L A BELLA MALMARIDADA

In this section, we will look at existing European policies on part-time for older workers and especially if there are policies on part-time for older workers with health problems.

Belgium79

The federal government in Belgium introduced a break scheme in 1985. The basic principle was to enable all employees to take a break or reduce their working hours for a certain period in agreement with their employer. For employees aged 50 and over who have been employed for 20 years or more, a half-time or a one-fifth reduction is possible, with no maximum duration (available up to retirement age). Women, especially, participate in the system. In 2002, 78% of all participants were female. The majority of men take breaks towards the end of their careers, when they are over 50. Although the scheme was meant to encourage a “longer working life”, its evaluation revealed that it might have a negative impact on labour market participation. It may be that people use it as a first step to early retirement rather than as an alternative.

The Flemish Region provides financial incentives in order to incite older workers to continue work part-time. It favours employment for old workers at the end of their career (Landings employment) to enable workers to stay in the labour market but in less physically demanding jobs.

Belgium also creates a Part-time allowance for older unemployed workers. In deed, Belgian authorities consider that part-time work could be an interesting solution for those with health problems or hard working conditions. Helping workers in bad health by adjusting their working time to their working capacity is one of the Belgian solutions to avoid some early retirement.

Denmark

Several of the collective bargaining agreements covered by LO/DA contain barriers and limitations on concluding part-time work agreements directly between employer and employee80_.

First, the seniors will be covered by senior-relevant provisions or social provisions/chapters in the agreement. Hence, in most agreements, seniors have the possibility to deviate from the contractual employment conditions and, for example, agree upon shorter working hours than those indicated in the agreement. Impediments or limits on collective bargaining agreements for the possibilities of already employed workers to conclude agreements for part-time work directly with the employer have been invalidated.

Germany81

In Germany, smooth transition to retirement is possible through the old-age part-time employment act. Old-age part-time work contracts can be concluded with persons aged 55 years or older who had been insured against unemployment or sickness benefits for at least three years during the last five and who are not yet entitled to an old-age pension without adjustment. The working time must be reduced by exactly 50% over the entire period of the agreement but the distribution of work during the contract period is completely flexible.

In practice, many collective agreements, especially in some larger sectors (including many industries where the hardship of work often leads to health problems for workers), contain regulations that are more beneficial, thereby encouraging employees to take up old-age part-time work contracts.

We can also notice that in 2000, eligibility of the scheme was extended to older persons working part- time to avoid the indirect discrimination against women that could have resulted from a regulation directed at full-time workers only.

Results show that although companies in some countries (e.g. Germany) are obliged by law to offer their employees adequate part-time jobs on request wherever possible, the managers of quite a large

79 _{Dick Moraal / Gudrun Schönfeld op. cit.}

80 _{Seniors and the Labour Market, Danish Employers' Confederation; 2003} 81 _{Dick Moraal / Gudrun Schönfeld op. cit.}

share of establishments regard such a transition as being very difficult, if not impossible. The switch from full-time to part-time hours is particularly difficult in companies that do not have recent experience of part-time work82_.

Spain

In the 1990s, the government reforms of the labour market in Spain set out to increase the low incidence of part-time work. Consequently, a series of reforms suppressed certain impediments to part-time work. The most recent legislation equalised pension rights of part-timers with those of their full-time counterparts.

Recent legislation has also introduced flexibility in the definition of working hours of part-time workers. Working time flexibility, job rotation and wider possibilities for a second career will be especially beneficial to older workers who want to continue to work but differently because of their abilities.

France

In France, some sectors with hard working conditions and workers in bad health, like steal industry for example, part-time retirement is proposed instead of early retirement.

In general, a phased retirement scheme is possible in France for all workers but under certain conditions. Phased retirement allows workers who are 60 years old or more to work part time and receive, in counter part, part of their state pension. Since 2006, conditions to enter this program have become less strict.

Netherlands

As noted in Part II, Netherlands had the highest number of people with part-time jobs. The following may help to understand the reasons.

In 1982, the “Agreement of Wassenaar” was adopted. “Time” was the key concept in this agreement. Firstly, all workers would get more free time. It was agreed that increases in the cost of living would be compensated partly in money and partly in extra days off per year. Secondly, there would be strong support for ageing workers to leave the labour market early83_.

The Equal Treatment (Working Hours) Act (1996) prohibits an employer from discriminating between full-time and part-time employees, unless there is an objective justification for doing so. It is also unlawful to discriminate between part-timers who work more or fewer hours. A part-time worker is proportionally entitled to the same pay, the same bonuses and the same number of days’ holiday. In February 2000, the Part-time Employment Act was passed, giving employees the right to reduce or increase their working hours, with employers able to deny employee requests for such changes only on the grounds of specific conflicting business interests. The Part-time Employment Act is part of the framework Work and Care Act, which brings together numerous existing and new leave provisions (such as time off to care for family members) aimed at helping reconcile employment and family care responsibilities. This legislation responds to a trend that was already set in a considerable number of collective agreements. In 1999, two thirds of the collective agreements in the Netherlands contained provisions on the adjustment of working hours for individuals84.

In 2004, the life-span leave (LSL) scheme was introduced. It is based on the personal savings of each participant. The scheme includes options to take part-time or full-time leave in all stages of a career. Austria85

Closely related to the abolition of early retirement schemes, the Austrian old-age part-time work scheme became a de facto alternative to early retirement. Employees could reduce working time while gross pay is not reduced proportionately. But it is compulsory to hire an additional employee as a replacement for the person in the old-age part time scheme.

