Ministers’ plan to target over-55s for redundancy branded ‘stupid’

Ministers’ plan to target over-55s for redundancy branded ‘stupid’

Senator Sarah Ferguson criticised the inclusion of the policy in plans to cut more than £10m next year from what the government spends on its workforce and warned that the organisation risked losing its ‘corporate memory’ if it gets rid of too many older members of staff. She was speaking at a hearing of the Government Plan Review Panel, of which she is a member, at which Chief Minister John Le Fondré was giving evidence.

A report detailing how ministers plan to save £40m next year as part of the Government Plan proposals was released last week and stated that targeting over-55s – who make up 22% of staff – was one measure proposed to cut workforce costs. Other proposals include cracking down on avoidable overtime, better management of sickness and reducing the reliance on agency and fixed-term staff.

‘Efficiencies can be achieved by identifying and encouraging those who are likely to leave the organisation to do so, either through retirement or voluntary redundancy. The role can then be analysed and assessed as to whether it should be replaced,’ the report states.

At Tuesday’s hearing Senator Ferguson questioned the logic of the proposal. She said: ‘Are you throwing out over-55s? I have never heard anything so stupid in all my life. The Midland Bank had to be taken over by HSBC because they got rid of all their oldies.’

Senator Le Fondré responded that they would not be ‘throwing out’ over-55s.

Mark Grimley, group director of people and corporate services, then told the panel: ‘It is around how we support people taking decisions, it is also looking at the future workforce that we need. One of the things we haven’t been very good at is flexible retirement, it is not about losing our corporate memory – we are being much more flexible for people at the end of their careers.

‘One of the conversations we had last week with senior managers was very much how do we retain that corporate memory.’

Panel member Deputy Kirsten Morel then questioned why those aged 55 were considered as ‘at the end of their careers’, adding they have a ‘good 12 years’ before they reach retirement age.

Senator Ferguson – the chairwoman of Age Concern Jersey – added: ‘I am absolutely appalled at this particular type of attitude. I look down the line there [pointing at the politicians and civil servants giving evidence to the panel] and there are at least three of you knocking on for 55 and if I look in the States there are plenty of us over 55. There are a lot of over-55s in the Island who are doing very useful jobs and you are about to throw them out onto the rubbish heap – it is not good enough.’

Mr Grimley replied: ‘We are not looking at redundancies or forcing them to go. Fifty-five is an age when some people will start to think about their financial options, accepting that it is not the end of their careers.

‘Some people may choose to work up to retirement, some people may choose to do a different type of work. This is about allowing individuals as well as the government to better plan forward.’

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