Radical |
Modes of exploitation and safety in the British construction industry Erik Sutherland Abstract This paper examines recent proclamations relating to the supposedly low level of industrial 'accidents' in Britain over the post-1945 period. In particular it uses statistical analysis of the relationship between industrial injuries, intensification of work, and political turning-points associated with differing modes of capitalist regulation. The paper offers empirical analysis of fatal injuries in the British construction industry over a time-series of fifty years. The analysis aims to extend safety research through an examination of a series of different variables over a longer duration, and by drawing on the work of Kuczynski - a radical statistician - on several national labour movements (1939; 1942-46). The paper attempts to contribute to a radical political economy approach to industrial injuries and their relation to the differing forms of exploitation employed at particular historical points (1) (2). The official line of the health and safety inspectorate In an official Press Release on the publication of the Health and Safety Commission and Executive (HSC/E) Annual Report for the year 1994/95, Frank Davies, Chairman of the HSC, stated that: 'A mark of the success of Britain=s health and safety regime over the last twenty years is the striking reduction in the number of fatal accidents. I am very pleased to be able to report that fatal injuries are still around last year's historic low' (HSC/E, Press Release, C58: 95, 21.11.95). In the same Press Release, Davies continued that the rate of fatal injuries per worker had been maintained at the low level of 1993/94, that a "downward trend" was in evidence and that in order to secure further improvement the Inspectorate would promote a programme of action based on the concept that 'Good Health is Good Business'. It is indeed the impression that this is the case if we look only at the number of fatalities in the construction industry. Figure 1 shows the pattern of fatalities in the construction industry over the half-century under review. Figure 1 appears to show a secular decline in construction industry fatalities dating from around 1965 to "an historic low" in 1994. However, it is the argument of this paper that this trend is an illusory one, more apparent than real, for it does not take into consideration variations in the level of employment, hours worked and the intensity of work. More recently, an increase in the number of deaths at work was described as 'a rather tragic blip' by Jenny Bacon, Director General of the HSE. Miss Bacon then went on to comment on the rise in annual fatalities in construction from 82 to an estimated 98 as a 'discouraging result, especially as we increased the number of our inspectors for the construction industry and put in a great deal of work on introducing new Regulations. We will be looking at what action to take locally but the industry itself has to act' (HSC/E Press Release, E133: 97, 28.07.97). This paper argues that 'good business' and 'safety' are fundamentally contradictory and that, as long as the priorities of industry remain directed towards profit rather than workers' safety, the 'self-regulation' of safety by industry will continue to produce unacceptable levels of industrial harm. Figure 1. Fatal injuries in construction, 1946-96. Towards a political economy of safety Figure 2. Employment in construction, 1946-96. To properly examine the development of fatal injuries in the construction industry, or in any industry for that matter, it is necessary to compute a rate which is not merely per worker or per hour but the fatality rate per worker per hour - the exposure rate. Hours worked during the period under consideration show a rising trend from 1946 to a 1965 peak of 49.9 hours per average working week. This rising trend levels off at a lower level from 1966-70 before curving upwards from 1970-3. After that average hours worked per week in construction show a downward tendency to 1977, falling to 45.9 hours in 1976. In the following decade hours rose slowly every year, with the exception of 1983, from 1978 to 1988, before rising much more sharply in 1988-91. Finally, average weekly hours worked in construction declined in 1992-3. Figure 3 gives the best possible statistical representation of the development of 'safety' in construction over the post-war period. As can be seen from Figure 3, the exposure rate for construction presents quite a different picture to that of fatal injuries alone. In particular, the tendency to increase when we move into the 1980s is all the more obvious for the exposure rate. Moreover, the exposure data series shows that there is no secular decline in the fatality rate for the construction industry in the post-war period. However, the point of statistics is, as Kuczynski states, to see what lies behind them. Figure 3. Fatal exposure rate in construction, 1946-96. In explaining the development of the series we may distinguish four key phases. The specific method of exploitation in the first two of these post-war phases centres on the lengthening of the working day and on the employment of more and more variable capital. The extraction of surplus value in the first two phases is, thus, concerned with extensive exploitation of labour and the creation of absolute surplus value. In the second two phases the specific method of exploitation changes. Both of these later phases are characterised by declining employment and an attempt by capital in the construction industry to increase the labour-effort within the working day; the intensification of labour. If the specific method of exploitation is the same in any two periods then variance in the performance of the exposure rate must be explained by reference to other variables. This paper concentrates attention on the influence of the countervailing power of labour in the constellation of class forces on the performance of the exposure rate. A radical explanation of the development of 'safety' in
construction, 1945-96 1946-57: Building workers and 'the bonus' Figure 4. Fatal exposure rate and wage-profit rate, 1948-57. The labour shortage which obtained in the immediate post-war period was not conducive to the introduction of PBR and 'the main principles behind the 1947 settlement relating wages to output were to a large degree ignored' (Wood, 1979: 66). In short, the countervailing influence exerted by the class power of labour in construction during the initial post-war period was effective in resisting the drive towards increased intensity of exploitation sought by capital under the 1947 settlement. The wage-profit ratio, if anything, declined over this first phase, as did the fatal exposure rate. The 1947 settlement did, however, become an integral part of the Working Rules Agreement and ushered in the very different 'piecework' method of working which, as Wood notes, 'was to have much wider ramifications' (Wood, 1979: 67).
