Netherlands: Proposal to Cut Duration of Unemployment Benefits to Encourage Older Workers To Seek Work

According to published reports, Chris Buijink, Secretary-General of the Ministry of Economic Affairs of the Netherlands, has called for reducing the length of time people can claim unemployment benefit to encourage them to find work as quickly as possible. Writing in the economics journal "Economic Statistische Berichten" (ESB), Buijink suggested that a reduction in the length of time income-related jobless benefit is paid would be an important stimulus to find new work, particularly among older workers.

The long slide towards a pension must be made less attractive. Unemployment is still an attractive way out for many older workers,' he said. While there have been improvements in the job take-up rate among older workers, just 26% of people aged 60 to 64 still have a job, he pointed out.

However, "Christian Democrat spokesman Eddy van Hijum and Labour's Roos Vermeij told Trouw it was too simplistic to say older workers would be encouraged to stay in work if their benefit rights were cut." Instead, they argued, "efforts need to be made to change the working culture and employers must be encouraged to invest in their older staff. Only some 26% of the over 60s are still in work."

Sources: Dutch News "Top civil servant calls for jobless benefit cuts" (January 7, 2010); NRC Handelsblad "Topman EZ wil dat WW wordt beperkt" (January 7, 2010); Dutch News "Jobless benefit cut no solution for older staff" (January 8, 2010)

Netherlands: Government Encourages Work Changes to Allow Later Retirement

Netherlands social affairs minister Piet Hein Donner has said taht people involved in physically heavy jobs, such as construction work, should be able to switch to lighter tasks so they can continue to work after they are 62.

In addition, Donner says that the government is working on measures for to make older staff more attractive to employers. This could include giving employers a discount on social security contributions if they employ someone between 62 and 65 years.

Sources: NU.nl "'Doorwerken in andere baan na zwaar werk'" ["'Give older workers lighter tasks'"] (September 3, 2008)

OECD Report on Netherlands Includes Focus on Increasing Participation of Older Workers

The Organisation for Economic Co-operation and Development(OECD), in issuing its "Economic survey of the Netherlands 2008" making assessments and recommendations on the main economic challenges faced by the Netherlands, has specifically focused, among other things, on the role of older workers in the Dutch economy. Although it finds that it has made a strong comeback, the economy is now facing labour shortages, related to the greying of the population and the continued weak labour market-participation of several groups.

OECD recommendations include the adoption of incentives to increase participation in the labour market, including at older ages, so as to widen the revenue basis and, to encourage older workers, strengthen job search requirements and continue making the tax-benefit system more work-friendly.

In his remarkes at a joint press conference held with the Minister of Economic affairs, OECD Secretary General Angel Gurría said:

To further increase participation of older workers, the government should move ahead with its planned reforms and make them more encompassing. Particularly, the new levy on pensioners who stopped working before the official retirement age could be implemented faster and not be applied only to higher income levels. In addition, measures should be taken to reduce the possibility of using the unemployment benefit system, in combination with generous severance payments, as a transition into early retirement.

Sources: OECD Executive Summary (January 31, 2008); NIS News Bulletin " OECD Urges Netherlands to be Tougher on Welfare Recipients" (February 1, 2008)

Netherlands: Parliament Debates Plans To Boost Older Workers

According to news reports, in the context of a debate on the social affairs ministry budget,
members of the Dutch Parliament from across the political spectrum are drawing up plans aimed at boosting the percentage of older people at work. "Christian Democrat MPs want to combat the ‘negative image’ attached to older workers, news agency ANP reports. MP Eddy van Hijum, who is launching the CDA’s plan, says employers often mistakenly believe that older members of staff are less productive and take more days off sick."

In addition, Liberal party members propose scrapping the unemployment premium for employees over 55 and want an end to the age limit of 45 which has become the norm for jobs in the police force. Labour MPs want employers to invest not only in younger workers by making sure that all members of staff are legally entitled to extra training and are proposing a "no risk" policy for older workers which would free employers from paying sick benefits.

Source: DutchNews "MPs want boost for older workers" (December 11, 2007); "MPs back plan to boost older workers" (December 11, 2007)

Netherlands: Focus on Age Discrimination

According to an article in Expatica, age discrimination is increasingly prevalent, and less talked about in the Netherlands than other forms of discrimination.
Of the 694 complaints of discrimination submitted to the Dutch Committee for Equal Treatment (CGB) in 2006, 219 dealt exclusively with discrimination on the basis of age.

Older employees tend to be less likely to be promoted or invited for job interviews, even when their resume are similar or better to younger candidates, according to a recent CGB report.

In addition, companies that are forced to reorganise usually prefer to fire older employees first. Older employees are also the least likely to be offered outplacement programmes that help make a quick transfer to a different company.

While laws may help the older workers who do file complaints, some insiders say only economic need will end age discrimination; as the baby boomers retire, the larger work force requirements can only be realized if companies decide to retain their senior professionals.

Source: Expatica.com "'Older' workers in Holland facing age discrimination" (October 12, 2007)

Netherlands: Working Past Retirement Age

Ann-Marie Michel of Radio Netherlands interviews Ger Thielen, co-ordinating secretary of the Taskforce for Older People and Employment, to address the "ominous rumblings" in Dutch newspapers about fewer workers caring for more retirees who'll live longer than ever and expect top quality of life and the government's push for drastic changes to the pension system in a bid to keep people working longer. With automatic retirement at 65--or earlier--likely to be a thing of the past, Thielen says:

You're always too late, of course, and looking at the demographic developments, I think we seriously have to try to improve participation of many people in a lot of areas, otherwise this complex society will not survive.

Source: "Working past the retirement age" Radio Netherlands (February 28, 2005)