Opinion of the European Economic and Social Committee on the ‘Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions on increasing the employment of older workers and delaying the exit from the labour market’(COM(2004) 146 final)
Date: 2004-12-15
Institutions: European Economic and Social Committee
Subjects: employment policy, labour market, older worker, population ageing, working population

C 157/120

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Official Journal of the European Union

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Opinion of the European Economic and Social Committee on the ‘Communication from the
Commission to the Council,
the European Economic and Social
Committee and the Committee of the Regions on increasing the employment of older workers
and delaying the exit from the labour market’

the European Parliament,

(COM(2004) 146 final)

(2005/C 157/22)

Procedure

On 3 March 2004, the Commission decided to consult the European Economic and Social Committee,
under Article 262 of the Treaty establishing the European Community, on the abovementioned communi-
cation.

The Section for Employment, Social Affairs and Citizenship, which was responsible for preparing the
Committee's work on the subject, adopted its opinion on 24 November 2004. The rapporteur was Mr
Dantin.

At its 413th plenary session held on 15 and 16 December 2004 (meeting of 15 December), the European
Economic and Social Committee adopted the following opinion by 125 votes in favour, 1 against and 5
abstentions.

Preamble

1. Introduction

‘The Committee feels that

In October 2000, the EESC commented in an own-initia-
I.
tive opinion that:
the issue of older
workers is of such importance that
it warrants an own-initiative
opinion addressing the different aspects of the problem. With this
opinion the Committee has also sought to stress the need for a posi-
tive approach to older workers, insofar as the way they are currently
treated not only reflects a discriminatory conception of society lacking
in solidarity, but in many cases results in the loss of highly qualified
staff and a consequent fall
level of competitiveness.
Furthermore, the Committee is of the view that if scientific progress
now allows more time to enjoy life, by the same token, our society
should seek to organise itself so that we get more out of life for
longer’ (1).

in the overall

II.
The contents of this own-initiative opinion, which was
adopted virtually unanimously at the plenary session, sets out
the Committee's thinking on this subject, reflecting the state of
its ideas and standpoints.

III.
The Communication from the Commission to the
Council, the European Parliament, the European Economic and
Social Committee and the Committee of
the Regions on
increasing the employment of older workers and delaying the
exit
this
from the labour market, which is the subject of
opinion, will therefore be examined in the light of the expecta-
tions, analyses,
the
above-mentioned own-initiative opinion. It will integrate those
elements which could be considered as new.

recommendations, and conclusions of

1.1
The Lisbon European Council set the European Union
an ambitious objective for the employment rate, which was to
be raised ‘as close as possible to 70 % by 2010’ and to 60 % for
women. This target is justified for both social and economic
reasons, as employment provides the best protection against
social exclusion. For individual companies and the economy as
a whole it
to increase employment rates of older
workers, so that labour shortages can be averted or mitigated
by making full use of the available workforce. In view of the
forecast decline in the working age population, achieving this
objective will
taxation
revenues and support social security systems.

stimulate economic growth, boost

is vital

1.2
For the majority of Member States, gradual achievement
of this target inevitably presents the particular challenge of
raising the employment rate of older workers.

1.2.1
It is precisely for this reason that promotion of active
ageing is reflected in the two complementary targets that the
European Union has set itself. Indeed, the Stockholm European
Council of 2001 concluded that half of the EU population in
the 55-64 age group should be in employment by 2010. As
for the Barcelona European Council of 2002, it concluded that
‘a progressive increase of about 5 years in the effective average
age at which people stop working in the European Union
should be sought by 2010’.

1.3
In its synthesis report to the 2004 European Spring
Council (2) the Commission has identified active ageing as one
of the three priority areas for which swift action is needed to
deliver the Lisbon strategy.

(1) Own-initiative opinion on Older workers, point 1.5, OJ C 14 of

16.1.2001, rapporteur: Mr Dantin.

(2) COM(2004) 29, Delivering Lisbon - Reforms for the Enlarged
from the Commission to the Spring European

Union, Report
Council.

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1.4
The purpose of the Communication under review is to
inform the debate about progress towards the Stockholm and
Barcelona targets and to highlight the role of governments and
social partners in promoting active ageing. The Communication
also responds to the request of the Barcelona European Council
to analyse progress in this field annually before every Spring
Council.

2.4
To return to the background of the present opinion, it
may be noted that, although the Communication offers a
precise
situations and their
outcomes, it does not concern itself with analysis of the causes,
and nor does it enter into the decisions of
the Barcelona
Council in any great depth.

and detailed description of

1.5
The present opinion is the contribution of the European
Economic and Social Committee to the debate on the employ-
ment rate of older workers, a debate which the Communication
under review has contributed to, and which should be brought
to an interim conclusion next December.

3. The facts

2. The Communication

The Communication states that with the ageing and the
2.1
expected shrinking of
the working age population, older
workers must be recognised for what they are: a core compo-
nent of labour supply and a key factor for the sustainable
development of the European Union.

According to the Communication, it follows that there
2.2
is an essential need for policies to maintain labour supply and
secure employability even in periods of overall
sluggish
employment growth.

