Older Workers in Australia: the Myths, the Realities and the Battle Over Workforce 'Flexibility'

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[ (2005) Childhood today, 'rior, M (Eds), No Time to 1ustralian's Children, .1elbourne University Press. Older workers in Australia: 995) Qualitative {Hearing Data, Thousand The myths, the realities and the ations. d Research (2nd edn) battle over workforce ,flexibility' ile Census (1992) Statistical )tates. Washington DC, US Office. CHRIS KOSSEN t ofLabor (2007) Fact Sheet School of Humanities and Communication, Faculty of Arts, University of Southern Queensland, fedical Leave Act of1993. Toowoomba OLD, Australia 17, from http://www.dol. ;e/whd/whdfs28.htm CEC PEDERSEN ·searching Lived Experience: School of Management & Marketing, Faculty of Business, University of Southern Queensland, Action Sensitive Pedagogy, Toowoomba OLD, Australia Press. md Bailey JG (2004) ilildren with chronic illness: ABSTRACT and caring, Australian A decisive 2004 fourth term win for the Howard Government and control over the Senate provided }ood 29: 39-44. the Australian government with a mandate to forther deregulate the labour market in the name of nded grief at work: Jr children with chronic 'flexibility: This paper uses a critical perspective to challenge the wisdom ofneo-liberal market eco 7d Loss 13: 201-218. nomics as the driving force behind the rapid expansion ofnon-traditional 'flexible' forms ofwork king and Caring for a Child and the persistence ofa deficit model/perspective that continues to devalue the human capital value >isconnected and Doing It ofolder workers. It is argued that these trends will contribute•to ongoing under utilisation of'older' Macmillan. labour and intensification ofskill shortages, in part, as a result oflack ofinvestment in maintaining i P (1989) Targeted : the study of hidden human capitaL In responding to Australia's rapidly ageing workforce the Howard Government has ·oblems 36: 416-430. adopted modest'measures designed to counter age based discrimination and encourage workforce ort Gateway (2007) participation. However, participation rates among older workers in Australia have remained one of ved September 29, 2007 the lowest among Organisation for Economic Co-Operation and Development (OECD) countries. ingcarers.org.au/ :-tool-boxnegotiating-with This paper argues that the Government's labour market deregulation policies are reducing the avail .ce-laws.htrnl ability ofjobs that provide sufficient working conditions and remuneration to make workforce par 'amily Friendly Conditions ticipation attractive. The erosion of employment conditions associated with 'flexible' workforce 2-3. Retrieved September reform leads to underemployment, an employment outcome that often fails to meet the needs of 'www.worki.ngcarers.org.au/ many older workers. More recently, however, the Government has embarked on reforms that appear tter.pdf vothing 'Fair' About It, says to provide genuine incentives aimed specifically at attracting workforce participation by older work ieved September 10, 2007 ers, but unfortunately these are by and large confined to those aged 60 years and over. kingcarers.org.au/ :tersnothing-fair -about-it- Keywords: Older workers, mature aged workers, ageism, age discrimination, deficit model of ageing, stereotype, labour market deregulation, labour market reform, workforce flexibility, flexible labour, human 1endment (Work Choices) capital investment, industrial relations, workplace relations, WorkChoices. l October 19, 2006 from ·.gov.au/workplace/Category/ )VorkplaceRelations labour market because they have been the tradi oicesAct2005.htm INTRODUCTION his paper focuses on older workers as a tional targets in organisational down-sizing and T group at risk of being marginalised in the restructures and after leaving the workforce they Accepted 17 October 2007

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Chris Kossen and Cec Pedersen

experience far greater difficulty obtaining work, retrenchment of older workers2, as they were the particularly comparable and adequate employ main target of early redundancy policies aimed at ment. It will argue that the Australian Govern shedding workers (Trindler, Hulme & McCarthy ment's pursuit of continued labour market 1992). Many workers in the mature age cohort deregulation, including its WorkChoices 2005 also worked in industries experiencing the largest legislation!, when combined with persistent ageist declines in demand for labour, including manu stereotypes that inform contemporary human facturing and construction (Bureau of Labour resource practices, not only adversely affect the Market Research [BLMR] 1983; VandenHeuvel employment needs of many already marginalised 1999). At that time, large numbers of mature age older workers, but also the longer term productiv males with many with high standards of educa ity and labour supply needs of organisations and tion in comparison to previous generations were the future health of the Australian economy. It also retrenched from middle management and will do this by considering significant labour mar professional jobs. These displaced 'white collar' ket trends, then particular myths and J:ealities workers have experienced similar difficulties to relating to older workers and industrial relations their 'blue collar' counterparts in regaining reforms. It will be argued that older workers have secure full-time employment (Access Economics been stigmatised through a medical model that 2001; Bennington 2001; Borland 2004). Aus views age/ageing as a deficit thereby scarring the tralian Bureau of Statistics (ABS) data (cited in employability profile of many older workers Encel2003) shows that from the mid 1990s, one through preconceptions about impaired capacities in three workers over 45 years was not in the for productivity, performance and workplace workforce. While participation rates for mature training and learning. Despite changes to Work age females have continued to increase markedly Choices industrial relations policy with the 2007 since the 1970s, participation rates for both introduction of a 'fairness test', the Howard gov females and males decreases dramatically once ernment remains committed to a 'flexible' dereg they reach 5.5 years and over (ABS 2002a). ulated workforce that further disadvantages those Research has also shown that once unem older workers who are already marginalised. ployed, mature age workers experience consider However, it is also concluded that there are some ably reduced success in regaining employment recent signs in government policy showing gen than those in younger age groups. As a result, uine interest in keeping older workers in the mature age workers tend to be over represented in workforce. statistics on long-term unemployment (that is, people who have been unemployed for 12 months SIGNIFICANT LABOUR MARKET TRENDS or more). Additionally, the duration of unemploy Australia's economic downturns and industrial ment for mature age males more than doubled in restructuring, particularly in the 1970s and the two decades between 1979 and 1999 from 1980s, was the leading force behind the mass 25 to 59 weeks (ABS 1999a; 2002a; 2002b).

