Effect given to the recommendations of the committee and the Governing Body - Report No 340, March 2006

Case No 2171 (Sweden) - Complaint date: 20-NOV-01 - Closed

Effect given to the recommendations of the Committee and the Governing Body

1. 215. At its June 2005 session, the Committee examined this case, which concerns a statutory amendment enabling workers to remain employed until the age of 67 and prohibiting negotiated clauses on compulsory early retirement. Pointing out that the complaint was filed in November 2001, the Committee reiterated its previous requests that the Government take remedial measures and hoped that a negotiated solution would be found in the near future. The Committee also requested the Government to keep it informed of developments in this matter, including the results of any meetings held with social partners [see 337th Report, para. 158].
2. 216. In a communication dated 17 October 2005, the Government underlined that the matter in question is of considerable political and legal complexity. The new old-age pension system was preceded by a long political process and is the outcome of negotiations between five of the political parties in parliament. The new pension system can largely be characterized as a defined contribution system. The financing of this system is designed with regard to future demographic and economic trends. Increased participation of the labour force broadens the contribution base and contributes to the strengthening of this basically income-related pension system. According to the Government, financial stability is an important cornerstone of the system by avoiding an excessive financial burden to be placed on generations to come, and, thus, contributing to solidarity between generations. Moreover, the close link between the contributions made to the system and pensions entitlements is one way of ensuring fair treatment of individuals, making it possible for a person with a longer work record to receive a higher pension than a person with a shorter work record. The amendment to the Employment Protection Act that establishes an individual right to work beyond the age of 65 should be viewed in relation to this overall economic and social context.
3. 217. The Government further stressed that there are several legal difficulties arising in the process of trying to reinstate a previous invalid collective agreement into force. An abrogation of the transitional provision, which invalidates provisions restricting the employees right to remain employed until the age of 67 in collective agreements concluded before 1 September 2001, may lead to negative economic and personal consequences for the individual worker. The worker’s possibility to improve his or her financial situation, by working until the age of 67, would be restricted if this right was abrogated and he or she was obliged to retire at an early age.
4. 218. Finally, the Government provided information regarding a survey they have administered, indicating that today, there are only a few collective agreements which were concluded before September 2001 that contain provisions restricting the employees’ right to remain employed until the age of 67. It is even possible that all such collective bargaining agreements have expired, and that only a few – if any – provisions in collective bargaining agreements are invalidated by the transitional provision. The Government adds that it has not been possible to reach a satisfactory solution during the meetings with social partners.
5. 219. The Committee notes this information. The Committee requests the Government to provide precise information on how many collective agreements contain provisions that are abrogated by the transitional provision and how many of the concerned agreements have expired. When noting that the Government has indicated that it had not been possible to find a satisfactory solution during the meetings with social partners, the Committee regrets that the Government has not provided any specific information on the measures taken in this regard (date and number of meetings held, social partners involved, views expressed, etc.). Recalling its previous recommendations and that more than four years have elapsed since the filing of this complaint, the Committee strongly urges the Government to take all the necessary measures in order to ensure that a negotiated solution with the social partners will be agreed in the very near future.