforce.

Furthermore, further training and the concept of lifelong learning must become essential parts of the working world. So far, further training courses barely take into account age-specific learning. The low awareness of the necessity for further training among all age groups indicates that there is a call for action. (Sonja Strohmer, University of Vienna)