Age discrimination in the workplace Hilary Metcalf National Institute of Economic and Social Research

Age discrimination ‘After comments from Mr Huhne questioning Sir Menzies' ability to lead the party in the next parliament due to his age,……’ The Guardian ‘The Tories were privately rejoicing that the Lib Dems had a leader [Menzies Campbell] who … was "too old".’ The Daily Telegraph ‘[Kenneth Clarke’s] opponents in the party ranks have been careful to remind their colleagues that Michael Howard, who resigned the leadership to make way for a fresh face, is a year younger [than Ken Clarke].’ The Times

Competence Nelson Mandela elected President of South Africa aged 75, retired aged 80. Ronald Reagan became President of the USA aged 70, re-elected President aged 74, left office aged 79. Winston Churchill’s third term as Prime Minister started at the age of 76. He resigned aged 80. Rupert Murdoch, aged 75 runs one of the world’s largest media conglomerates, with revenue of over $23 billion.

Age discrimination Age discrimination consists of actions which directly or indirectly affect people differently by age It can take place against people of any age: old, young and in-between

Age discrimination Direct Indirect age–related pay age criterion for recruitment, training, promotion, benefits mandatory retirement  recruitment and promotion criteria, using: -period to retirement -expected length of service -length of experience -qualifications  service-related pay and benefits

The legislation: exceptions national default retirement age youth pay rates redundancy benefits benefits related to length of service of under five years

The legislation: other exceptions Genuine occupational requirement: where ‘possessing a characteristic related to age is a genuine and determining occupational requirement; [and] it is proportionate to apply that requirement in the particular case’ Length of service criteria of more than five years: where the criterion ‘fulfils a business need of his undertaking (for example, by encouraging the loyalty or motivation, or rewarding the experience, of some or all of his workers)’.

Employers’ practices representative survey of 2087 establishments with 5 or more employees conducted November May 2005 respondent: most senior person with an overview of human resource policies

Recruitment: discriminatory practices maximum recruitment age43% (under 65)(4%) recruitment advertisements specify age 6% target younger people for recruitment10% target older people for recruitment 7 % selection criteria include: - age 9% - potential length of service, judged by age 7% - potential length of service, judged by period to retirement18%

Promotion and training promotion affected by - age4% training selection criteria: - age 1% - period to retirement8% - potential length of service, judged by age1%

Pay: discriminatory practices starting salary takes into account age13% youth rates11% pay affected by age (other than youth rates) 5% length of service increments21% (automatic increments for more than 5 years) (5%)

Pay: hazardous practices starting salary affected by expected potential28% pay affected by expected likelihood of leaving16% merit pay without formal assessment15%

Other benefits eligibility for sick pay - minimum age - maximum age 6% level of sick pay affected by age1% annual leave based on length of service44% long service award33%

Redundancy (compulsory) selection criteria include –age 12% –length of service 40% –(last in first out, LIFO, 28%) redundancy pay (enhanced) affected by –age 10% –length of service 27%

Retirement compulsory retirement age: - under 65, 6% - 65, 27% - over 65, 2% Abolition of compulsory age –73% operate without a compulsory age or with flexible retirement age

Conclusions age plays a direct role in a wide range of policies and practices, most seriously in: –recruitment –compulsory retirement –redundancy time-related factors play a direct role in a wide range of policies and practices, most seriously in: –pay and benefits –redundancy

Age discrimination in the workplace Hilary Metcalf National Institute of Economic and Social Research Metcalf, H. with Meadows, P. (2006) Survey of employers' policies, practices and preferences relating to age. DWP Research Report No 325/DTI Employment Relations Research Series No 49. London: DWP/DTI.