Parliamentary Committees

PARLIAMENTARY COMMITTEE ON OCCUPATIONAL SAFETY, REHABILITATION AND COMPENSATION: SOUTH AUSTRALIA'S AGEING WORKFORCE

The Hon. G.A. KANDELAARS (16:00): I move:

That the briefing report of the Occupational Safety, Rehabilitation and Compensation Committee into South Australia's Ageing Workforce: Implications for Work Health and Safety, Rehabilitation and Compensation be noted.

The Occupational Safety, Rehabilitation and Compensation Committee has not completed a report into the ageing workforce but did take an opportunity to meet with the Age Discrimination Commissioner, the Hon. Susan Ryan AO, whilst she was in Adelaide in May 2012. The committee has also undertaken comprehensive research to identify emerging issues associated with changing workforce dynamics and skills retention issues.

Encouraging people to stay in the workforce longer is now a national priority. The global financial crisis has also kept many people working past their planned retirement date so they could recoup financial losses that occurred as a result of the GFC. Remaining in the workforce for longer is the most effective way for older Australians to improve their standard of living, many of whom would otherwise retire on the age pension and be vulnerable to poverty.

The commissioner provided the committee with an overview of the work occurring at a commonwealth level to reduce the structural barriers to mature-age workers continuing in the workforce. She advised the committee that there are about two million people in Australia over the age of 55 years who are not working but would like to work if work were available.

The Australian Law Reform Commission has been inquiring into the legal barriers that discourage mature-age workers from continuing in the workforce for as long as they would like and has made a number of proposals to eliminate these barriers wherever possible. South Australia has one of the highest concentrations of older people, and labour participation rates are predicted to fall over the coming years. Against this backdrop there is an increased interest by mature-age workers to remain in the workforce for longer, but many may have to look for more flexible work arrangements for myriad reasons, such as to cope with caring responsibilities or because of disability.

Australia has a skills shortage, and in order to meet the skills demands of the workforce Australian workers will be in demand for longer periods throughout their life cycle. As Australians live longer and healthier lives they will be more inclined to remain in the workforce longer to meet financial and/or personal objectives. Mature-age workers who remain in the workforce longer are able to accrue more superannuation and there are also significant mental and physical health benefits in remaining in the workforce.

There are numerous benefits for employers who develop age management strategies that are not only for the benefit of older workers but also have benefits for younger workers. Many European employers, and some Australian employers, have invested in a life course approach to age management that ensures that all workers maintain their health and wellbeing and continue to work for as long as possible. These approaches have a positive impact on workforce participation and economic development.

The committee heard from the commissioner that there are significant social barriers that impact on older workers who wish to continue to work and who wish to enter the workforce, either for the first time or after a break. She informed the committee that the rate of complaints about age discrimination was increasing. The Financial Services Council found that 18 per cent of people over the age of 45 complained that they could not get work because they were considered too old. This is a shocking indictment on our society.

The committee was interested in the work health and safety and workers compensation arrangements for mature-age workers, and it noted that both Western Australia and Queensland have removed age barriers to workers compensation and that the commonwealth workers compensation legislation is currently under review. The review of the commonwealth workers compensation legislation will examine a number of areas, including the impact of the changing retirement provisions on the scheme.

In South Australia, injured workers are entitled to rehabilitation and return-to-work plan only if they are in receipt of income maintenance, which is not payable once a worker reaches retirement age. This is a method of forcing retirement onto workers who may have planned to work longer than the Centrelink retirement provisions. Only about 17 per cent of retired people receive personal income from superannuation, dividends or other sources, while 80 per cent are drawing either a full or part pension.

The commissioner pointed out to the committee that the retirement decisions are made not just on personal health, physical ability or caring responsibilities but also on people's proposed financial security. Forcing people onto the age pension following a work injury, or many women who have not been able to secure their financial future due to child-rearing responsibilities, may mean that they are vulnerable to poverty.

This arrangement not only is costly to the Australian taxpayer but also prevents these workers from continuing to be productive members of society, prevents them from continuing to contribute to superannuation, and prevents them from improving their living standards through paid employment. The economic implications for South Australia, due to the loss of otherwise productive workers, may also be significant, as insufficient young people participate in some areas of critical employment.

A basic premise in the Australian Work Health and Safety Strategy 2012-20 is that all workers have a fundamental right to be free from the risk of work-related death, injury and illness. Employers need to ensure that workplaces are safe for all workers, including those of mature age. Whilst there is no specific reference to mature-age workers in the work health and safety legislation, any improvement made to work processes or practices that benefits mature-age workers will benefit all workers.

For those who are concerned about the financial blowout in workers compensation schemes, the Australian Bureau of Statistics found that most injuries were sustained by workers in the 40 to 49 age group, and this is confirmed by WorkCover statistics. The injury rate in the 60-plus age range is less than 1 per cent.

Removing barriers to mature-age workers to enable them to work into their 70s and beyond will require the removal of structural barriers, but there is also a need to change the negative perceptions and stereotypes about older people. Older Australians are entitled to the same rights as the rest of the working population, and changing the law to enable them to remain productive will go a long way to ensuring that this occurs. Employers who invest in a proactive and sustainable work health and safety system, as well as workforce planning and development, focusing on workers across the life cycle, will maximise productivity and prevent decline due to the ageing process.

The committee recommends that further work is required to address issues associated with an ageing workforce with the resultant changes in the workforce requirement and skills retention issues. I express my thanks to members of the committee for their contribution and deliberation, as well as committee staff who contributed to the preparation of this briefing report, executive officers Ms Carren Walker and Ms Sue Sedivy, and research officer Dr Leah Skrzypiec. I also thank the Hon. Susan Ryan for her attendance at the committee and for WorkCover's assistance in providing statistical and research reports that assisted the committee in its deliberations.

Debate adjourned on motion of Hon. T.J. Stephens.