By diverse policies Austria wants to find a balance between work and private life in the organisation of working time. Human resource management of each company is advised on what basis and how to go about organising the work rhythm of older workers.

Finland

Working Hours Act (1996; amended 2004) permits reduced work hours based on fatigue and the reduction of work efficiency caused by ageing, for example. The employer and employee can make an agreement for a maximum of 26 weeks with the possibility to continue the arrangement when work hours are reduced.

Finland has a part-time pension scheme. People above 56 years old can choose to work part-time and be compensated for their loss in income.

The part-time pension in Finland is an increasing popular way to achieve a smooth transition form work to retirement.

Sweden

In Sweden, the government has established an 11 point programme for better health in working life which includes measures for a better working environment and working time organisation.

In 1999, Sweden introduced a new public old-age pension system. Sweden wants to bring more flexibility into the old age pension system. From the age of 61 onwards it is possible to work and draw a pension at the same time.

The Swedish Agency for Government Employers believes that the system could help to retain older workers longer and secure a smooth transition of knowledge between generations.

United Kingdom

The “New Deal 50 plus” programme favours flexibility in working time through skills improvement for people aged 50 or more.

1.3.2 Comparative analysis

Phased retirement and part-time work for older workers is one of the important topics of ageing policies in European countries. All European countries have part-time programs for older workers but only a few insist on older workers with health problems, notably Nordic countries.

In Denmark, collective agreements have special clauses concerning part-time employment of older workers. Agreements between workers and employers are also promoted in Belgium, while in France and Germany, certain industrial sectors provide for part-time work for older workers.

Suppression of impediments to part time work has been favoured in Spain and the Netherlands; similarly in Italy, a new law gives protection to part-time workers and encouraging part time work. The Netherlands have a long history of promoting and protecting part-time employment.

The balance between 1) work and private life (Austria) or 2) work and care (Netherlands) is an important dimension for time budgets constrained by bad health.

An obstacle to part-time work might be low resources. Austria, The Netherlands and Finland compensate income losses due to reduced work hours. Several countries (notably Poland and Sweden) make it possible to draw at the same time a pension and income from work.

Table III.2: Summary of key national instruments / policies

Country Instrument / Policy

BE Enable all employees (50+) take a break or reduce their working hours for a certain period in agreement with their employer.

DK Part-time work of older workers is regulated by special chapters in collective agreements. DE Old-age part-time employment act. Some specific sectors contain regulations for part-time

work of older workers but employers are reluctant.

ES Suppression of impediments to part-time work for older workers.

FR Part-time schemes or phased retirement for some sector with hard working conditions. NL The Equal treatment act (same rights). Part-time Employment Act (takes into account care).

Life-span leave scheme (personal savings). Elderly employees can reduce their working time. AT Employees could reduce working time while gross pay is not reduced proportionately. FI Possibility to reduce working time based on fatigue and the reduction of work efficiency

caused by ageing. Compensation for income loss.

SE Measures for better working time organization in the program for better health in working life. From the age of 61 onwards it is possible to work and draw a pension at the same time. UK Flexibility in working time through skills improvement (with the “New deal 50 plus”).

The development of part-time work among older workers might be slowed down by employees or employers. One of the reasons given by employees for not switching from a full-time to a part-time job is the fear of suffering disadvantages at the workplace, particularly fewer career prospects. Also, its impact on old-age pension is not always clearly defined.

1.4 Conclusions

The review of national policies and programmes has identified promising initiatives, notably in the following areas:

- senior policy (centring on less physically demanding tasks and shorter working hours), - disability and activity limitations management,

- retention of workers with health problems (health prevention), - re-integration of workers after a long absence,

- working conditions and ergonomic aspects, - sensitisation of employers and trade unions, - work environment (requirements),

- incentives to continue working with better working environment, - rehabilitation,

- improving the disability pension schemes, - global health approach,

Nordic countries and in particular Denmark, Finland and Sweden have invested in health management of older workers through many programs and policies. Also, they promote a consensual approach between all involved parties.

The adaptation of working time (part-time work) plays an important role, notably:

- Phased retirement and part-time work for older workers, notably for older workers with health problems,

- collective agreements concerning part-time employment of older workers, - suppression of impediments to part time work,

- protecting social rights of part-time workers,

- compensation of income losses due to reduced work hours,

- possibility to draw at the same time a pension and income from part time work.

National policies aiming to guarantee equal rights with full time workers and compensation for income losses might help maintain people with chronic health problems on the labour market.

III.2. Financial (dis) incentives

2.1 Introduction

Differences in the health status of populations may not explain by itself the different employment rates across Europe. The employment rates of seniors are also influenced by institutional differences (pay- as-you-go system, early retirement schemes, disability pensions…) and the national labour market specificities (management of careers ends into companies, economic growth, adult learning, etc.). Differences in managing the end of work life, moving from work into retirement (approaches to accessing early retirement and weak incentives for pursuing professional activity), and deterioration in health status seem to be important factors.

If the legal age of retirement is tending towards 65 across Europe, differences remain in the age at which people stop working. This was 61 on average across the 25 Member States in 2004.

In the following, we will focus on earning tests, sickness and disability benefits.