2.3
To achieve this, it suggests that a preventative approach
based on mobilising the full potential of people of all ages in a
life-cycle perspective should be the main thrust of policy
measures.

It

therefore proposes

2.3.1
should
formulate and implement comprehensive strategies for active
ageing, which may include:

that Member States

— financial incentives to discourage early retirement, and to

make employment financially more attractive;

— access to training strategies and to lifelong learning;

— effective active labour market policies;

— good working conditions conducive to job retention, parti-
cularly in terms of health and safety, and flexible employ-
ment solutions.

3.1
By 2030 there will be 110 million people aged over 65
in the EU25, up from 71 million in 2000, and the working age
population will stand at 280 million compared to 303 million
today. As a result, the ratio of the total working population to
persons aged over 65 will fall from 4.27 to 2.55.

Parallel to these developments, the distribution of work
3.2
over the course of a lifetime has undergone major upheavals
over the last twenty years.

3.2.1
Young people are entering the labour market later
because of longer periods spent in full-time education, training,
and difficulties in finding suitable work (3).

3.2.2
The employment rate of the total population aged
over 55 has fallen considerably in Europe during the last three
decades, but also, to a lesser extent, across the Atlantic:
in
1999, it was 37 % in the 55-64 age group in the European
Union and 55 % in the United States (4). In 2002, in Europe,
there was a marked difference between the figures for men
(50.1 %) and for women (30.25 %), giving a total of 40.1 %.

3.2.3
The employment rate has declined continuously since
the 1970s up till recently, and on a large scale, particularly
between 1980 and 1985 (5). For example, between 1971 and
1999 the figure fell by 47.4 % in France, 45.8 % in the Nether-
lands, 39 % in Spain, 38.7 % in Germany, 30 % in Ireland, and
29 % in Portugal and the United Kingdom.
In 2002 the
employment rate for the 55-64 age group was 40.1 % in the
EU 15 and 38.7 % in the EU 25, (for an overview of the trends
for each Member State in the 1997-2002 period, refer to the
appendices) (6). It would probably be fair to speak of an indivi-
dualisation of career paths. However,
this does not always
reflect greater choice for the individual as early departure from
the labour market in some Member States is in general more
often imposed than chosen. The new flexibility at the end of a
career is instead a reflection of labour market pressures, the
human resource strategies of companies and public authorities
in response to them, (7) and, in many cases, the way pension
schemes are designed.

The Communication also points out

2.3.2
that much
stronger participation and commitment of the social partners
are needed in designing and implementing comprehensive
active ageing strategies. It emphasises the importance of the
role played by the social partners through collective agree-
ments.

(3) EESC opinion on Youth Unemployment, OJ C 18 of 22.1.1996,

Rapporteur: Mr Rupp.

(4) Contribution by the European Commission to the Lisbon Social

Affairs Council. Source: Eurostat.

(5) Source: Eurostat study of the active population, 1999.
(6) See Appendix 1.
(7) Guillemard 1986; Casey and Laczko 1989.

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3.3 Working life has therefore tended to become shorter at
both ends of the age spectrum, and at present it is dominated
by age groups situated in the middle of this spectrum.

3.4
The 50-64 age group is of particular importance for
employment policy. At the level of the EU15, the proportion of
the total population in this age group will increase from 25 %
in 1995 to 34.40 % in 2025. This increase will occur much
more quickly in the Scandinavian countries (8).

3.5
This development is particularly worrying in the context
of the acute demographic ageing which the European Union
will experience (9). The fact that the number of persons aged
over 60 is likely to overtake that of under-20s by the end of
the first decade of
the new century is a prospect whose
symbolic significance should not distract us from its worrying
implications. Indeed, this is only one stage in a process which
over the next 50 years could lead to a doubling of the ratio
between the number of retirees and the working age popula-
tion (from 4:10 to 8:10) (10).

3.6
However, the Communication under review points out
that some progress has been made recently towards achieving
the Stockholm and Barcelona targets. In 2002 employment of
older workers increased by 5.4 %, corresponding to a rise of
1.3 points in the employment rate to 40.1 %, while the average
exit age from the labour market increased from 60.4 years in
2001 to 60.8 in 2002.

3.6.1
However, the Communication points out that it would
be premature to interpret the increase in the exit age as a
strong indication of a positive trend, as there are only two
years of data.

The fact remains that

in the 55-64 age group,

3.7
the
average proportion of employees exiting the labour market at
the legal retirement age during 1995-2002 was a mere 35 %,
whereas 22 % took early retirement, 17 % were invalided out,
13 % left as a result of individual or collective redundancies,
and a further 13 % for other reasons (11).

3.7.1
Although these figures have improved over the last
few years, they are still revealing. One might think that in the
1980s the high number of employees taking early retirement,
and of those leaving due to illness or disability — which are
sometimes considered as substitutes for early retirement — was
connected with the intensive corporate restructuring of the
period. However,
in view of the persistence of the phenom-
enon, with only 35 % of employees exiting the labour market
at the legal age of retirement,
it now seems that this is an
inadequate explanation.

