26th March 2009
All the latest stories from the world of work
The European Court of Justice (ECJ) ruled
this month that the default retirement age in Britain did not contravene the
European directive on equal treatment.
This ruling comes as a blow for
anti-discrimination campaigners who argue that employers who force employees to
retire at 65 are practicing a form of unacceptable age discrimination.
However, the legal battle is far from over.
The ECJ has now referred the case back to the British courts, to look at whether
default retirement is legitimate way of achieving social policy objectives.
Employers Forum on Age director Catharine
Pusey said: "We are disappointed, though not surprised, by today's
judgment. This further proves that both the ECJ and government regulations are
completely behind the times in recognising the changes and pressures in the
modern workforce and society.
But John
Cridland, deputy director-general, CBI
said; “The decision by the European Court of Justice is a
victory for common sense. Some people can happily work in their existing job
beyond the age of 65, but this is not possible for all occupations.
"The current system - where there is a default retirement age of 65,
but people can request to carry on beyond this age - works well. It provides
flexibility, and our research shows that 81% of requests to work beyond 65 are
accepted. Companies don't want to lose good people, whatever their age."
The High Court ruling is expected to take
at least another 12 months.
More than half of employers have noticed
the negative effect of redundancies in their workplaces, a new survey by IRS
reports.
The research, which surveyed 266
organisations, found that 58.8 per cent of employers had seen a negative effect
on the morale of the remaining staff. They also noticed the loss of
'organisational memory', cited by 28% of employers. However, on the upside,
28.5% noted an increase in productivity.
The results of the survey come as other
employers try to find ways to avoid compulsory redundancies. Toyota announced this month that it is to cut
base pay and reduce working hours by 10 per cent to cut costs and avoid
redundancies.
A Toyota
spokesman said;
"Following extensive consultation with our employee representatives,
and with input from all employees, it has been agreed that the best way to
secure long-term employment is to temporarily reduce working hours and base pay
by 10%," he said.
"We believe the measures we have announced give us a greater
opportunity to maintain employment through this difficult period."
This arrangement is due to take effect
immediately and last for 12 months, subject to market conditions.
Business Secretary Peter
Mandelson announced that up to £27 million of government support would be made
available to Jaguar Land Rover for the development of a new, greener model.
The vehicle would be
designed, developed and manufactured in the UK. The car would be built at the
company’s Halewood factory. It is hoped the investment will safeguard jobs and
support UK
manufacturers to become world leaders in green technology.
Business Secretary Peter Mandelson said:
"The Government is fully committed to
supporting the UK
automotive industry as it moves to a lower carbon future. This project aims to
design and build a greener car in the UK, safeguarding vital skills and
technologies.
"The project would secure production and
employment at the Halewood facility and maintain the design capability for
Jaguar Land Rover in the UK.
This is an important investment for the future and we are delighted to be able
to offer thisgrant support."
