Germany reduces retirement age to create more jobs PRESS TRUST OF INDIA
BERLIN, JANUARU 10: Germany has adopted a strategy to fight unemployment by redistributing existing jobs following a compromise tripartite deal allowing Germans to retire before the age of 65 as a way of creating jobs for young workers. The agreement yesterday among the Government, trade unions and employers under the aegis of Chancellor Gerhard Schroeder's ambitious `Alliance for Jobs' roundtable talks also provides for low national wage increases in exchange for the possibility of early retirement. The tripartite deal described by Schroeder as an "important breakthrough" does not explicitly support Union calls for retirement at 60 but does not not rule it out either even as the Chancellor said there would not be a sweeping law to shorten worklife for all Germans. Schroeder said the agreement was "the only way to reduce unemployment in Germany". Ig Metall, German's biggest Union with three million members, hailed the agreement as giving "us the green light to go ahead and negotiate a retirement at 60 plan." Ig Metall has been pushing for an early retirement plan for months and its tough stand was largely responsible for the failure of Schroeder's main campaign pledge of job talks making any real progress. Employers have long rejected Union demands for early retirement because of an immediate additional financial burden. According to Schroeder, the agreement was a "truly good signal" for the economy, for companies and also for the fight against unemployment. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.