FRANCE The

Trends
Only when the legislative process was concluded was the
introduction of the “bridging system” re-moved from these laws
again. The idea of this system came from the report of the Hartz
Commission, which had submitted proposals for reform of labour
market policy in summer 2002, on behalf of the Federal
Government. Older unemployed persons aged 55+ were to have the
option of stating to the employment office that they “are no longer
willing to work and wish to retire from working life”. They were to
be able to draw, for a maximum of 60 months, a bridging payment
whose total was not to exceed the total unemployment benefit
entitlement of those concerned. The intention was to restrict the
availability of this option again in stages, owing to the demographic
trend. This proposal was in stark contrast to the Commission’s other
ideas, which were aimed at improving job placements, increasing the
effectiveness of the Federal Employment Service, and also at
integrating older workers. Peter Hartz, Labour Relations Director
of Volkswagen AG, obviously wanted to create new opportunities
for industry to continue the previous early retirement practice.
3.3 Collective bargaining policy
Collective agreements contain numerous provisions directly linked
to age. The most important provisions relate to protection against
dismissal, remuneration, working hours, work organisation and
occupational safety, and skills training. Since there is a wide range
of collective agreements, we can only cite a few examples here
(Bispinck and WSI-Tarifarchiv 2002):
• Protection against dismissal: statutory protection against
dismissal is associated with length of service. As length of service
increases, the notice period rises from one month to seven
months (with 20 years of service). These provisions are
completely optional in collective bargaining. In some collective
agreements the notice period is reduced (e.g. chemical industry,
maximum notice period six months); in others, additional stages
or combinations of age and length of service are introduced. In
some sectors, protection of older workers against dismissal has
been agreed. For example, in the metal industry in North
Württemberg/North Baden, employees aged 53+ with three
years of service cannot be subject to routine dismissal. Other
sectors have special periods of protection against dismissal in
rationalisation programmes (banking industry, paper industry).
Overall, provisions in collective agreements have extended the
protection of vested rights for older employees with many years
of service.
Table 5: Maximum compensation payments under collective agreements — selected sectors
• Remuneration: there are seniority-based remuneration systems
for white-collar workers in par-ticular (e.g. banking industry,
retail trade), with preferential treatment for older employees. A
direct link between age and remuneration is found in the private
sector only with white-collar workers, and usually only up to the
age of 28. In contrast, in the government service the
remuneration of both blue and white-collar workers is adjusted
every two years in line with rising age (up to the age of 45 at
most). These special provisions in the government service
drastically restrict mobility between the private and public
sectors. Many collective agreements contain minimum wage
stipulations for older workers (e.g. banking industry, metal
industry, retail trade). They protect older employees against loss
of earnings, permanently or for a transitional period, in the event
of transfer to another post or reorganisation of their job. If they
lose their job, special settlement clauses provide for them to
receive special compensation (Table 5).
• Working hours: shorter working hours have been agreed for older
workers in several collective bargaining sectors, to reduce their
workload. In the chemical industry, weekly working hours are
reduced by 2_ hours for workers aged 57+. In many sectors, extra
days off per year are also granted (insurance sector in Rhineland-
Pfalz, five days additional leave for workers aged 50+ with 12
years of service). It has recently been agreed that “long-term
accounts” will be set up for older workers, in which working
hours can be “saved” for a later reduction in working hours or for
early retirement (in the steel industry, for example, up to 15% of
annual earnings can be saved, and as much as 20% as from the
age of 45). In collective bargaining sectors covering 16.5 million
employees, it has been agreed that statutory payments towards
partial retirement will be topped up (Table 6).
• Work organisation/occupational safety: there have been a variety
of reactions to the often reduced performance of older workers.
In some cases there are attempts to modify working conditions so
these can be adhered to up to the standard retirement age. This
principle is laid down in agreements involving payment by results
in particular (e.g. piecework). For example, the framework
collective agreement for workers in the textile industry in Baden-
Württemberg states: “Normal performance shall be that human
performance that can be achieved in the long term by a suitable,
experienced and practised employee without injury to health”. In
other collective agreements, older workers are protected against
heavy workloads. In German seaport companies, for example,
workers aged 55+ are exempt from night shifts. At Deutsche Post
Collective bargaining sector Conditions Months of remun. (max.)
Banking industry Age 56 with 26 YS* 14
Clothing industry, West Age 55 with 25 YS 12
Chemical industry Age 60 with 25 YS 6
Deutsche Post AG As from age 55 with 25 YS 18
Printing industry Age 58 with 25 YS 12
Wood processing industry, North-Western Germany Age 64 with 25 YS 9
Metal industry, North W rttemberg/North Baden Age 59 with 25 YS 9
Government service, West Age 55 with 25 YS 18
Paper processing industry Age 58 with 25 YS 10
Confectionery industry, West Age 60 with 25 YS 12
Insurance industry Age 58 with 28 YS 16
*YS: years of service
Source: WSI-Tarifarchiv. As at 31.12.2001.
94 Spring 2003 | European Employment Observatory Review