Press Release No. 39/2010 IG Metall Calls for a Suspension of the “Retirement at 67” Plan

Frankfurt am Main – IG Metall has called for the suspension of the “retirement at 67” plan and a strategy for a flexible transition to retirement. The union rejects the conclusion drawn from the report by the Federal Minister of Labor to raise the retirement age. In a letter from IG Metall Chairman Berthold Huber and IG Metall social policy expert Hans-Jürgen Urban to Labor Minister Ursula von der Leyen, they state: “We draw different conclusions: The increase in the standard retirement age will be suspended. Instead, a concept for a flexible transition to retirement will be developed, in which workplace stress and the duration of contributions to the statutory pension insurance system play an important role.” IG Metall is prepared to cooperate constructively on such a concept.

In IG Metall’s view, the attempt to address the shortage of skilled workers by raising the retirement age to 67 is misguided. “Raising the standard retirement age will only provide temporary relief for two years, but it cannot meet the demand for skilled workers. To do so, a significant increase in women’s labor force participation across all age groups, an increase in the employment rate of all workers between the ages of 50 and 60, and, above all, greater investment in education and training would be necessary,” the letter states.

IG Metall does not, however, dispute the figures cited in the report regarding the employment of older workers. For example, in 2009, 995,000 people between the ages of 60 and 65 were employed in jobs subject to social security contributions. However, 334,000 of them were in atypical employment arrangements; and 195,000 of these atypically employed workers were, in fact, only marginally employed. “This means that only 15.3 percent of people aged 60 to 65 are in regular employment subject to social security contributions. This is certainly not a source of pride, nor is it a reason to celebrate.”

Finally, Huber and Urban criticize the fact that raising the standard retirement age robs people of one-third of their healthy retirement years. The report points out that, on average, men live another 6.2 years and women another 6.6 years without permanent health limitations. “This means that raising the standard retirement age by two years robs people of one-third of their healthy years in retirement. We consider this to be indecent,” reads the accusation in the union representatives’ letter.