PAPER C

Committee :    RESOURCES SELECT COMMITTEE

Date :              9 OCTOBER 2002

Title :              EMPLOYMENT OVER AGE 65

REPORT OF THE HEAD OF PERSONNEL AND TRAINING SERVICES

SUMMARY/PURPOSE

To provide Members with further information regarding employees working over age 65 and to propose that the Council allows the 65 age barrier to be lifted.

BACKGROUND

The world of work is continuously changing. As well as economic and technological development, employers also have to manage the impact of social and demographic changes. The choice is either to wait until these changes occur and then react, or to anticipate and manage them effectively. The demographic situation in the UK means that there are fewer younger people of employment age and more older people available for work. By the year 2010, 40% of the workforce will be aged 45 or over while 16-24 year olds will make up 17% of the labour force. Notwithstanding this the Government will need to implement an EU Directive outlawing age discrimination by December 2006.

To maintain a competitive edge all organisations, including the Council, need to employ an age diverse workforce which the demands of its community and potential markets. Some people say that older workers are less able or willing to learn new skills. They point to the proverb that says ‘you can’t teach and old dog new tricks’. Many employers, though have found that this is simply not true. Many ‘older workers’ who lost their jobs in the 1980's and 1990's have successfully moved into new careers. That is not to say that older workers should be employed at the expense of younger people, or that they should be preferred to younger ones, simply because they are older. Age diversity is about getting the best person for the job, regardless of age, and making sure they have the skills or the life experiences they need to do the job. That applies whether it involves investing in the continuing development of the skills of older workers or the effective training and development of younger ones.

The Council needs people with skills and abilities which add value to the organisation. Using age as an arbitrary sifting measure for recruiting, training or promotion can mean ruling out the best person for the job. Employers who replace unnecessary age criteria with objective, job-related ones, will:

           •          have a wider choice of applicants from which to recruit to get the best person for the job

           •          manage resources more effectively by minimising staff turnover

           •          be better placed to build a more flexible, multi-skilled workforce

           •          develop a better motivated workforce which feels valued and is willing to contribute to the success of the organisation and;

           •          reduce costs through increased productivity and reduced levels of absenteeism

Currently, Council employees who reach the age of 65 have to leave their employment. The only exception to this rule is the employment of Road Crossing Patrol Attendants and Wight Leisure seasonal workers.

The Council’s Equal Opportunities Policy states that there will be no discrimination on the grounds of age and whilst it is not unlawful to require employees to retire at the age of 65 (although a recent Employment Tribunal case has placed a question mark over this), it would present a more positive image of the Council as an equal opportunity employer if we could show that we were serious about age diversity within the workforce. Members may therefore wish to consider abolishing a mandatory retirement age and encouraging employees to work as long as they want and allowing the recruitment of employees over the age of 65. The only condition for continued employment would be the ability and competence of the employee to do their job satisfactorily. Employees wishing to remain in employment after the age of 65 would discuss this with their line manager during their annual appraisal/performance review in their 65^th year and annually thereafter. Clearly, some guidance and ground rules would need to be established eg employees should be allowed to remain in work unless there are good reasons why not, the employee should have a right of appeal against their line manager’s decision, employees should seek the advice of the Pensions Office before a decision to work beyond the age of 65 is made etc.

The employment of younger people should not be ignored and the recruitment and training and development of young employees will be the subject of a future report.

OUTCOME OF CONSULTATIONS

There have been no consultations as yet with staff and trade unions. If the Resources select Committee feel that the Council’s retirement policy needs to be amended as suggested above then consultation will be carried out over the next three months and the outcome reported back to the Committee.

FINANCIAL IMPLICATIONS

None. Savings could well be made in advertising and recruitment costs.

LEGAL IMPLICATIONS

None. This report has no perceived direct relevance to S.17 of the Crime and Disorder Act.

OPTIONS

1.        To carry consultations with a view to varying the existing policy and allowing Council employees to remain in employment or be recruited beyond their 65^th birthday.

2.        Reaffirm the existing policy that all employees retire at the age of 65.

RECOMMENDATIONS

Approve Option 1.

BACKGROUND PAPERS

Various publications produced by the Employers’ Forum on Age.

Contact Point : Max Burton, ☎3121 

M BURTON

Head of Personnel and Training Services