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New legislation ends mandatory retirement

Federally regulated employees in Canada will no longer be forced into retirement because of their age, thanks to new legislation signed into law last week.

According to an article in the National Post, the Harper government has "quietly" repealed the section of the Canadian Human Rights Act that required workers to retire at age 60 or 65 in industries such as banking, communications, and transport.

"We're not born with date stamps saying our fitness for work expires at 65," David Langtry, acting chief commissioner of the Canadian Human Rights Commission said in a statement of support of the new rules.

"Age discrimination is discrimination, pure and simple."

Encouraging people to work longer was also one of the recommendations in a report to the Harper government, last summer, about the problems associated with Canada's aging population.

Specifically, the report talked about the rising cost of health care and retirement benefits in the face of a shrinking number of working-age taxpayers.

"The oldest baby boomers start to turn 65 in 2011, meaning the dependency ratio will start to increase significantly in a matter of months," stated the draft report, which was obtained in redacted form by the Globe and Mail under Access to Information.

"A Canada where seniors outnumber children is uncharted territory."

Despite the 'aging population' argument, the unions may not be pleased with the revocation of the law which will affect more than 800,000 employees.

The Canadian Union of Public Employees (CUPE), Canada's largest union, has long opposed the end of mandatory retirement.

"Eliminating mandatory retirement will mean that workers without adequate pension coverage (including vast numbers of women and immigrants) will never have the option of retiring," notes their website.

"Further, eliminating mandatory retirement and increasing the age of retirement will mean fewer job opportunities for today's unemployed young workers. There will no longer be pressure on governments and employers to train and recruit young workers."

The new rules will come into effect in December of 2012.