4. Finding solutions: the proposals made in the Communi-

cation

The first step towards readjusting the balance between
4.1
active and inactive workers,
increasing the average age of
exiting the labour market, and maintaining an optimally sized
workforce with regard to the demographic forecasts for the
European Union, involves raising the employment rate in the
over-55 age group. Of course, the employment rate also needs
to strike a good balance between employment and retirement,
leisure time and work, which is one of the values of the Euro-
pean social model.

3.6.2
Although there have been difficulties connected with
recent implementation of certain reforms, it would be useful to
go into more detail than the Communication does as to the
reasons behind this recovery,
in order to establish possible
approaches.

4.2
Such a step must be planned on a medium-term basis
by introducing a policy of maintaining life-long employability
and retraining employees — women as well as men — over
the age of 40. Indeed, it is difficult to imagine a spontaneously
harmonious scenario, in which the reversal of labour market
trends would be sufficient to convince companies to retain
their older workers.

In this context, it would also be helpful to see how
3.6.3
much of this recovery is, on the one hand, due to the introduc-
tion of measures whose primary, if not sole objective was to
increase the employment rate of older workers, and, on the
other, the direct or indirect result of changes made to social
their
protection systems,
economic viability, under threat from demographic trends and
forecasts.

intended primarily

to ensure

(8) Eurostat, 1997 population forecasts (base scenario).
(9) Demographic situation and prospects of

the European Union,

rapporteur: Mr Burnel.
(10) ‘Ages and employment

in 2010’, French Economic and Social

Council, October 2001, rapporteur: Mr Quintreau.

In addition to the practical measures which need to be
4.2.1
taken, it is essential for perceptions to change and for every-
thing possible to be done to bring about a change in atti-
tudes and to raise awareness among both companies and
employees. Working beyond the age of 55 must be viewed as
rewarding by employees, while companies and public services
must be aware of the benefits which older workers can bring
(experience, know-how, passing on knowledge, etc.).
It is
essential that collective awareness of the issue be raised in
order to ensure that the specific measures adopted are
fully effective.

(11) Source: Eurostat, Labour Force Survey, spring 2003 results.

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In its own-initiative opinion of October 2000 (12) on
4.2.2
this subject the Committee therefore urged the Commission to
promote, in cooperation with the Member States, an extensive
information and enlightenment campaign to help generate a
positive attitude to the role played by older workers in compa-
nies and the public services.

adapt and restructure if they are to succeed in a global environ-
ment at the same time as striking a balance between social and
economic concerns, as this is the only way of ensuring
It follows that companies
company dynamism and growth.
need room for manœuvre, a breathing space.

4.2.2.1
The EESC is pleased to note that its proposals have
been taken up by the Report of the High Level Group on the future
of social policy in an enlarged European Union, which appeared
towards the end of the first half of 2004.

4.3.1.3
This room for manoeuvre resides in the quantity
and quality of jobs, in particular those of older workers. This is
particularly the case with regard to ‘social plans’
introduced
after restructuring operations.

Also, there should be greater recognition of their role
4.2.3
in the social economy, in the family as well as in civil society,
democratic institutions, NGOs, and voluntary work in general,
which provides a direct demonstration of
their dynamism,
initiative and effectiveness.

In its Communication, the Commission presents its key

4.3
conditions for fostering the employment of older workers.

4.3.1 E a r ly r e t i r e me nt a nd fi na nc i a l i nc e nti v e s

Having noted that over 20 % of employees, or some 3 million
older workers,
leave their last job in order to take up early
retirement, the Communication proposes a review of ‘financial
incentives’ to ensure that the option of staying in the labour
market is financially rewarding.

The Committee believes that this proposal, which
4.3.1.1
should be seen in conjunction with the Communication on
Modernising social protection: making work pay (13),
is to be
welcomed in view of the type and quality of the measures
which it suggests. However, although this approach offers
some constructive suggestions, it is unlikely to outweigh the
decisive importance of such factors in the objective employ-
ment situation of workers as employability, management of
human resources throughout their working lives and particu-
larly during the second half, and, more generally, their situation
arising from the policies of a company. Regarding the private
lives of employees, the individual's own plans can also have an
effect on early retirement.

Irrespective of such ‘social plans’, the introduction of
4.3.1.4
early retirement enables companies to replace older workers,
who they view as relatively unproductive and as having obso-
lete skills, with younger and fewer workers. They view this as
helping to improve their competitiveness as well as lightening
their pay roll and rebalancing their age structure. Even if such
situations are difficult
this approach sometimes
reflects shortcomings in human resource management and an
absence of forward-looking management of jobs and qualifica-
tions. However, all such schemes have been made possible by
government measures and/or the social security systems of
individual Member States.

to avoid,

But

4.3.1.5
this should not obscure the real wishes of
employees. Among those who took up early retirement, only 4
out of 10 would have preferred to continue working (14).
Indeed, apart from those employees who are genuinely incapa-
citated, the widespread desire to share in a new and attractive
distribution of the benefits of growth must not be underesti-
mated, as well as the weariness that comes from doing an unre-
warding job in which there is little or no variety, and few
opportunities to switch jobs, sometimes for more than forty
years, causing people to aspire to a different lifestyle. It is often
with the feeling of having already ‘contributed a lot’, and in the
absence of prospects of finding a new and more suitable job,
that voluntary retirement is taken up.