Workplace Relations Amendment (Work Choices) Act 2005. This Bill amends the Workplace Relations Act 1966in relation to: creation of a national workplace relations system, including the establishment of the Australian Fair Pay Commission (AFPC) sets and adjusts minimum and award classification wages, minimum conditions of employment; direct bargaining between employers and employees; the role of the Australian Industrial Relations Commission, particularly in relation to regulation of industrial action; a simplified system of awards; transmission of business rules; protection of key award conditions in bargaining processes; dispute settlement procedures; and extension of the compliance regime. (http://www.aph.gov.aullibrary/intguidellaw/workchoicesbill.htm) Broadly speaking the terms mature aged and older have been used interchangeably in the literature to define workers 45 years of age and over. It should be noted that the term worker is also being used to refer to those who are unemployed and those forced into what may be considered early retirement- provided they are available and willing to work (as per Australian Bureau of Statistics (ABS) definition).

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workers2, as they were the During the same period the average duration of workers despite a wealth of empirical evidence to lundancy policies aimed at unemployment for females rose from 27 to 44 the contrary. tdler, Hulme & McCarthy weeks (Landt & Pech 2001). Many of those in the In the 1990s Australian governments adopted in the mature age cohort mature age cohort have also had less access to edu modest measures to help counter age discrimina .es experiencing the largest cation and training in comparison to younger tion and disadvantage in employment for older r labour, including manu cohorts and this further undermines the employ workers, for example, enacting anti-age discrimi ction (Bureau of Labour ment prospects of some mature aged workers3. nation legislation and abolishing compulsory JR] 1983; VandenHeuvel Research has shown that workforce participation retirement for most occupations. Nonetheless, ~ge numbers of mature age rates among older workers in Australia remain one they by and large failed to give age discrimina high standards of educa- of the lowest among Organisation for Economic tion and the marginalisation of older workers a previous generations were Co-Operation and Development (OECD) coun significant level of attention. For example, the middle management and tries (OECD 2005). Howard government gives the impression that se displaced 'white collar' The past decade has seen substantial growth age-based marginalisation of older workers is fast ced similar difficulties to in jobs, the bulk of which have not been in stan becoming a key political priority, they appear to •unterparts in regaining dard full-time jobs, but instead in casual, short be more concerned with their WorkChoices yment (Access Economics term contracts, temporary labour hire and agenda aimed at further deregulating the labour 01; Borland 2004). Aus part-time forms of work (Hartmann 1998; Wat market - and this is likely to increase disadvan stics (ABS) data (cited in son, Buchanan, Campbell & Briggs 2003). The tage among marginalised groups, including many : from the mid 1990s, one high net growth of non-standard forms of vulnerable older workers. These legislative 45 years was not in the employment and the continued trend in reforms represent a further progression towards icipation rates for mature increased female participation has offset statisti the spreading of a 'contingent' model of precari med to increase markedly cal data on unemployment levels for mature age ous employment which drives down wages, con icipation rates for both workers. This, when combined with the ABS's ditions and job security, under the guise of :reases dramatically once wide range categorisation of mature age workers 'flexibility' (P~etz 2005a). Burgess and de Ruyter over (ABS 2002a). as a group between 45-64 years, conceals the (2000) and Crouch (1998) agree that this kind ;hown that once unem extent of unemployment, long term unemploy of flexibility tends to erode labour standards and ·kers experience consider ment and underemployment among older generate high rates of growth in non-standard n regaining employment mature age workers (underemployment cate employment and reduced numbers of secure full age groups. As a result, gorised as a form of'hidden unemployment'). time jobs: i to be over represented in Employers' perceptions about employing The aim of the deregulation strategy is to pro unemployment (that is, mature age workers shows many continue to duce more employment at the low end of the nemployed for 12 months have serious concerns about a perceived lack of skill and income chain, simultaneously engi :he duration of unemploy flexibility, ability to adapt to change and ability neering a general shift in the character of secu tles more than doubled in to learn and acquire new skills (Bennington & 'I rity away from public policy and towards I: en 1979 and 1999 from Wein 2000; Encel 2003; Encel & Studencki .I employer discretion as well as a major increase lo 1999a; 2002a; 2002b). 2004; Pickersgill, Briggs, Kitay, O'Keeffe & in social inequality Gillezeau 1996; Ranzijn, Carson & Wineberg (Crouch 1998:159). 'ace Relations Act 1966 in 2002; Salthouse & Maurer 1996; Steinberg, of the Australian Fair Pay 1 conditions of employment; Donald, Najman & Skerman 1996). These con In arguing his case for changes to industrial lelations Commission, cerns are a major disincentive to employing older relations laws Prime Minister Howard has nsmission of business rules; and extension of the I'

It is important to acknowledge that a substantial proportion of mature workers age workers are far from disadvantaged. iterature to define workers 45 Indeed many are very well positioned, with high-ranking jobs that have high levels of job security and remuneration. But those who are unemployed and in spite of this, ageing, for many mature age workers is a major risk factor leading to marginalisation from the labour d willing to work (as per force (specifically from secure full-time employment). While highly educated professionals are the group least likely to be marginalised this profile does not make individuals immune from retrenchment and marginalisation, as is evidenced by the existence of support groups for marginalised ex-executives such as Ex-Calibre.

