CBI SAYS GOVERNMENT SETTLEMENT ON RETIREMENT AGES IS "SENSIBLE AND PRAGMATIC"
The CBI today (Tuesday) described the government's decision on retirement ages as "sensible and pragmatic".
Ministers will allow employers to set a retirement age at 65, while giving employees "a right to request" that they continue beyond this point. Firms will have to give business reasons to justify refusing a request, helping to stamp out unfair age discrimination.
John Cridland, CBI Deputy Director-General, said "This is a sensible and pragmatic decision.
"It means people can ask to work beyond 65 and they will be able to do so unless there is a good business reason why not. This will be a big change from the status quo because contractual retirement ages below 65 will now have to go.
"But it also means there is a clear cut-off point to employment, which is important if you don't want to embitter the retirement process and trigger an explosion of tribunal claims. Neither employers or employees want people to work forever."
He added: "The UK is not going out on a limb by implementing the EU directive in this way. France, Italy, Ireland and the Netherlands have come to a similar view. They have outlawed discrimination but maintained a cut-off point to employment.
"We accept that people are living longer and are likely to work longer in decades to come. The government is right to keep this issue under review for the longer term."
14 December, 2004
Notes to Editors:The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce.
Member companies, which decide all policy positions, include:
- 80 of the FTSE 100
- some 200,000 small and medium-size firms
- more than 20,000 manufacturers
- over 150 sectoral associations.
No other UK organisation represents as many major employers, small and medium-size firms or companies in the manufacturing or service sectors.
The CBI's broad-based membership gives it unrivalled influence with the UK government. The organisation is also the UK's official business representative in the European Union, which generates more than 50 per cent of regulation affecting British firms.
With offices across the UK as well as in London, Brussels and Washington, the CBI coordinates British business representation around the world.
Media Contact:CBI press office on 0207 3958239 or out of hours page 076 26809070
Please note that the CBI press office out-of-hours pager number will change on 15 December 2004. From this date the number will be: 07623 977854.