4.3.1.2
In the context of continual and rapid changes to the
production system and manufacturing processes, and in a
continually evolving economy and market, companies must

Under the present conditions it can be said that a
4.3.1.6
convergence of interests often exists between the employee and
his company,
in other words an objective alliance which is
generally carried over into the collective agreements reached by
the social partners at different negotiating levels, including that
of companies.

(12) Older workers (rapporteur: Mr Dantin); OJ C 14 of 16.1.2001.
(13) Cf. SOC/162 – rapporteur Ms St-Hill.

(14) European Foundation for the Improvement of Living and Working

Conditions: ‘Combating age barriers in employment’, 1999.

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4.3.1.7
These circumstances and the problematic issues
described above feature prominently in attempts to justify early
retirement. In order to achieve changes, both this situation and
the factors outlined in point 4.3.2 need to be addressed.

4.3.3 G ood h e a lt h a nd sa fe t y c ondi ti ons a t w or k

the
The Communication rightly emphasises
second reason which causes employees to exit
the labour
market is long-term illness or disability, which affects 15 % of
the relevant population.

the fact

that

4.3.2 R e for m of e a r ly r e t i r e me nt

The Communication also refers in general terms to the need
for reform of early retirement arrangements. The EESC is in
favour of
it means
this general approach, provided that
encouraging older workers to stay at work and not making
them unemployed, as the objective is to increase the employ-
ment rate. As the Commission rightly emphasises,
‘incentives
for older workers to remain in the labour force must be
reflected in real prospects for employment’, whereas up till
now, early retirement has generally speaking been merely a
means at the disposal of the labour market for alleviating the
social costs engendered by long-term unemployment and exclu-
sion. In other words, early retirement has been used as an
instrument of ‘employment policy’ or more precisely as an
instrument to combat unemployment. In many Member States
it is clear that these instruments have often become, and are
considered by companies, as a human resource management
tool and by employees as a social benefit and entitlement.

4.3.2.1
The Committee is of the view that two sets of exam-
ples of early retirement are, however, worth consideration, and
merit attention and above all caution:

— early retirement in cases of large restructuring operations,
since it is true that, in terms of social cohesion, a ‘young’
pensioner is preferable to a long-term unemployed person
with no prospect of finding a job again; it should be borne
in mind that we can still expect industrial changes, particu-
larly in view of enlargement;

— total or partial early retirement offset by the recruitment of
a corresponding number of job-seekers, since it is also true
that it is better to have one person retired than to keep
another unemployed with no prospects of integration into
working life.

4.3.2.2
Furthermore, early retirement may be part of a
strategy for dealing with older workers who have endured
particularly difficult working conditions. Indeed, even though
life expectancy is generally increasing, individuals are affected
differently. There are considerable disparities between different
social groups,
in particular between ‘white-collar’ and ‘blue-
collar’ employees. For example, in 1999 the average life expec-
tancy of a white-collar employee at
the age of 35 was
44.5 years compared to 38 years for a blue-collar worker (15).
Any discussion on the duration of working life needs to take
these data into consideration. Reducing these inequalities is a
major concern.

However, these figures need to be seen in the light
4.3.3.1
of a tendency in certain Member States to re-classify some
unemployed workers as disabled or to use disability as a substi-
tute for early retirement (16).

it

is obvious that

Be that as it may,

4.3.3.2
improved
working conditions which are conducive to preservation of
health and physical well-being throughout working lives are a
factor which contributes to retention of employees. Also,
achieving the objective of high-quality jobs throughout the
working lives of employees by means of an emphasis on
ergonomics, on defining tasks, on research into the nature of
working conditions associated with particular positions and on
efforts to improve them, is of crucial significance for retaining
older workers in employment towards the end of their careers.

4.3.3.3
However, generally speaking, disability should not
be seen as something which necessarily entails leaving the
labour market. Indeed, employees who become disabled in the
course of their working lives represent a human asset with
considerable potential value. After the necessary process of
readjustment and with the help of additional training, they can
become extremely able at work of a different type than the job
which their disability prevents them from doing. With this in
mind, and in order to promote efficiency, it might be useful to
consider the cumulative impact of disability pension income
and salary income.

4.3.4 F le x i ble for ms of w or k or g a ni sa ti on

4.3.4.1
Flexible forms of work organisation prior to the
legal retirement age are another component of working condi-
tions that can foster job retention for older workers. National
surveys often show that a significant number of older workers
would prefer a gradual process of retirement, mainly due to
health reasons related to ageing, but also to provide a smooth
transition from working life to life without work. Early retire-
ment should become a process rather than a fixed date, in the
course of which the employees concerned can choose to
reduce their working hours gradually over time.

(15) Ibid 9.

(16) Ibid 1, paragraph 3.3.3.