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argued that employment conditions in Australia the majority of people these are very gradual Se 1 are damaging businesses because they are too with negligible mental decline for healthy people e11 I inflexible. Mr Howard argued that the Work before their mid to late seventies and for many, Seg Choices changes provide employers with more into and beyond their eighties (Hendricks & th~ I flexibility and as a result, higher rates of pro Hendricks 1977; Hooyman & Asuman-Kiyak ce~ ductivity needed to keep the economy strong, 1993). doi I create more jobs and provide higher wages Estes and Binney (1991) argue that ageing has rna . I (Howard 2005). However, Peetz (2005a) con been constructed as a process revolving around dlS I ter tends that the higher workplace productivity biological problems and deficit accumulation I argument is flawed and that in reality the which works to conceal a reality that many of the Hi I reforms are aimed at driving down wages costs problems associated with ageing are socially con laE I at the lower end of the income chain such as structed. Estes (1991) also claims that these pri those working in the services sectors of the kinds of social pressures can function subtly to lal I economy. He uses the following restaurant sce socialise older people into becoming less confi W< nario to demonstrate this point: dent and independent. For example, age stereo ' g

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Older workers in Australia: The myths, the realities and the battle over workforce 'flexibility'

le these are very gradual Segmented labour market theory, ers from core jobs. Older workers experience far decline for healthy people employability and scarring greater difficulty in rejoining the core workforce :e seventies and for many, Segmented labour market theory seeks to explain after leaving and it appears they already carry a ir eighties (Hendricks & the existence of persistent discrimination against substantial level of disadvantage which makes Jyman & Asuman-Kiyak certain groups within the labour pool and in them particularly susceptible to this scarring phe doing so poses a challenge to neo-liberallabour nomenon. 991) argue that ageing has market theory which conceptualises non-rational An issue of concern in this paper is that the process revolving around discrimination as imperfect information - that is, Government's WorkChoices 2005 reforms were md deficit accumulation temporary and self-correcting (Bauder 2001; in part designed to increase peripheral sector l a reality that many of the Hiebert 2004). In simple terms, the segmented employment by forcing more workers into mar th ageing are socially con labour market model asserts that employers have a ginal employment under the guise of 'flexibility'. ) also claims that these propensity to discriminate in the allocation of This does, to some degree, seem at odds with ·es can function subtly to labour according to core work and peripheral Government rhetoric that older workers must be into becoming less confi work (Black 1995). Core sector jobs are seen as encouraged to continue workforce participation . For example, age stereo 'good' jobs on the basis they are well paid and in order to address skill shortages and ensure sus everyday 'common-sense' secure (tend to be regular or full-time and perma tainable dependency ratios in the future. This :>u can't teach an old dog nent/ongoing) with good conditions (paid sick paper will now draw on literature that shows that elf promotes the view that and holiday leave) while also providing opportuni the productivity, performance and learning 1itable candidates for edu- ties for skill development, training and career pro capacities of older workers as a group are gression through to higher ranks and pay rates. . favourable, despite strongly rooted stereotypes employment literature In contrast, peripheral sector jobs tend to that indicate otherwise. 'es of ageing, common require fewer skills, and provide lower rates of f the wider community, pay, have little job security, tend to provide far Older workers: productivity, age workers in their 40s fewer benefits (eg no paid sick or holiday leave) performance and learning ability r decades (Encel 1998; and have fewer (and fluctuating) hours of paid Productivity ·data shows that as a group, older Studencki 2004; Pickers work (eg casual and part-time). Peripheral or sec workers have lower rates of absenteeism, have jn, Carson & Wineberg ondary sector jobs tend to provide very little fewer accidents, make fewer mistakes (eg high I 1996). While negative opportunity for career development and in many rates of accuracy), remain in the same job longer st there are nonetheless cases does not provide a pathway to core or pri (that is, lower staff turnover), have good rates of :hat these are being chal mary sector jobs. Workers in the secondary work output, and are able to learn effectively and :d, in light of people liv labour force tend to be much more expendable contribute beneficial experiential knowledge to er lives. Anecdotally, for and these workers are therefore more likely to workplaces (Encel 2003; Pickersgill et. al. 1996; tmon to hear people talk experience periods of unemployment and they Salthouse & Maurer 1996). Joe and Yoong )s are now the new 30s, also are more vulnerable to exploitative and dis (2004) note that many mature age workers pos nd 60s are the new 50s.' criminatory practices (Peetz 2005a). sess a high level of knowledge and skill that has now living healthier and Le and Miller (1999) use the term 'scarring' to been developed over time. Fellowes (2001) ng 'deficit view' percep explain the negative effects of unemployment in argues that many mature age workers have been Jeople and older workers addition to peripheral employment on a person's members of the workforce for a lengthy period L today's realities in terms employability profile (in the eyes of prospective and have learned to become resilient as a result 10tential for productivity employers). For example, unemployed workers of often painful lessons over time through the owever, social pressures tend to have a scarred profile and this intensifies stresses of a harsh corporate environment includ :rimination can result in as' the duration of unemployment increases. Scar ing decades of down-sizing and the accompany for personal development ring is conceptualised around the notion of stig ing intensification of work. pation can greatly limit matisation and accumulation of disadvantage Breadth and depth of experience have been which contribute to the marginalisation of work- identified as factors that enhance the productive

