For many of us, retirement is something we’ve looked forward to, strived for and planned for. But wait! Things have changed in Ontario. Mandatory retirement, well, just isn’t mandatory anymore. Many of us instead of retiring automatically on our 65th birthday, are faced with a choice: To retire or not to retire? Evidently, many of Ontario’s older workers are choosing the latter, and opting to stay in the workforce. While retirement parties are being postponed across the province, workplaces are having to adapt to the graying of Ontario’s workforce.
The times changed when Bill 211 came into effect on December 12, 2006. Since then, employers can no longer require employees to retire when they turn 65.
Older workers are not more accident prone than their younger colleagues. However, when accidents involving older workers do occur, they tend to be more serious. Eyesight, hearing, balance and the ability to handle stress all change as we age. What follows is a breakdown of changes that can be implemented to ensure that the workplace meets the needs the older workforce.
“…the Ontario Human Rights Code protects all persons aged 18 and over against discrimination in employment on the basis of their age. This means that employers cannot make decisions about hiring, promotion, training opportunities or termination on the basis of an employee’s age. Prior to this date the Code did not prohibit age discrimination in employment against persons aged 65 or older… This does not mean that employers cannot have retirement programs based on a certain age. Rather it means that such programs cannot be mandatory….”
Employers and employees should be aware that Bill 211 did not automatically extend the benefit plan coverage nor were the provisions of age-based distinctions under the Workplace Safety Insurance Act changed with the passage of the Bill:
“…The provision of medical, dental, disability and insurance benefits to employees aged 65 and older will remain at the discretion of the employers. Similarly, age-based distinctions under the Workplace Safety and Insurance Act are shielded from scrutiny under the Code.”
(Source: The End of Mandatory Retirement - Ontario Human Rights Commission - www.ohrc.on.ca/en/resources/factsheets/endmandatoryretirement)
Retirement is a relatively new concept in Ontario, dating back to 1927 when the first old-age pension was introduced. In that year, Canadians aged 70 years and older, after an invasive means test, received a pension of $20 per month for a grand total of $240 per year. It was not until 1965 that the Canadian pension became universal for all Canadians 65 years and older. Many employment contracts and private pensions have been linked to the Canadian pension over the ensuing 40 years. In many employment contracts that link meant that age 65 was the de facto magic number for mandatory retirement. As of December 12, 2006 that link has been cut.
While the average age of retirement is three years younger than 65, the average life expectancy is 20 years longer, and many who once dreamed of sleeping in until noon are beginning to rethink retirement. According to a 2004 Statistics Canada survey, 20% of Canadians surveyed said that they do not intend to retire at all.
The reasons people choose to work beyond 65 are as varied as the individual. However, there tend to be two major deciding factors: job satisfaction and economic need. Ontarians without a private pension plan—or the $500,000 socked away in RRSPs suggested by financial pundits—are finding that the $15,000 per year in the Canada Pension Plan is not enough. These people are opting to continue working past the age of retirement, either through part-time work or self-employment, as a means of supplementing their income.
While righting a human rights wrong was a key factor in the ending of mandatory retirement, so too is the reality of a demographic surge known as the baby boom. Baby boomers, or those of us born between 1945 and 1964, are rapidly becoming the elder boomers, with the vanguard already in their early 60s. Canada cannot afford either financially or in terms of loss of expertise, to encourage the boomers to retire en masse.
The potential impact is illustrated in Statistics Canada data: In 2006, close to 40% of Canada’s workforce was between the ages of 45 and 65. By 2026, 21.2% of Canada’s population will be over the age of 65.
With Canadians living an average of 20 years longer than their grandparents, and a growing percentage opting to work beyond the age of 65, it’s up to the Canadian employer to reflect the change in demographics in their workplace by providing appropriate health and safety training and equipment.
Bob Dylan’s anthem of the 1960s has taken on a new meaning in Ontario: The times they are a-changin’. Today, the elder rebellion is underway and employers are looking for ways to retain their trained, skilled workers for as long as possible by creating a healthy safe environment that adapts to meet their changing physical needs.
Of the 100,000 Ontarians who reach 65 every year, a much smaller number—only 4,000 or 4%—are predicted to take advantage of the changes brought about by Bill 211, according to Belinda Satton, spokeswoman for the Ministry of Labour.
The automotive service sector is facing a potential “demographic bomb” over the next 10 years. Fifty per cent of workers in the automotive repair and service are older than age 40. Of this, 44% are older than 45 and only 6.4% of the workers fall between the ages of 20 to 25 years. With the current average age of retirement at 57.4 years, the automotive sector faces a serious employment crunch within the next decade.
However, many workers approaching retirement indicate that they would consider staying in the workforce if the dynamics of the work arrangement were adapted to meet their changing needs. According to Statistics Canada, 28% of people who retired between 1992 and 2002 would have continued working in a part-time capacity, 27% if their health had been better, and 21% if their salary had been increased.
Currently, only 4% of employers say that they actively target older workers for promotion or to fill vacant positions. With the baby boom generation reaching retirement age, employers need to change their recruitment focus to include the growing senior population.
The service sector is not only the largest, but also the fastest growing component of Ontario’s economy. It is vital for the economic health of the Province that the service sector not only maintain, but attract, older workers. Surveys provide an insight into how to accomplish this. One of the constant demands by older workers is flexibility.
They want the freedom to enjoy their “golden years” with an income safety net beyond their pension. As has always been the case, from Howdie Doodie to the mini-van, the baby boomers have the demographic muscle to get what they want. The service sector as Ontario’s largest employer must adapt to meet this new reality.
Sources:
Occupational Health & Safety, Accommodating the Aging Workforce, by Nordahl Flakstad, September 2006
Statistics Canada, ‘The Daily’, Study: Retaining Older Workers, October 26, 2004, www.statscan.ca
Statistics Canada, ‘The Daily’, Study: Seniors at Work: An Update, February 25, 2004, www.statscan.ca
Statistics Canada, ‘The Daily’, Study: New Frontiers of Research on Retirement, March 27/06. www.statscan.ca
Statistics Canada, Canadian Economic Observer, Research and Development in Canada’s service sector, January, 2004, vol. 17 no.01, www.statscan.ca
Canadian Centre for Occupational Health & Safety, Older, Wiser, and Taking Over the Workforce, Volume 3, Issue 7, July 2005
Canadian Centre for Occupational Health & Safety, Keeping Older Workers Well, by Jennifer Brown, September 2005
Canadian Centre for Occupational Health & Safety, OSH Answers, Aging Workers, July 12, 2003
The Safety Mosaic, An Aging Workplace, OSSA Newsletter, Dec, 16/02. www.ossa.com
Government of Canada, Overview of the Aging Workforce Challenges Analysis, www.hrsdc.gc.ca
CBC News Online, Boomers to reshape what it means to be a senior: StatsCan, www.cbc.ca
CBC News Online, Retiring mandatory retirement, December 9, 2005, www.cbc.ca
The Alliance of Sector Councils, The Aging Workforce and Human Resources Development Implications For Sector Councils. By R. A Malatest & Associates Ltd., February 2003.
Bill 211 (Chapter 20 Statutes of Ontario 2005) An Act to amend the Human Right Code and certain other acts to end mandatory retirement, The Hon. S. Peters Minister of Labour. 2nd Session of the 38th Legislature, Ontario 54 Elizabeth II, 2005)
Excerpted from Safety Mosaic, Volume 10, No. 2, Summer 2007
You can consult your industry/sector professional association for input and advice when purchasing equipment and supplies.