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4.3.4.2
A widespread and almost exclusive focus on the
issue of retirement age means that working conditions for
older employees are not taken into account. Positive measures
relating to the end of working life such as gradual early retire-
ment have, for the most part, been undermined by the continu-
ance of total early retirement, and as a result have failed to
develop as intended. This situation needs to be changed. Rather
than retirement being an event which one would like to bring
forward as early as possible, it should become an individually
chosen and gradual process whereby employees, protected by a
set of collective guarantees, gradually reduce their working
time.

4.3.5 Conti nu i ng a cce ss t o tr a i ni ng

It should be remembered that, as the International Adult
Literacy Survey has pointed out, the productivity potential of
older workers is not impaired by age but by skills obsolescence
— something that can be corrected through training (17).

In view of the preceding comments, it should be noted that a
policy for age groups over 40-50 does not go far enough. As
the Belgian ‘Conseil supérieur de l'emploi’ (Higher Employment
Council) has rightly pointed out, a policy which seeks to
address the issue of older workers comes too late if it is only
applied to this category of workers. Instead what is needed is a
human resource policy which takes age into account as soon as
employees enter the labour market (18).

4.3.5.1 While the idea of lifelong learning has found wide-
spread acceptance in principle and is a core element of Euro-
pean employment policy, it is very worrying to note the figures
for participation by the workforce in education and training:
the average for the 25-29 age group is a mere 14 %, decreasing
with age to about 5 % for the 55-64 age group (19). There has
been very little growth, or indeed none, in this area over the
last few years.

4.3.5.2
In a production system in which jobs require an
increasingly high level of technical skills and know-how, this
situation is of continued concern, not only with regard to the
employment rate of older workers but also more generally to
European competitiveness. It is desirable, if not imperative, to
find a means of addressing this situation:

— companies need to make training part of their strategy, as a
mid-term and long-term investment, and should not expect
short-term or immediate returns;

— employees often experience difficulties in training, either
due to lack of enthusiasm, as is often the case of employees

(17) OECD, International Adult Literacy Survey (IALS).
(18) Ibid, 1 (4.3.2).
(19) Ibid, 10.

with few skills or no skills, or because they do not feel
capable on account of their lack of educational achieve-
ment, or because they do not feel any need as retirement is
imminent.

4.3.5.3
Of course, in this situation the social partners can
play a decisive role at all levels of negotiation. In view of this,
the Framework of actions for the development of lifelong competences
and qualifications adopted by the European social partners is a
major endeavour to promote lifelong learning for all age
groups. At the same time, public authorities, which should
ensure that an environment conducive to lifelong learning is in
place, also play a very important role.

4.3.5.4
However, vocational training, and lifelong learning
should not be considered in isolation, but should be incorpo-
rated into the management of employees' careers. It is impor-
tant
to ensure motivation through training at all ages to
enhance skills and boost career paths. From this perspective,
skill audits and validation of professional achievements are
tools which should be developed through individual career
plans linked to corporate objectives.

4.3.5.5 Much depends on how the European Union
the
responds to this challenge,
success of the Lisbon strategy. A general increase in participa-
tion by employees in vocational
training is needed, which
would also enhance the general level of skills and knowledge of
older workers.

to some extent,

including,

4.3.6 E ffe c ti v e a c ti v e la bou r ma r ke t p oli ci e s

it

is essential

4.3.6.1
The EESC shares the view expressed in the Commu-
nication that ‘to ensure that people can remain longer in employ-
ment,
to anticipate change and manage economic
restructuring successfully’. This comment ties in with one of the
causes of the situations discussed in this opinion, i.e. ‘above all
an absence of forward-looking management of jobs and qualifications’
(point 4.3.1.4).

The EESC also agrees that ‘personalised approaches to
4.3.6.2
including through guidance services, specific
meet individual needs,
training and outplacement systems are particularly crucial
in this
respect.’ To this end it would be helpful to consider, as envi-
saged in the Communication and practised in certain Member
States, bringing the unemployment benefit systems into play by
providing training and qualifications to assist unemployed
older workers in finding work, while maintaining entitlement
to unemployment benefits and providing guidance to encou-
rage transition to other work or self-employment.

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4.3.6.3
Implementation of effective active labour market
policies affects both supply and demand on labour markets.
The Committee is therefore pleased to note that the recommen-
dations made by the Communication keep this principle in
mind, as a balanced approach is one of the preconditions for
achieving tangible results.

However, other proposals and observations may be put
forward or outlined in greater detail.

4.3.7 Imp r ov e d q u a li ty i n w or k

4.3.7.1
The Communication rightly emphasises the crucial
importance of the quality of work in retaining older workers or
encouraging them to return to the labour market. Over the
same period, the number of older workers in jobs of mediocre
quality leaving the labour market is up to four times higher
than that of older workers in higher quality jobs, and twice as
high as that of young workers in jobs of mediocre quality (20).
This section of the Communication would be more accurate
and thought-provoking if
it had attempted to define the
concept of ‘quality in work’, and to outline the basis of a
possible solution. At the very least, a review of previous docu-
ments on this subject, such as COM(2003) 728 of 26.11.2003
or the report on Employment in Europe 2002, would have been
helpful.