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capacities of mature age workers to deal with ticularly well equipped to deal with an increas INDUSTRIAL RELATIONS new, unusual, difficult and unexpected situa ingly older customer base with population age COST OF A FLEXIBLE W tions, well developed problem solving skills, and ing. A substantial proportion of an ability to learn and acquire new skills (Encel displaced from the labour 1998). Based on a study and review of the litera Human capital investment and returns access to the secondary lab, ture Ranzijn, Carson and Winefield (2002:9) In terms of entrenched views that older workers non-standard employment resolutely conclude that many workers within cannot be effectively retrained, the literature contracts, casual and par the older age range possess qualities that are to shows that when training has been made avail (Wooden, VandenHeuvel B their advantage: able to workers in older age groups they tend to cerns about the 'scarring' effi progress well when compared to younger age Older workers have many advantages which tor work on their employa groups (Cau-Bareille & Marquie 1998; Charness should be attractive to employers. A large body eyes of employers) may w & Bosman 1992; Hale 1990; Plett 1990). While of literature demonstrates that they are loyal, research indicates a large pre research shows that older workers can take longer reliable, and conscientious, have low turnover, do not provide pathways to train in comparison to younger workers, in are productive and hard-working, have fewer work. Rather, they entrap w terms of learning outcomes they go on to pro accidents, and are trustworthy, mature, enthu of secondary sector jobs v duce higher standards of work after completion siastic, experienced and dedicated. them vulnerable to inter (Sheen 2000). Unfortunately, lower levels of unemployment (Eardley There is a large and growing body of research involvement in training by older workers disad Muysken 2003; Wooden t that shows older workers, as a group, demon vantages many (Wooden, VandenHeuvel & discussing the tenuous natu strate superior abilities compared with their Cully 2001). tingent forms of work, Bad younger counterparts in areas related to flexibili According to Simpson, Greller and Stroh while these kinds of jobs p ty, showing initiative, task prioritisation, creative (2002), research and understanding of the experience, the nature of thinking and problem solving (Moody 1998; human capital of older workers has been influ simultaneously weakens thf Salthouse & Maurer 1996; Schulz, Bobowski & enced by a neoclassical conception of human the workplace. Hence rna: Crown 1991). However, many employers contin capital that significantly underestimates the continue to accumulate defi< ue to stereotypically perceive older workers as skills, knowledge and capacity they possess. To the degree that worker: being less alert, less adaptable to change, less Within this view, training older workers can be or stigmatised due to thei healthy, less creative and less hardworking (Encel seen as irrational because they are often perceived deficit model of work is c 2001; Encel & Studencki 2004; Patrickson to have less capacity for learning, and productivi tion is that employers wil 2003; Peetz 2005a; Ranzijn, Carson & Winefield ty, and especially when concerns exist about gent work experience fairl 2004). short tenure for returns on human capital invest worker competes for subse It has also been argued that the skills possessed ment. Research not only shows that these judg by many mature age workers are highly relevant ments about capacity are erroneous, but that in the growing knowledge and service sectors of older workers are more likely to be longer term the economy, where broader life experience and employees in comparison to their younger coun Burgess and de Ruyter work experience are advantageous (Patrickson terparts (Encel 2003; Hendricks & Hendricks large proportion of workers 1998). For example, employment opportunities 1986; Taylor & Walker 1994). nent positions were alread) in expanding service-based industries tend to be In the context of intensified future labour tions or recent graduates. T client focused with an emphasis on paying atten shortages, prudent employers and managers that workers in non-core po tion to client needs and desires, and so require should be working on training, recruitment and considered suitable for apf well developed interpersonal skills. In addition, retention policies for older workers. In contrast nent positions. as the population continues to age demographi recent research indicates a lack of awareness of Bauder (200 1) contends cally so does the composition of people who the future impact of population ageing on labour have campaigned hard for require and purchase goods and services. It is rea shortages among Australian employers and man labour force in this way in sonable to argue that older workers may be par- agers (Ranzijn, Carson & Winefield 2002). mass of secondary workers

