The case of Opel Antwerp re-ignites the debate on pre-pensions in Belgium

The Flemish Employers’ organization (Voka) and the Federation of Belgian Businesses (FEB/VBO) expressed concern yesterday about the decision the Belgian Minister of Employment, Joëlle Milquet, is expected to make on pre-pensions on Thursday (July 15).

Minister Milquet is set to authorize the pre-pensions from the age of 50 of 641 Opel workers in Antwerp, 300 of whom are aged 50-52.

While the unions contest that the pre-pension acts as an alternative to unemployment for the workers involved, Voka and FEB/VBO argue that the decision simply widens the social cost of financing the pre-pension.

The written approval of the Flemish authority is expected tomorrow but the Flemish Minister-President, Kris Peeters (CD&V), has already stated that Flanders will not meddle in what he deems to be a federal question.

In each major corporate shake-up in the last decade – from Siemens Belgium in 2001 to to Carrefour in 2010 – deviations from the pre-pension age of 60 have been granted; at the same time, the number of pre-pensions in Belgium has increased from 114,320 in 2007 to a forecasted 121,000 in 2010, according to figures from the Belgian National Employment Office.

AmCham Belgium’s position
In its publication, Priorities for a Prosperous Belgium, and in light of an ageing demographic and increased life expectancy, AmCham Belgium proposes a modification of the pre-pension scheme so incentives for continued employment at older ages are strengthened. For example, older workers could be allowed to receive partial retirement benefits while continuing to work.

Retaining older workers in the active workforce strengthens the long-term viability of social programs as well as contributing to economic growth; in this vein, AmCham Belgium proposes a gradual increase in the early retirement age from 60 one year per year to 65.

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