4.4 Other proposals and observations

— Generally speaking, as in the case of other policy guidelines
of the Lisbon strategy, the strategy for Extending the age of
exit from the labour market could be more effectively imple-
mented if accompanied by steady growth, which would
benefit employment.

— The open method of coordination is used for various areas
connected with retirement. However, as far as ‘active
ageing’ is concerned, the Communication refers to a ‘peer
review programme’ organised within the context of the
European Employment Strategy. It is difficult to understand
why two different processes are needed. For practical
reasons and for the sake of efficiency it might be worth
concentrating on the idea of the ‘age of exit from the
labour marke’t, i.e. retirement in general, and thus to favour
the open method of coordination.

4.4.1 R e cr u i tme nt

Recruitment is of strategic significance for the employment rate
of older workers (22), but has been neglected in general discus-
sions on the subject. This aspect, which has to do with the
psychological dimension of the issue, discrimination and conse-
quently compliance with the European Union's Charter of
is not one of the main topics of the
Fundamental Rights,
Communication.

Nevertheless, it is vital to oppose all forms of discri-
4.4.1.1
mination which occur in the recruitment process, including age
discrimination against employees as discussed by the Commu-
nication under review. Recruitment methods should not be
allowed to make age a selection criterion. Rather, they should
focus more closely on identifying and making the most of the
skills acquired by individuals in the course of their career.
There is definitely a need to take the aspirations and choices of
employees into account, and particularly their desire for vari-
able working conditions (working hours, duration, breakdown
of tasks, etc.).

In this context it is interesting to note that in certain
4.4.1.2
Member States there are many civil service exams for which
the age limit is often in the region of 40, which means that
jobseekers from the private sector aged over 40 cannot apply.
This kind of discrimination is unacceptable, as it bars an unem-
ployed worker, even one who is qualified or highly qualified,
with qualities matching those required for a position, from
taking up employment, and deprives the civil service of the
experience of a former employee of the competitive sector. The
Member States bear full responsibility for this situation. As far
as the European Union is concerned, we would like to point
out that the Commission only agreed to remove age limits in
its own recruitment procedures in April 2002, after interven-
tion by the European Ombudsman. More recently,
in July
2004, the Ombudsman requested the Commission to remove
the age limit for recruitment of trainees, after a complaint had
been lodged. He considered this to be a case of unjustified
discrimination, while the complainant argued that it was in
breach of the European Union's Charter of Fundamental Rights.

— As far as the policy guidelines of the Stockholm European
Council are concerned, and in view of the considerations
set out in the preceding chapters, the EESC supports the
courses of action outlined in the Communication. As far as
the proposals of the Employment Taskforce are concerned,
we refer to the relevant Committee opinion (21).

(20) COM(2003) 728,

‘Improving quality in work: a review of recent

progress’.

4.4.1.3
It should also be pointed out that the large increase
in people leaving the labour market early has contributed to
the devaluing of older workers on the labour market and hence
their recruitment. The lowering of age thresholds with a view
to facilitating early departure from the labour market has had a
major impact on these workers as it has changed, in the mind
of employers, the age at which workers may be considered to
be ‘too old’.

(21) EESC opinion on Employment

rapporteur Ms
Hornung-Draus, co-rapporteur Mr Greif ; OJ C 110, 30.04.2004.

support measures,

(22) Ibid 11.

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Furthermore,

to retire and relax.

4.4.1.4
from a psychological perspective,
steeped in corporate behaviour, the older or ageing worker
implicitly feels that he is no longer viewed in a privileged way
as someone approaching the age at which he has the legitimate
right
Instead he has become someone
defined as ‘incapable’ of working or as ‘unemployable’. When
those drawing their pension have left work
nearly half of
before retirement age on the grounds of
‘disability’, as in
certain European Union countries, the subsequent time spent in
inactivity tends to be viewed not as time during which one is
entitled to take things easy, but as the inability to work. This
perception of age and its labelling effects inevitably has an
impact on behaviour in that it promotes a feeling of marginali-
sation — both in the mind of the employee and in reality —
with regard to their position in the company, on the labour
market and ultimately in society itself.

4.4.1.5
In keeping with the spirit of the European Union's
Charter of Fundamental Rights, Directive 2000/78/EC estab-
lished a general framework for equal treatment in employment
and occupation, which under certain circumstances prohibits
discrimination,
including discrimination on the basis of age.
This directive should have been transposed by December 2003
at the latest. It would be worth reviewing implementation of
the directive and assessing its effectiveness in the near future.

4.4.2 F le x i b i li ty

We have discussed the idea of a flexible retirement age as well
as the introduction of flexible organisation of working time
prior to early retirement (cf. 4.3.2). The same arguments apply
to retirement at the legal retirement age. After all, four out of
ten employees would have preferred to continue working (23),
for professional reasons,
for family reasons, or because of
personal interests (24). It is therefore important to offer more
flexible options for retirement in order to meet such aspira-
tions.