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l to deal with ari increas INDUSTRIAL RELATIONS REFORM: THE However, it is also important to note that flexi 'ase with population age- COST OF A FLEXIBLE WORKFORCE bility in hiring and firing can have negative con A substantial proportion of mature age workers sequences for labour market capability that in displaced from the labour market can only get turn have serious impacts for industry and the estment and returns access to the secondary labour market. That is, nation generally, over the long-term. For exam I views that older workers non-standard employment such as short-term ple, Rubery and Grimshaw (2003) point out that retrained, the literature contracts, casual and part-time employment while weakened employment protection can ing has been made avail (Wooden, VandenHeuvel & Cully 2001). Con facilitate progressive down-sizing and layoffs dur :r age groups they tend to cerns about the 'scarring' effects of secondary sec ing periods of economic restructuring and down )mpared to younger age tor work on their employability profile (in the turn, it can then lead to the loss of skills that : Marquie 1998; Charness eyes of employers) may well be warranted as cannot be readily replaced in periods of econom 1990; Plett 1990). While research indicates a large proportion of these jobs ic growth and increased labour demand. This is er workers can take longer do not provide pathways into primary sector consistent with Toner's (2000) research which 1 to younger workers, in work. Rather, they entrap workers into a pattern concluded that persistent 'skill shortages' in :ames they go on to pro of secondary sector jobs while also rendering trade-based occupations in Australia dating back of work after completion them vulnerable to intermittent periods of to the 1990s are the manifestation of practices of tunately, lower levels of unemployment (Eardley 2000; Mitchell & privatisation, down-sizing and outsourcing g by older workers disad Muysken 2003; Wooden & Warren 2003). In which have led to large declines in the availabili >den, VandenHeuvel & discussing the tenuous nature of casual and con ty of apprenticeships. Senior Australian econo tingent forms of work, Barker (1998) notes that mist Matthew Hassan stated: )Son, Greller and Stroh while these kinds of jobs provide workers with The logic for business through much of the l understanding of the experience, the nature of this kind of work 1990s and early 2000s was to hold-off on r workers has been influ simultaneously weakens their perceived value in investment, cut back costs and use existing al conception of human the workplace. Hence many of these workers resources more intensively, with improvements ntly underestimates the continue to accumulate deficits. . . . flowiu"g directly through to profits. But f capacity they possess. To the degree that workers are negatively valued now the rules have changed. The cycle is at a 1ing older workers can be or stigmatised due to their contingent status, a stage where there is less scope to improve pro se they are often perceived deficit model of work is created. One implica ductivity through simple cost cutting. Produc r learning, and productivi tion is that employers will not evaluate contin tivity has stalled as businesses have run into en concerns exist about gent work experience fairly or positively when a capacity constraints in terms of both labour s on human capital invest worker competes for subsequent employment and capital resources lly shows that these judg- are erroneous, but that (Barker 1998:196). (Hassan 26 June 2006, Media Release, e likely to be longer term BIS Shrapnel). on to their younger coun Burgess and de Ruyter (2000) note that a Hendricks & Hendricks large proportion of workers appointed to perma Hassan (2006) also argued that enterprise bar . 1994). nent positions were already in permanent posi gaining would provide a more effective means for intensified future labour tions or recent graduates. This supports the view boosting productivity than individual contracts mployers and managers that workers in non-core positions tend not to be because individual contracts can lead to competi training, recruitment and considered suitable for appointment to perma tive behaviours that are destructive. He said that )lder workers. In contrast nent positions. ' ... individual contracts could undermine trust tes a lack of awareness of Bauder (2001) contends that employer groups and hurt a company's productivity' and that >pulation ageing on labour have campaigned hard for segmentation of the 'workplaces that have a high level of trust tend to ·alian employers and man labour force in this way in an effort to create a be the ones that are most productive' (cited in & Winefield 2002). mass of secondary workers for easy exploitation. Wright & Coopes, The Courier Mail, 26 June

March 2008 Volume 14, Issue 1, March 2008 JOURNAL OF MANAGEMENT & ORGANIZATION 79 Chris Kossen and Cec Pedersen Older worke1

2006:2). In reviewing literature on industrial and also as an implied admission that Work (along with many com relations reform, including data from case studies Choices was in reality unfair (Australian Finan attributable to a long run of New Zealand and Western Australia, Peetz cial Review, 4 May 2007:3; The Australian, 4 investment in education ; (2005b) and Wooden (2005) also conclude that May 2007:1; Courier Mail, 4 May 2007:1). The Billett 2005; Nohria, Joy individual bargaining is problematic for many Government has also retreated from what Work Toner 2000), an ageing ' workers in that they can foster non-cooperative place Relations Minister Joe Hockey has described tion in which there are f relationships and that individual bargaining has as the WorkChoices 'brand' because of the force entrants, and the not been as effective as collective enterprise bar impact of damaging Labor Parry and union cam towards early workforce , gaining in increasing productiviry growth. paigning (7.30 Report 17 May 2007). age workers (Patrickson The first major opinion survey research of A retreat from the term WorkChoices and Commission 2002, 2005. WorkChoices reforms found that almost 50% of associated government contact agencies/points is led to some rethinking oft the 416 business owners, chief executives and sen also evident in Government advertising since of mature age workers, < ior executive respondents felt the new legislation introducing the fairness test. New names includ emphasis by government~ will drive wages downwards. Sixry-six percent of ed 'Australia's Workplace Relations System', the the merits of employing those surveyed, including lower level employees, 'Workplace Infoline' and www.workplace.gov.au groups (Allen Consulting believed the reforms will have a negative effect on were used in an effort to re-brand policy changes 1999; House of Represent< job securiry (Australian Institute of Management and allow the government to distance itself from ity Commission 2002, 2( 2006). The survey also found 70% indicated that WorkChoices (Australian Government 2007, recent years governments they will be more selective about future employ Courier Mail, 5 May 2007:28). In distancing have begun to more se ers with a preference for large employers (over himself, newly appointed Minister for Work importance of training, re 100 staff) because of increased protc;ction against Place Relations Joe Hockey, commented 'I wasn't older workers as a key me. unfair dismissal. The consequences for small to the minister for workplace relations in the past, late organisations from ski medium-size business could be considerable if but if you're saying we got it wrong in the past, predicted to worsen cc labour shortages intensify as predicted. While well we did' (Chronicle 23 May 2007:18). Hock boomers reach retirement

