Dissertation_Paula Aleksandrowicz_12 ... - Jacobs University

Dissertation_Paula Aleksandrowicz_12 ... - Jacobs University Dissertation_Paula Aleksandrowicz_12 ... - Jacobs University

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Managers had also more information on white-collar workplaces, whereas employee representatives argued from the stance of blue-collar workers. Employee representatives also remarked on the risen work intensity and higher performance demands as consequences of automatisation and staff cuts. The director in one firm critically remarked on the position of works councils in that debate: “The works council should not only represent those who suffer from hardships and burdens but also those who enjoy working” (Firm DE-3, short introduction by industrial relations director during company a tour in 2006). Confronted with impaired workers, about as many firms apply either the externalisation and the internalisation strategy. Structural factors (economic situation of the branch, personnel cuts) have an impact on which strategy is chosen. The firms do not discriminate against older workers in health and integration management as the externalisation, resp. internalisation policy is applied to all impaired workers. However, in the case of older workers, there is a wider choice among pathways of early exit. The qualitative panel proved valuable as it allowed to track the progress, resp. stagnation in health management measures announced at the time of the first interview. 4.2.6. Termination of the Employment Contract Good practice in shaping the end of workers´ careers entails gradual retirement options, giving workers the choice whether to work past retirement age, basing social selection in personnel reductions on objective criteria other than age, projecting beforehand the possible effects of early retirement upon the firm, and exhausting all other options of lowering personnel costs (e.g. short-time work, part-time work, sabbaticals, job sharing, time-limited employment) before resorting to personnel reductions (Naegele/Walker 2002: 232-3). I would add another criterion of good practice – to allow to use ATZ in the part-time model. In this chapter, I will depict the general regulatory framework at the end of working life, like the protection against dismissals or works council agreements on early exit pathways, and show how personnel reductions in many of the studied German firms have influenced the employment chances of incumbent older workers. Finally, I will present a ´good practice´ example on the basis of the previous findings. I will also test hypothesis 2 and hypothesis 3 (see section 2.2.). Almost all firms have codified a special protection against dismissals bound to age and tenure. It starts as early as at the age of 40 and a 15-year-tenure in the public sector or in 131

publicly owned firms (Firm DE-1, Firm DE-4, Firm DE-13), reaching to 50 years and a 15- year-tenure in most other firms. Five firms are covered by a sectoral agreement on ATZ, three firms by a company agreement concluded between the trade union and the firms´ management board, and seven – by a works council agreement on that issue (in addition to the sectoral agreement). In two firms, participation in the early retirement scheme is settled in individual negotiations on basis of the legal regulation. The bank is covered by a sectoral and a works council agreement on firm-level pre-retirement schemes (betriebliche Vorruhestände). Collective agreements on ATZ are wide-spread in the German economy (Bispinck 2005: XVII). The early retirement scheme is predominantly utilised in the blocked model (ibid; Stück 2003); that is also the case in the studied enterprises. In many other firms, part-time models are not accepted in practice or ruled out by regulations in the works council agreement. All firms have a regulation (usually codified in the industry-wide umbrella agreement) that the work contract ends upon reaching 65 years or upon reaching the “standard retirement age”. At the time of the first study, large-scale personnel reductions were under way in seven firms, and in five firms in 2006 (in one of those, it was a continuous process). All of the firms which were cutting staff levels used the early retirement scheme or firm-level preretirement schemes as a means to an end. Table 17 presents the main characteristics of firms which I managed to include in the second wave of my studies. The qualitative panel method allowed me to cross-check the behaviour of firms under conditions of employment stability and instability, and test the explanatory power of that variable (see Fig. 1 in chapter 2.). 132

Managers had also more information on white-collar workplaces, whereas employee<br />

representatives argued from the stance of blue-collar workers. Employee representatives<br />

also remarked on the risen work intensity and higher performance demands as consequences<br />

of automatisation and staff cuts. The director in one firm critically remarked on the position<br />

of works councils in that debate: “The works council should not only represent those who<br />

suffer from hardships and burdens but also those who enjoy working” (Firm DE-3, short<br />

introduction by industrial relations director during company a tour in 2006).<br />

Confronted with impaired workers, about as many firms apply either the externalisation<br />

and the internalisation strategy. Structural factors (economic situation of the branch,<br />

personnel cuts) have an impact on which strategy is chosen. The firms do not discriminate<br />

against older workers in health and integration management as the externalisation, resp.<br />

internalisation policy is applied to all impaired workers. However, in the case of older<br />

workers, there is a wider choice among pathways of early exit.<br />

The qualitative panel proved valuable as it allowed to track the progress, resp.<br />

stagnation in health management measures announced at the time of the first interview.<br />

4.2.6. Termination of the Employment Contract<br />

Good practice in shaping the end of workers´ careers entails gradual retirement options,<br />

giving workers the choice whether to work past retirement age, basing social selection in<br />

personnel reductions on objective criteria other than age, projecting beforehand the possible<br />

effects of early retirement upon the firm, and exhausting all other options of lowering<br />

personnel costs (e.g. short-time work, part-time work, sabbaticals, job sharing, time-limited<br />

employment) before resorting to personnel reductions (Naegele/Walker 2002: 232-3). I<br />

would add another criterion of good practice – to allow to use ATZ in the part-time model.<br />

In this chapter, I will depict the general regulatory framework at the end of working life,<br />

like the protection against dismissals or works council agreements on early exit pathways,<br />

and show how personnel reductions in many of the studied German firms have influenced<br />

the employment chances of incumbent older workers. Finally, I will present a ´good<br />

practice´ example on the basis of the previous findings. I will also test hypothesis 2 and<br />

hypothesis 3 (see section 2.2.).<br />

Almost all firms have codified a special protection against dismissals bound to age and<br />

tenure. It starts as early as at the age of 40 and a 15-year-tenure in the public sector or in<br />

131

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