4.4.2.1 Workers should be permitted to withdraw gradually
from employment, instead of being forced to abruptly sever all
connections with their job at the legal retirement age as usually
happens at present. There should be provisions allowing
employees to work three-quarters, one-third, or half
time
towards the end of their working lives. It would be helpful to
examine the potential impact of setting salaries at a higher rate
than the percentage of hours worked, as an incentive for such
arrangements.

(23) Ibid 11

4.4.2.2
This time spent at work could be used, for example,
to share their experience with younger employees, in particular
through mentoring, support, or assistance with apprentice-
ship (25) and various work experience schemes. This would be a
win-win situation for all concerned, providing employees with
a rewarding task, companies with the opportunity to retain and
pass on know-how through individuals with the relevant
experience, and benefiting society as a whole through an
increase in the employment rate.

4.4.3 Wome n a nd e q u a l op p or tu ni ti e s

The Communication draws attention to the significant gap
between the employment rates of older women and men,
30.5 % and 50.1 % respectively. However, the gap between the
average ages of exiting the labour market is only a small one
(cf. table in Appendix 3) (26).

4.4.3.1
The gap between the employment rates of men and
women in this age group is related to a cohort effect, mirroring
the general make-up of the labour market. It is interesting that
this gap does not have any impact on the average age of
exiting the labour market.

4.4.3.2
Increasing the employment rate of women is an
essential condition for achieving the Stockholm targets. The
employment rate for this age group basically reflects employ-
ment rates for younger age groups, which means that the
employment rate for women in general, and not their age of
exit from the labour market, is the key issue.

4.4.3.3
Apart from the economic effects which arise from
this situation, it also raises the issue of equality repeatedly high-
lighted by the Committee, whether in relation to education,
training,
assigned to
equal pay, or
employees with the same qualifications.

responsibilities

the

4.4.3.4
Increasing employment rates for women necessarily
involves improving their access to the labour market. To this
end, provisions should be implemented to put men and
women on an equal footing in finding a life/work balance, by
developing a network of social services capable of meeting
private needs for care of minors (e.g. by providing crèche facil-
ities for infants; cf. table in Appendix 3), dependants (e.g. the
sick and the elderly), etc.

‘Age and Attitudes-Main Results from a Eurobarometer Survey’-
Commission of the EC, 1993.

(24) Ibid 1, paragraph 3.3.5.

(25) Ibid 1, paragraph 4.3.4.
(26) See Appendix 2.

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4.4.4 Colle c ti v e b a r g a i ni ng

According to the Communication, ‘despite the recent develop-
ments, social partners should broaden and intensify their efforts
both at national and EU level to establish a new culture on
ageing and management of change. Far too often, employers
continue to give priority to early retirement schemes.’

The EESC welcomes the line taken by the Communi-
4.4.4.1
cation in recognising the key role of social dialogue in contri-
buting to substantial progress. The Committee agrees with and
supports the Commission's approach and its aims, though it
would take them a stage further. If social dialogue and espe-
cially collective bargaining are to be intensified at national and
EU levels, they need to be sufficiently wide-ranging to encom-
pass customised solutions, as there are fewer and fewer all-
purpose, universally valid solutions. In view of this, various
professions on a European and national level, and consequently
also companies, should participate in collective bargaining, in
order to ensure that the specific features of professions such as
working conditions, organisation of work, how demanding the
work is, the level of qualifications required, etc. are taken into
account. Only then can general provisions be fully effective.

5. Strategy for raising the age of exit from the labour

market

5.1
One of the points made by paragraph 32 of the presi-
dency conclusions of the Barcelona European Council in regard
to current employment policies is that:

— ‘a progressive increase of about 5 years in the effective
average age at which people stop working in the European
Union should be sought by 2010’.

Taken as a whole,

the analyses and the proposals
5.2
discussed in the preceding paragraphs, which relate in particu-
lar to the decisions of the Stockholm European Council to raise
the employment rate in the 55-64 age group to 50 %, can
contribute to implementation of the Barcelona guidelines. After
all, each individual worker in the 55-64 age group who post-
pones his or her exit from the labour market contributes to an
increase in the effective average age at which people stop
working in the European Union.

5.3
Implementation of the decisions made by the Stockholm
European Council is essential for achieving progress as envi-
saged by the Barcelona guidelines. Thus, it is not possible either
to analyse or to evaluate ‘the progressive increase of the effec-
tive average age at which people stop working’ separately from
the ‘increase in the employment rate in the 55-64 age group’.

Indeed, given the difficulties which have been encoun-
5.4
tered in raising the employment rate in this age group,
it
would not be reasonable to approach the Barcelona target in
isolation, as this might lead to a proposal that it be achieved by
raising the legal retirement age.

5.5
It would hardly be logical to suggest such an option
when at present many employees who would like to complete
the term of their working lives are still unable to do so.

6. Conclusions and recommendations

6.1
The Committee reiterates the general approach of its
own-initiative opinion of October 2000 on Older workers,
which stresses ‘the need for a positive approach to older
workers, insofar as the way they are currently treated not only
reflects a discriminatory conception of society lacking in soli-
darity, but in many cases results in the loss of highly qualified
staff and a consequent fall in the overall level of competitive-
ness’.