Prime Minister Howard (2005) has argued these ey has explained that the government had under tiviry Commission 2002, 2 1 reforms are necessary for continued jobs growth estimated what would happen with a system that The introduction of th and higher wages overall, Wooden (2005) says could lead to workers trading away penalry rates scheme by the federal gov' there is no substantial evidence to show that without fair compensation (Crowe, Australian the removal of traditional unfair dismissal provisions (introduced in the Financial Review, 23 May 2007:3). The degree to had applied to apprentic( early 1990s) acted as a barrier to growth. which labour standards should be regulated lies at 2003) and in recent years However, in May 2007 the Howard Govern the core of the political battle over industrial rela been promoting the availa ment gave into negative public opinion tions, a highly deregulated labour market is likely mature age apprenticeshii announcing major change to WorkChoices with to increase hardship among those who are already Vocational and Technical the introduction of a 'fairness test' for workers disadvantaged with very little bargaining power in that there were about 3,50' earning less than AU$75,000 entering Australian the labour market, including many older workers. rices in training (in 2006; Workplace Agreements (AWAs). This may be However, the introduction of the fairness test 400 a decade ago, howe, seen as a restoration of the 'no disadvantage test' marks one substantial retreat in the government's reported they still remain ; which was abolished by WorkChoices reforms. efforts to drive down working standards as a mated 148,000 apprentio Previous to WorkChoices the no disadvantage means of lowering the costs of labour. Report 18 May 2006). Repo test protected workers from agreements in which gested the low uptake of m they would be worse off in comparison to condi NEW SIGNS OF EMERGING INTEREST IN ships may be due to ar tions set in relevant awards and collective work OLDER WORKERS employers that only young place agreements. This major turnaround by the It has been argued that the emergence and con apprentices. Government has been reported widely in the tinued growth of labour shortages (especially May 2006 saw the ann01 media as electoral pragmatism in an election year skilled labour) being experienced in Australia lift retirement ages in the A1

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Older workers in Australia: The myths, the realities and the battle over workforce 'flexibility'

(along with many comparable countries) is non-combat positions) in an effort to address attributable to a long running trend of reduced labour shortfalls (Blenkin, 12 May 2006, Courier investment in education and training (Smith & Mail, 22). In contrast to an apparent lack of Billett 2005; Nohria, Joyce & Roberson 2003; interest in older workers thus far by employers, Toner 2000), an ageing 'baby boomer' popula this recent development in itself may indicate tion in which there are fewer (younger) work that labour shortages are starting to force some force entrants, and the long running trend employers to re-evaluate some of their long held towards early workforce exits by many mature perceptions of mature age workers. May 2006, age workers (Patrickson 1998; Productivity also saw the Australian Treasurer, Peter Costello nd Commission 2002, 2005). Skill shortages _have also announced that he had developed superan lis led to some rethinking of the productive capacity nuation and taxation reforms designed to I tee of mature age workers, along with a growing encourage workers to remain in the workforce I td- emphasis by governments and other groups on after age 60. These changes come into effect on 1 1 he the merits of employing workers in older age July 2007, after which superannuation benefits au groups (Allen Consulting Group 2006; Bishop for those 60 years and over will no longer be ges 1999; House of Representatives 2000; Productiv classed as assessable income. The Treasurer ! )m ity Commission 2002, 2005; Sheen 2001). In explained that the Government is trying to stem I 97, recent years governments and business groups the trend towards early retirement and new a lng have begun to more seriously promote the concept of retirement which includes the option )rk importance of training, retaining and recruiting of part-time retirement combined with part-time ~n't older workers as a key means by which to insu work (Costello 2006, Treasury 9 May). I lSt, late organisations from skill shortages which are I lSt, predicted to worsen considerably as baby CONCLUSION I ck- boomers reach retirement (Encel 2003; Produc Despite a large body of evidence on the produc 'ler- tivity Commission 2002, 2005). tive value of older workers, effort spent on pro 1 hat The introduction of the new apprenticeship moting their worth research continues to show I ttes scheme by the federal government in 2001 saw that many employers have remained reluctant to '~an the removal of traditional age restrictions that employ these workers. Pressure for change is I ~to had applied to apprenticeship training (Encel expected to occur with population ageing which is I sat 2003) and in recent years the government has likely to intensify labour and skills shortages in the I ela- been promoting the availability and benefits of future. Labour market programs (eg provision of 1(ely mature age apprenticeships. The Minister for employer incentives to hire mature age workers) ~dy Vocational and Technical Education reported and other policies developed by Australian govern I . rm that there were about 3,500 mature age appren ments to increase mature age workforce participa Iers. tices in training (in 2006) compared to about tion have had quite limited success to date. 1 test 400 a decade ago, however, the 7.30 Report The trend to divest from a full-time workforce !nt's reported they still remain a fraction of the esti to minimise costs and maximise profits may well I ts a mated 148,000 apprentices in training (7.30 exacerbate future skill shortages if secondary sec Report 18 May 2006). Reporter, Scott Bevan sug tor workers continue to receive very little in the gested the low uptake of mature age apprentice way of employer supported education and train IN ships may be due to an attitude by some ing. This is consistent with research showing that employers that only young people make suitable investment in training by Australian employers is :on- apprentices. substantially less than those of many comparable lally May 2006 saw the announcement of plans to countries. In contrast, companies that are highly I·a l" 1a lift retirement ages in the Australian military (for committed to the training and development of

