While your business today may be thriving, if you have not recently assessed the demographics of your workforce, now is the time to take inventory and do some forward thinking. There are fundamental changes happening in the demographics of the workplace. The oldest of Canada’s baby boomers, the largest group in Canadian history, are turning 60 and are on the verge of retirement. Concurrently, at the other end of the demographic scale, young people are not entering the aviation industry in sufficient numbers to meet the growing demand for pilots.

With the realities of our aging workforce, employers will benefit from proactively identifying the level of exposure that the changing demographics may bring to your business. As with any skilled profession, aviation is acutely dependent upon the quality and experience of its workforce. As employees age, a number of factors may contribute to an increased need for work-life balance. For example, aging workers may experience personal health problems, declining physical capabilities and energy levels, stress due to keeping up with rapid changes in technology, and increased family care responsibilities.

Retention of skilled workers may become a critical issue and in order to survive, employers must be proactive. Understanding the challenges faced by your aging workforce, and adapting your culture to meet their needs, may be the key to a successful working relationship. Workplaces will increasingly need to provide an environment that will accommodate the needs of the aging worker.

Begin by ensuring that there is no age discrimination in your human resource practices regarding recruitment, training, work arrangements and retention. Also, utilize your older workers where possible as trainers/mentors, as they are the most valuable resource to transfer knowledge and corporate memory to younger recruits. Try to offer flexible work schedules and arrangements that facilitate retention of experienced workers. And lastly, consider a phased-in retirement plan. A survey conducted in the US showed that three out of four workers aged 51 to 61 would prefer to reduce their hours gradually than to stop working all at once.

The good news for many aviation employers is that boomers appear to be sticking around, giving operators ongoing access to experienced senior personnel. Many employees want meaningful and satisfying work beyond the traditional retirement threshold, and others simply do not have enough retirement savings. Also, improved working conditions and equipment have helped, especially for helicopter pilots.

MANDATORY RETIREMENT AND CANADA PENSION

Generally, labour laws do not specify the retirement age for employees, except in the case of some professions such as airline pilots, military personnel, judges and firefighters. Forcing an employee to retire because of age is an issue covered by human rights acts.The provisions covering mandatory retirement vary from one jurisdiction to another, with major changes happening as recently as December, where in Ontario, mandatory retirement ended on Dec. 12.

However, since aviation is a federally regulated industry, it is covered by the Canada Labour Code and the Canadian Human Rights Act (“the Act”). According to these, mandatory retirement is permitted in some instances. For example, it is not a discriminatory practice under the Act to terminate an individual’s employment when he/she has reached the “normal age of retirement for employees working in similar positions” or if mandatory retirement is based on a “bona fide occupational requirement.” Many airlines worldwide have a mandatory retirement age of 60 for their pilots, which has become a controversial issue – many feel this ‘earlier-thannormal’ retirement is outdated. Due to impending worker shortages, a recent submission by ICAO has suggested raising the retirement age at airlines worldwide.

Depending on the employer’s retirement policy, employees may work beyond the age of 65 and may apply for and receive their CPP pension. Or, they may choose not to apply for CPP and continue to contribute to CPP until age 70. Conversely, employees may retire between 60 and 65 and receive their CPP, which will be permanently adjusted by 0.5% for each month before their 65th birthday.

The future looks promising for the expansion of rotary-wing aviation worldwide. Therefore, in an industry that looks set for continued growth, now more than ever, employers will not only need to be successful at recruiting new employees, but also at retaining experienced senior workers. The future of your business will depend on it.