6.1.1 With this in mind, the Committee is pleased to note
that the 2004 Spring European Council has identified active
ageing as one of the three priority areas in which swift action
is needed to deliver the Lisbon strategy. The Committee is
therefore pleased to note that the Commission has chosen, by
means of the Communication under review, to contribute to
the debate on the progress made towards the Barcelona and
Stockholm targets, and to examine the role of governments
and the social partners in promoting active ageing.

6.2
The EESC generally agrees with the main thrust of the
Communication's proposals for action. These represent possible
solutions and are to be welcomed subject to the observations
made in this opinion and the type and quality of the measures
incentives,
chosen as regards early retirement and financial
reform of arrangements for early retirement, flexible working-
time arrangements, health and safety at work, as well as
upgrading the quality of employment.

6.2.1
However, the Committee believes that, in addition to
the main areas of action chosen and the specific measures
it is essential for perceptions to change and for
undertaken,
everything possible to be done to bring about a change in
attitudes and to raise awareness among both companies
and employees. Working beyond the age of 55 must be
viewed as rewarding by employees, while companies and
public services must be aware of the benefits which older
workers can bring. It is essential that collective awareness
of the issue be raised in order to ensure that the specific
measures adopted are fully effective.

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6.2.2
The Committee therefore reiterates the call made in its
own-initiative opinion of October 2000 for the Commission to
promote, in cooperation with the Member States, an extensive
information and enlightenment campaign, targeted at the main
actors and society in general, to help generate a positive atti-
tude to the role played by older workers in companies, the
public services, and society as a whole.

The EESC is pleased to note that its proposals have
6.2.2.1
been taken on board by the Report of the High Level Group on the
social policy in an enlarged European Union, which
future of
appeared towards the end of the first half of 2004.

The European Economic and Social Committee also

6.3
considers that:

6.3.1
Any measures taken to achieve progress towards the
Stockholm and Barcelona objectives should be aimed solely at
retaining older employees or encouraging them to return to
work. Given that the objective is to increase employment rates
and to extend the age of exiting the labour market, the current
situation, particularly in regard to early retirement, should not
be changed in such a way as to lead to unemployment. As the
incentives for
Communication rightly points out,
older workers to remain in the labour force must be reflected
in real prospects for employment’.

‘obviously,

6.3.2
If employment rates, whether of the 55-64 age group
or of the workforce as a whole, are to rise, the EESC feels that
there is a need for increased employment among groups of
potential employees who are under-represented. Thus sweeping
measures should be adopted to tap into all labour reserves in
the European Union, whether of younger workers — who are
in the discouraging situation of being unemployed, a circum-
stance which bodes ill for future overall employment rates —
or of women and the disabled.

6.3.3
Vocational training and lifelong learning should not be
considered in isolation, but should be incorporated into the
management of employees' careers. It is important to ensure
motivation through training at all ages to enhance skills and
boost career paths. Otherwise, it will not be possible to ensure
that older employees are sufficiently skilled to be employable.

6.3.3.1
Generally speaking, it should be emphasised that the
application of any measures, not only those concerning
intended to increase employment of older workers,
training,

Brussels, 15 December 2004.

should not be delayed until the age of 40-50. Policies designed
to have an impact on older workers will come too late if they
only cover
this age group. Human resource management
should therefore take age into account from the moment that
employees join the workforce.

6.3.4
Recruitment needs to be made a priority issue. All
forms of discrimination based on age should be opposed. In
view of this, it would be worth reviewing the implementation
of Directive 2000/78/EC, which established a general frame-
work for equal treatment in employment, and, under certain
circumstances, prohibited all forms of discrimination, including
discrimination on the basis of age. This applies to all age
groups, whether old or young.

6.3.5
In the case of both retirement and early retirement,
there should be the option of gradually leaving employment.
The end of working life should not be an abrupt severance, an
event which employees often try to bring forward as early as
possible, but an individually chosen and gradual process
whereby employees, protected by a set of collective guarantees,
gradually reduce their working time. As an area for research
this idea could be given priority in the 2005
and action,
Employment Guidelines.

6.3.6
Social dialogue and especially collective bargaining
should be intensified at national and EU levels. They need to be
sufficiently wide-ranging to encompass customised solutions, as
there are fewer and fewer all-purpose, universally valid solu-
tions. In view of this, various professions on a European and
national level, and consequently also companies, should partici-
pate in collective bargaining, in order to ensure that the specific
features of professions such as working conditions, organisa-
tion of work, how demanding the work is, the level of qualifi-
cations required, etc. are taken into account.

6.3.6.1
priorities of the new Social Policy Agenda after 2006.

It would be helpful to make active aging one of the

The Committee believes that implementation of the
6.3.7
decisions made at Stockholm is of central
importance for
achieving the targets set by the Barcelona Council. At the same
time, it is convinced that ‘the increase of the effective average
age at which people stop working’ cannot be analysed or evalu-
ated separately from the ‘increase in the employment rate in
the 55-64 age group’.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND