Monday, 22 February 2010

Mandatory Retirement in the UK, Canada and the USA

TAEN has produced a most enlightening summary of how the US and Canada compare with the UK in how they deal with mandatory retirement.   The US abandoned it in 1986 and the Canadians in 2009. There is an excellent review of the arguments typically advanced by employers to justify mandatory retirement. Without exception the research clearly shoots down each one:
  • younger employees are more productive than older ones
  • Wage premiums and monitoring costs would increase
  • Older workers need to make room for the young
  • it facilitates workforce planning
Read this. It is fascinating and makes you wonder just what the CBI is frightened of. Inadequate managers is the term that comes immediately to mind.

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