How Has the Aging of US Population Affected Labor Relations - Essay Example

? Aging American Population Aging American Population Although the American labor force is not the fastest aging in the world, it is doing so at a considerable rate (Czaja & Sharit, 2010). While there are many factors contributing to the aging of the labor force, the most notable one is the post World War II generation, popularly referred to as the baby boomers. This generation caused a population explosion that has resulted in the present day aging group of the labor force in the United States. A significant number of this group of citizens, most of who were born between the years 1946 and 1964, was expected to start turning 65 years old in the year 2011. Records show that they are in excess of 70 million people, and the figure is set to grow in the next two decades (Rocco & Thijssen, 2006). This aging population has an effect on many aspects of the United States as a nation including labor, economy and society (Fossum, 2012). This paper will describe how the aging population has affected the relations between labor and management in the United States. The most significant effect of the aging population on the relations between labor and management is the flexibility in rules, terms and conditions applied to the older workers (Fossum, 2012). Although a few of the rules, terms and conditions may be to the disadvantage of the older working population, most of them were modeled and work in their favor (Eyster, Johnson & Toder, 2008). In most organizations, the management teams have realized that if all their older workers retired at the same time, the company would plunge into significant and detrimental intellectual capital loss. This would further be compounded by the loss of social capital associated with professional relationships. To this end, relationships between management and labor are being modeled towards retaining, or even employing, the older population (Eyster, Johnson & Toder, 2008). Research has shown that 40 percent of the American workforce comprises of persons aged 45 years and above, and most of them are willing to opt for late retirement. However, they also want to be accorded a level of control and choice over their employment contract, working hours, schedules of work and even options for responsibilities and jobs (Eyster, Johnson & Toder, 2008). With their large numbers, postponed retirements will have significant impacts on their relations with management. Employers and management teams have taken innovative initiatives to design and promote positive employment relationships and experiences for the older labor force (Fossum, 2012). This has been achieved by developing a range of approaches that engage the ageing labor force at the work place and offers them different choices of work arrangements while simultaneously supporting work effectiveness and reflecting their preferences. A relationship between labor and management that allows the older labor force options to select different responsibility sets and jobs has also been developed (Eyster, Johnson & Toder, 2008). Different groups of ageing workers feel the need to dedicate their later professional years to careers that are either less demanding or build new competencies. The flexibility allowed by such relations enables them to make transitions to different fields or positions in the company. Within the same agreement, the moves will mostly result in a decrease in wages (Eyster, Johnson & Toder, 2008). Examples of these arrangements include part time positions in later stages of older employees, phased retirement and shared jobs. The older employees are allowed by management to reduce their commitment to work in preparation for retirement as an apprentice gradually takes over (Eyster, Johnson & Toder, 2008). The management also reckons the older employees as mentors to the apprentices. The management is also obliged by federal law to uphold the rights and interests of the older workforce. The management will not decline to hire or terminate the services of older workers with respect to their conditions, compensation, employment privileges or terms. In the United States, rather than freeing the labor market in order to enable older people get employment, the government has legalized a ban on age based discriminations in employment (Czaja & Sharit, 2010). This has affected the relation between labor and management, because by making it difficult to fire older people, it equally makes them difficult to hire. Therefore, both parties need to settle on collective bargaining based on mutually satisfying each other’s needs. Whereby the older population has gained skills and experience throughout their working years, the tax system is harsher on them than on the younger workforce. However, most are ready to continue working till they attain the age that qualifies for Social Security and Medicare (Rocco & Thijssen, 2006). They also opt to keep working in order to maintain the employers’ health schemes. In this respect, they must, therefore, agree to their wages being based on their worth to organizations instead of placing the wages on top of the careers. This means the management will offer relatively reduced wages (Rocco & Thijssen, 2006). In conclusion, with the illegalizing of discriminating against age in employment by federal law, the United States economy needs to gain from the experience and skills of the older labor force (Czaja & Sharit, 2010). A larger number of organizations have found it necessary to take up age management strategies and policies. They have redesigned their career paths to align them with the preferences held by some of their older labor force. Some have implemented and sponsored training with emphasis on lifelong learning to help older workers develop flexibility in jobs (Rappaport & Stevenson, 2004). Most of the labor force managements are changing attitudes as the labor force ages, as they appreciate the fact that the older generation has fewer cases of absenteeism and lateness. By agreement between labor, management and even unions, the older labor force clocks less hours per day and fewer days per week in comparison to the younger generation (Rappaport & Stevenson, 2004). This incentive has enabled the management to retain a pool of skills and experience that keeps business running. The management values the services of such employees especially in cases where clients view age as a symbol of experience. This move will alleviate a looming labor and experience vacuum should the baby boomers choose to retire early (Rappaport & Stevenson, 2004). . References Czaja, S. J., & Sharit, J. (2010). Aging and work: Issues and implications in a changing landscape. Maryland: Johns Hopkins University Press. Eyster, L., Johnson, R., & Toder, E. (2008). Current strategies to employ and retain older workers. Washington: Urban Institute. Fossum, J. A. (2012). Labor relations: Development, structure, processes. New York: McGraw. Rappaport, A., & Stevenson, M. (2004). Staying ahead of the curve 2004: Employer best practices for mature workers. Washington: AARP. Rocco, T., & Thijssen, J. (2006). Older workers, new directions: employment and development in an ageing labour market. Miami: Center for Labor Research and Studies. Read More