United Kingdom: Manufacturers Becoming More Positive about Hiring Older Workers

A report issued by EEF, the manufacturers' organisation finds that manufacturers in the United Kingdom are adopting an increasingly positive attitude towards employing older workers in order to address the challenges posed by continued skills shortages and an ageing population. According to the report--"An Ageing Workforce--How are manufacturers preparing?" (available to registered users)--manufacturers believe older workers are a valuable part of their workforce--more productive and less likely to be absent than younger workers--and that the more physical nature of manufacturing employment is not an impediment to the employment of older workers.

Sixty percent of the companies surveyed cited "loss of specialist skills" as a significant concern. EEF also reports that manufacturing companies are adopting pro-active approaches towards the use of flexible working and managing rehabilitation: rehabilitation and return to work policies are standard in 58% of companies, rising to over 80% of firms employing 250 people or more. In addition, flexible working hours are standard in nearly two fifths of companies with half of companies employing 100 or more people having flexible working in place.

Sources: EEF, the manufacturers' organisation Media Release (April 20, 2008); The Birmingham Post "Employers outline value of experience" (April 24, 2008)

Korea: Report on Coming Skills Shortages in Manufacturing Advises Industries To Make Better Use of Older Workers

According to a an article in The Hankyoreh, the Korea Institute for Industrial Economics and Trade (KIET) has announced findings on employment policies for aging workers in South Korea’s leading companies in manufacturing industry including steel, shipbuilding and automobile suggesting that with the workforce of the nation’s manufacturing industry rapidly aging, South Korea will soon be faced with a vacuum in the manufacturing industry similar to the one experienced by Japan when that nation’s baby boom generation retired en masse.

For example, at one steel company, as sales have increased for the past three years, the amount of employees has decreased 9.7% and in the process, the average age of employees has risen to 42.1 from 40.1. At a shipbuilder, the number of department managers rose almost 10 times from 1985 to 2005, but the number of deputy managers has been cut in half, but out of the total number of the company’s manufacturing employees, the ratio of those in their 50s has increased from 16.7% in 1999 to 31.6% in 2006.

[Choi Hee-seon of the KIET] advised industries to introduce a peak salary system, in which older workers would not be forced to retire as they are now, and would be given the option of continuing to be employed with a salary decrease that inversely corresponds to their increasing age. The current system forces retirement at age 58 and offers workers an increasing salary that directly corresponds to increases in age until retirement. Choi says that using the peak salary system would allow companies to make better use of older workers. He also advised improving the work process in order to increase the productivity of middle-aged and elderly workers.

Source: The Hankyoreh "As society ages, S. Korea could face vacuum in manufacturing" (September 21, 2007)

Maine: Paper Industry Facing Aging Workforce

According to a story by Colin Hickey for the Kennebec, Maine, Morning Sentinel, paper company executives are losing sleep contemplating that the industry--the largest manufacturing sector in Maine--will have 2,200 workers turn 63 within the next 10 years. "They know paper does not get produced without skilled people."

Unlike some other industries that may be facing such issues, the paper industry's problems are compounded because of perceptions that it is a dying industry:

[Mike] Barden of the Pulp & Paper Association acknowledges that this is the central question the industry faces.

"It is still that public perception (of a dying industry)," he said. "It is trying to overcome that. The reality is I just don't see the industry going away. I think there will always be an industry here."

Bill Cohen of Verso Paper, which has mills in Bucksport and Jay, confirms that the paper industry faces a labor challenge.

"It is harder to recruit, because of the perception that it is a dying industry," he said. "That is one thing we have to overcome. We are not dying; we are continuing to reshape."

Hickey reports on efforts by the industry to raise enrollments in Maine programs that are the principle sources for new recruits.

Source: Kennebec Morning Sentinel "Graying workforce a problem for paper industry" (July 15, 2007)

Manufacturing: Coping with Replacing Older Workers in Jobs Younger Workers Don't Want

An article in Manufacturing US focuses on how young people are steering clear of manufacturing just at the time that manufacturers are experiencing a moderate to severe shortage of skilled production employees, including machinists, distributors and technicians. One problem may be an image one:

“Dirty, dark, dangerous, and dull,” says Director of Operations Leo Reddy of the Manufacturing Skill Standards Council (MSSC). MSSC is the nationwide, industry-led organization focused on the core knowledge and skills needed by US production workers. “There’s definitely a concern among educators in attracting young people into manufacturing, a negative perception we have to improve,” says Reddy.

Thus, many manufacturers try to appeal to younger workers by focusing on the "cool" products they produce or the tools that they use to produce them. "If all else fails, then manufacturers appeal to the rewards of a steady career in manufacturing." MSSC and the National Association of Manufacturers are trying close the employment gap and in September 2006 launched the U.S.’s first effort to establish nationally-recognized credentials for qualified manufacturing production workers.

Source: Manufacturing US "Dirty, dark, dangerous, and dull" (November 2006)

Rhode Island: Focus on Aging Workforce in Manufacturing

As part of a Focus issue on baby boomers, the Providence Business News published two articles by on workforce and the aging. The first, by Natalie Myers, focuses on manufacturing companies trying to fill the holes created by today’s retirees. The second, by Nicole Dionne, focuses on how the employment needs of the baby boom cohort are being taken very seriously in the workplace.

According to Myers, in manufacturing, it takes a substantial amount of time to teach the skills the retirees have spent 10 to 20 years learning themselves. She focused on one company--Handy & Harman--where about 30% of the workers are older than 55 and the average age is 47. She reports that Handy & Harman invests heavily in its on-the-job training program and, to help supplement training costs, seeks grants from state and federally funded organizations such as the Workforce Partnership of Greater Rhode Island. In addition, she reports that companies have to balance the need for new trainees with the need to implement lean manufacturing principles, to cut production costs and stay competitive.

According to Dionne, 23% of Rhode Island’s work force is 55 and older.

“This is a group that is a great resource, particularly now,” said Kathy Partington, chief of work force development for the R.I. Department of Labor and Training. “They have a lot of skills that can be transferred to different jobs."

The biggest barriers faced by older workers are salaries and the perception of employers who feel that they should get younger workers with more cutting-edge skills. In order to counter those barriers, the state training department works to get employers to see the value of older employees.

Source: Providence Business News "Factories toil to replace retirees" and "Older workers offer employers challenges, rewards" (November 18, 2006)