Cheap elderly labor concerns unions

Labor unions FNV, CNV and VCP have said that the plan to keep employers in the labor market after their retirements will lead to unfair competition.

In a letter to the Second Chamber the unions warn that people whore are older than 65 are relatively cheap, which makes hiring younger personnel unattractive. The unions fear that the cabinet’s plans will spell disaster especially for young people and people older than 55. The cabinet reasons that by letting people continue to work after they reach retirement age will prevent experience from getting lost. This arrangement will be implemented in 2016. Companies that hire people that are older than 65 are required to spend less on employees’ insurance; in addition retirees often work for lower pay. ”That problem only gets worse when we let people work after their retirement age,” the unions wrote. They suggested as a possible solution to arrange a level playing field for retirees and non-retirees. “The cabinet should rather prioritize the fight against the high unemployment. Instead they are keeping people older than 65 at work, without proper employers’ rights and for lower pay. Of course we are not against anyone wanting to work after their retirement, but not this way,” the unions contend.