Volume 14, Issue 1, March 2008 JOURNAL OF MANAGEMENT & ORGANIZATION 81 Chris Kossen and Cec Pedersen Olderworkc

their whole workforce have been shown to out Skilling in Australia: Report to the Australian Australian Labour Mark Research Report No.4,, perform others over the medium and longer Industry Group, The Allen Consulting Group, Melbourne, accessed on 5 June 2007 at Printing Service, Canbe term. In the context of intensified future labour http:/ /www.aigroup.asn.au/ aigroup/ pdf/ publicati Burgess J and de Ruyter A shortages, prudent employers and managers need ons/ reports/ general_reports/World_Skills. quality in Australia: Anc to direct their efforts towards training, recruit The Australian (2007) 4 May, Howard Softens unemployment, Econom ment and retention policies for older workers as WorkChoices . p.l. Review, 11: 246-269. opposed to avoidance early redundancy. ABS (1999a) The Labour Force Australia (6203.0) Cau-Bareille D and Marqu workers, learning and jo The Australian Government recently began Canberra. ABS (1999b) Older People, Australia: A Social Report Bareille, D., Marquie, J. developing new policy to encourage workforce (4109.0) Canberra. Working with Age, Tayb participation by older workers, including the ABS (2002a) Australian Social Trends (2002) Canberra. Charnass N and Bosman E opening up of military jobs for older workers ABS (2002b) Labour Force, October 2002 (6203.0) and age, in Craik F and and the introduction of superannuation and tax Canberra. Handbook ofAgeing and Erlbaum Associates, Ne" ation reforms with genuine incentives designed Australian Government (2007) A Stronger Safety Net for Working Australians (Advertisement) Courier Chronicle (2007) 23 May, ~ to make continued workforce participation Mail, 5 May 2007 p.28. Hockey, J. p.18. including part-time employment financially Australian Financial Review (2007) 8 May, Costello P (2006) A P!dn to attractive to older workers. These reforms may WorkChoices Softened to Combat Rudd, p.1. Superannuation: Media n well make peripheral sector employment more Australian Institute of Management (AIM) (2006) Commonwealth of Austl attractive for some older workers, however, it The new workplace relations system June 2006 Courier Mail (2007) 4 May, Laws, p.1. does not augur well for many other workers in survey results, Managing the Future Survey Series: Survey 1, AIM, St Kilda. Crouch C (1998) Labor rna an environment in which 'flexible' jobs with low Barker K (1998) 'Toiling for piece-rates and policy and job creation , . standards of employment continue to expand accumulating deficits: contingent work in Higher Labor Market Institutions while full-time jobs continue to· contract. In Education', in Barker, K. & Christensen, K., Publishing Limited, Che. terms of addressing this has been argued that Contingent Work: American Employment Re!dtions Crowe D (2007) Ad blitz has Australian Financial Reviez. there is a pressing need to develop sufficient reg in Transition, Cornell University Press, New York. Bauder H (2001) 'Culture in the labor market: Eardley T (2000) Working l ulatory protection for 'flexible' non-standard segmentation theory and perspectives of place', poverty in Australia, The labour, so that benefits, standards and human Progress in Human Geography, 25 37-52. Re!dtions Review, 11 : 309· capital development opportunities that apply to Bennington L (2001) 'Age discrimination: Encel E (1998) Age discrimi full-time positions can be made available to all converging evidence from four Australian M and Hartman L (Eds), workers (Pocock 2003). However, the Australian studies', Employee Responsibilities and Rights Workforce, Business & Pre Warriewood NSW government's efforts to promote the value of journal, 13: 125-134. Bennington L and Wein R (2000) 'Anti Encel S (2003) Age Can Wor older workers and encourage of their continued discrimination legislation in Australia: fair, Australians Staying in the participation as the working population contin effective and efficient or irrelevant', International the Australian Council of ues to age, appears at odds with a neo-liberal journal ofManpower, 21: 21-33. and the Business Council agenda of labour market deregulation labour, Bishop B (1999) The National strategy for an ageing Social Policy Research Ce South Wales, Sydney. serving to make labour market participation less Australia: employment for mature age workers issues paper, Commonwealth of Australia, Canberra. Encel E and Studencki H (21 attractive for many older workers. Black D (1995) Discrimination in an equilibrium Can they succeed in the j< search model,journal ofLabor Economics, 13: journal on Ageing, 23: 33- References 309-334. Estes C (1991) The new poli1 7.30 Report (2007) 17 May; IR Continues to P!dgue Blenkin M (2006) Age-Friendly But no Dad's ageing, in Minkler M and Coalition and Labor Both, ABC Television, 7.30pm. Army, Courier Mail, 12 May, p.22. Perspectives on Ageing, Eds. 7.30 Report (2006) 18 May, Older Workers Sign Up Borland J (2004) Transitions to Retirement: A review: Estes C and Binney E (1991) for Apprenticeships, ABC Television, 7.30pm. Melbourne Institute Working Paper 3(05), of aging: Dangers and dile Access Economics (200 1) Popu!dtion Ageing and the Melbourne Institute of Applied Economic and and Estes C (Eds) Critical Economy, Commonwealth of Australia, Canberra Social Research, University of Melbourne. 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Australian Labour Market for Older Workers, Leveraging senior workers as knowledge Research Report No.4, Australian Government champions', World at Work, Fourth Quarter: 62---66. Printing Service, Canberra. Hale N ( 1990) The Older Worker: Effictive Strategies Burgess J and de Ruyter A (2000) Declining job for Management and Human Resource Development, quality in Australia: Another hidden cost of Jossey-Bass Publishers, San Francisco. unemployment, Economic and Labour Relations Harris D (1990) Sociology ofAgeing, 2nd Edn. Review, 11: 246-269. Harper & Row Publishers, New York. Cau-Bareille D and Marquie J (199 8) Ageing Hartmann L (1998) The impact of trends in workers, learning and job training, in Cau labour-force participation in Australia, in Bareille, D., Marquie,]. & Volkoff (Eds), Managing An Ageing Workforce, Patrickson M Working with Age, Taylor & Francis, London. and Hartman L (Eds) Business & Professional Charnass Nand Bosman E (1992) Human factors Publishing, Warriewood NSW and age, in Craik F and Salthouse T (Eds) The Hassan M (2006) Labour Shortages Usher in New Handbook ofAgeing and Cognition, Lawrence Era ofConstrained Growth, Media Release, BIS Erlbaum Associates, New Jersey. Shrapnel (Business Research and Forecasting), 26 Chronicle (2007) 23 May, WorkChoices Wrong June (2006. Hockey, J. p.18. Hendricks J and Hendricks D ( 1986) Aging in Mass Costello P (2006) A Plan to SimplifY and Streamline Society: Myths and Realities, 3rd Edn. Little Superannuation: Media release 042, Treasury, Brown, Boston. Commonwealth of Australia 9 May. Hiebert D (2004) Local geographies oflabor market Courier Mail (2007) 4 May, Howard Bends on Work segmentation: Montreal, Toronoto, and Vancouver, Laws, p.l. 1991, Economic Geography, 75: 338-369. Crouch C (1998) Labor market regulations, social Hooyman N andAsuman-Kiyak H (1993) Social policy and job creation , job Creation: The Role of Gerontology: A Multi-Disciplinary Perspective, Labor Market Institutions, J Gual (ed), E Elgar Allyan & Bacon, Massachusetts. Publishing Limited, Cheltenham UK. House of Representatives: Standing committee on Crowe D (2007) Ad blitz has Howard on the defensive, Employment, Education and Workplace 2000, Australian Financial Review, 23 May, p.3. Age Counts: An Inquiry into Issues Specific to Eardley T (2000) Working but poor? Low pay and Mature-age Workers, Commonwealth of Australia. poverty in Australia, The Economic and Labour Howard J (2005) (Prime Minister) Address to Relations Review, 11: 309-337. Parliament- Workplace Relations Reform, Encel E (1998) Age discrimination, in Patrickson Parliament House, Canberra, accessed at M and Hartman L (Eds), Managing An Ageing http://www. pm.gov.au/ news/ speeches/ speech 144 Workforce, Business & Professional Publishing, 6.html on 26 May 2005. Warriewood NSW Joe C and Yoong P (2004) Harnessing the Encel S (2003) Age Can Work: The Case for Older knowledge assets of older workers: A work in Australians Staying in the Workforce, A report to progress report, Conference Paper, Decision the Australian Council of Trade Unions (ACTU) Support in an Uncertain and Complex world,: and the Business Council of Australia (BCA), International Federation for Information Social Policy Research Centre, University of New Processing (IFIP), Tuscany accessed on 5 June s South Wales, Sydney. 2005 at http:/I dsslab.sims.monash.edu/ Encel E and Studencki H (2004) Older workers: DSS2004/proceedings/ pdf/38 _] oe_Yoong. pdf Can they succeed in the job market?, Australasian Landt J and Pech J (200 1) Work and Welfare in journal on Ageing, 23: 33-37. Australia: The Changing Role ofIncome Support, Estes C (1991) The new political economy of Australian Social Policy, Canberra. ageing, in Minkler M and Estes C (Eds) Critical LeA and Miller P (1999) job Quality and the Churning Perspectives on Ageing, Eds., Amityville, New York. Pool ofUnemployed, Australian Bureau of Statistics, Estes C and Binney E (1991) The biomedicalisation Occasional Paper, (6293.0.00.003), Canberra. of aging: Dangers and dilemmas', in Minkler M Mitchell Wand Muysken J (2003) Employment and Estes C (Eds) Critical Perspectives on Ageing: Dynamics and Full-time job Destruction in The Political and Moral Economy ofGrowing Old, Australia Working Paper 03-02, Centre of full Baywood Publishing, New York. employment and equity, University of Newcastle, Fellowes D (2001) 'Striking gold in a silver mine: Newcastle.

