BT refuses to hold off implementing disputed 'default retirement age'
10th February 2010
The first 'enforced' retirements are now looming nearly
five years after BT abandoned its "normal retirement age"
of 60. Despite concerted CWU requests for the company to hold off
applying the "default retirement age" of 65 pending the
outcome of an imminent Government review, BT has insisted that it
is going ahead despite the union's position.
Uniquely in Europe, the British Government included the facility
for companies to compulsorily retire people at 65 as part of the
UK's Age Discrimination legislation.
That decision was the subject of a major legal challenge which,
while lost, is still a political hot potato - the controversy being
stoked by the Government's subsequent announcement of a
staggered rise in the state pension retirement age from 65 to 67.
Political pressure for a review of the default retirement age has
further been raised by the Conservative Party's current
proposals to speed up the transition to a state retirement age of
67. If the default retirement age stays at 65, that would raise the
possibility of many pensioners facing considerable hardship as a
result of being compulsorily retired by their employers up to two
years before they can claim a state pension.
Despite the fact that the Age Concern-led legal challenge against
the UK's default retirement age has so far been unsuccessful,
the most recent judgement from the UK High Court contained a
silver-lining for campaigners.
That came in a ruling from the judge who, while upholding the
technical legality of compulsory retirement at 65 at present,
indicated that had the same case been lodged today - rather than
several years ago - he may have come to a different conclusion.
Assistant secretary Colin O'Callaghan
explains: "The big difference between now and the time when
the case in question first entered the courts is that now the
Government has set out on a course that will see a staggered rise
in the state retirement age.
"The judge indicated that the fact that a gap will open up
between the default retirement age of 65 and a forthcoming state
retirement age of 67 could well have been an important
consideration had that been apparent when the case was initially
brought.
"Disquiet over that gap is only likely to intensity given the
Tories' plan to bring forward that staggered transition -
something which is bound to be an important issue in the
forthcoming General Election."
In recent weeks debate over the issue has already stepped up,
triggered by comments made by deputy Labour leader Harriet Harman
at an Age UK event in which she said she wanted to see a
"massive public policy change" that would make it easier
for older people to carry on working.
A Government review of the default retirement age had already been scheduled for 2011 - but that now looks set to be brought forward and indeed could begin imminently.
Yet, despite the looming review, BT (along with a number of other large employers) is resolutely sticking by its plans to enact the default retirement age of 65 policy it adopted at the time of dropping the "fixed" retirement age of 60.
"That means we're about to have our first batch of 64-year-olds coming up against this policy over the next few months," explains Colin.
"With Harriet Harman publicly indicating that a major review is being brought forward and will talk place pretty imminently, we've been saying to the company 'why not wait and see what happens?'
"Despite the fact that the union's arguments have been knocked back, an appeals procedure has been agreed with the company for members who are just approaching 65 who want to carry on working pending the outcome of the Government's review."
Colin continues: "The company has stated that its current resourcing profile does not allow it to delay consideration of the default retirement age - but the union's position is very clear that anyone not wanting to be retired at 65 should invoke the appeals procedure in the full knowledge that they have the right to be accompanied by a union rep.
"BT has given assurances that it will treat each case on its merits, in compliance with Age Discrimination legislation - and the union has drawn up a model letter to help those wishing to stay on after 65 to request a continuation of employment."
Further information and the model letter are contained in Letter To Branches (LTB) number 114/2010 in the members' only section of the CWU website.