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Also, achiev Experiences, Australian Centre for Industrial Carnegie Inquiry into the Third Age, London. opment process was a , Relations Research and Teaching (ACIRRT), Van den Heuvel A (1999) Mature age workers: are Monograph 13, Sydney. they a disadvantaged group in the labour market?, Plett P (1990) Training Older workers in Australian Bulletin ofLabour, 25: 11-22. Keywords: small busine1 Industrialised Countries, International Labour Watson I, Buchanan}, Campbell I and Briggs C Office: Training Policies Branch, Geneva. (2003) Fragmented fotures: New Challenges in Pocock B (2003) The Work/life Collision, Federation Working Life, Federation Press, Annandale NSW ffective use of the lnt Press, Sydney. 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Conference of Economists, 26-28 September, tiveness, for example: han Ranzijn R, Carson E and Winefield A (2004) Barriers University of Melbourne. tronically, accessing new n to mature age re-employment: perceptions about Wooden M, Van den Heuvel A and Cully M (2001) products and services desirable work-related attributes held by job Barriers to Training for Older Workers and Possible processes more efficient a1 seekers and employers, International journal of Policy Solutions, National Institute of Labour urn for communicating th Organisational Behaviour, 8: 559-570. Studies and Curtain Consulting, Flinders Rubery J and Grimshaw D (2003) The University of South Australia. ative, dynamic and interac Organization ofEmployment: An International Wright S and Coopes A (2006) Campaign growing, distinctive advantages ov' Perspective, Palgrave MacMillian, New York. Courier Mail, 26 June p.2. fostering relationships wit! 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