1958-69: The 'Lump' and the crisis of building trade unionism Figure 5. Fatal exposure rate and wage-profit rate, 1958-69. 1970-8: The resurgence of labour Figure 6. Fatal exposure rate and wage profit rate, 1970-78 Figure 7. Self-employment in construction, 1961-95. 1979-93: Intensification of labour and the retrenchment of
safety Figure 8. Fatal exposure rate and wage-profit rate, 1979-96. Overall the years 1979-96 saw an intensification of labour in the construction industry. This is particularly so after 1981 when the intensification of labour increased sharply to a new and higher level. As a response to what has been appositely called the 'permanent crisis of labour' in the construction industry, labour cost savings were pursued by contractors through the utilisation of labour only subcontractors. That this is the case can be illustrated by reference to Figures 9 and 10. Figure 9. Wage-profit rate and profit rate in construction, 1951-96. Figure 10. Investment as proportion of profits, 1948-96. Figure 9 shows that while the wage-profit ratio leaps to a new and higher level after 1981, the rate of profit does not follow the same course - it does rise but the rate of increase is much slower than that of the wage-profit ratio. What is more, as this rise in the wage-profit ratio occurs in the context of a low rate of capital accumulation out of profits (declining investment both in general and for plant and machinery) as shown in Figure 10, it is reasonable to conclude that the increase is largely a result of increased labour effort. This is all the more clear when we consider the share of the value of output going to wage labour as is shown in Figure 11.
Figure 11. Labour share of output in construction, 1948-96. It is clear from Figure 11 that the share of output going to labour has generally declined over the entire period under consideration. However, each particular phase of the post-war period has its characteristics: an increase in the first phase; relative stability early in the second followed by sharp decline after the mid-1960s; a brief period of increase in the 1970s; followed by a downward trend after 1981. Hence, throughout the 1980s and 1990s the number of workers employed declined, average weekly hours worked increased, the labour share declined, and the wage-profit rate rose dramatically. In terms of the specific method of exploitation, the 1980s and 1990s are characterised by the change from the combination of extensive and intensive exploitation where absolute and relative surplus value are extracted to a political economic context where the intensive method of surplus value extraction predominates. Considerable 'recessionary restructuring' took place in this phase (Novek, 1992) (3). The number of small, generally sub-contracting, firms in the industry rose from 80.7 per cent in 1980 to 93.5 per cent of the total number of firms by 1991. The same sector also saw the percentage share in work-done rise from 18 to 27.5 and in employment from 20.6 to 43 between 1980 and 1994. The industrial crisis years 1981-3 saw unemployment in the industry reach 30 per cent and generally remain between 11 and 18 per cent since. Over the period self-employment in construction grew from 366,000 in 1980 to 722,000 in 1989, falling away during the crisis 1989-1992, and standing at 571,000 in 1993. The consequences of such 'recessionary restructuring' for trade union activity are well known. Managerial control of a manual labour-process was tightened and building work considerably speeded up without an increase in productive workers which, in turn, had a direct effect on industrial injury rates (4). By 1989 trade union density had fallen to around 30 per cent, while strike activity fell massively from 281,000 days in 1980 to only 1,000 days in 1993. Moreover, labour turnover and company insolvencies increased, thus removing the beneficial safety effects of stability and security of employment. Building workers have seen the security and conditions of their employment undermined during the 1980s and 1990s. The re-organisation of production has served to intensify the labour process through the mechanism of self-employed sub-contracting, which places labour productivity at the centre of the labour-process. This affects self-employed workers in particular but has clear knock-on effects for all workers, with all the concomitant hazards. Hence the fatal exposure rate follows the wage-profit ratio in the period 1979-96 (see Figure 8). The correlation between these two variables is aqll the more remarkable when we consider the pattern of development of the wage-profit ratio and the major injury exposure rate for the period 1981-96 (see Figure 12) (5). Figure 12. Major injury exposure rate and wage-profit rate, 1981-96. In summary, our findings for the 1979-96 period show that a political economic context in which building workers' ability to resist attempts at increasing the rate of exploitation has been considerably weakened will tend to produce an injury exposure rate which closely follows the development of the Marxist category of surplus value (the wage-profit ratio) (6). Conclusions Acknowledgements Notes Table 1. Cycles of industrial production in Britain, 1946-92.
4. The issue of 'productive' and 'unproductive' labour is of importance here concerning the re-composition of labour and the concept of an analogous re-composition of work in employment which is less dangerous. This can be examined through the rate of unproductive Administrative, Professional, Technical and Clerical staff (APTC) to operatives in construction. While it has not been possible to construct a complete series for this rate - publishing APTC employees in Housing and Construction Statistics was discontinued in 1989 - Figure 13 shows the development of the ratio of unproductive to productive labour from 1974-88: Figure 13. Ratio of unproductive to productive labour, 1974-88. 5. It should be noted that the major injury exposure rate is not a continuous series. The break in the series is between 1985 and 1986/87, when changes in reporting criteria were introduced with the move from Notification of Accidents and Dangerous Occurrences Regulation (NADOR)1980 to Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 1985. This does not, however, significantly undermine the argument developed here that the dynamic of injury causation is rooted in the specific form of exploitation. 6. These findings are in accordance with Nichols' computation of an exposure rate for British manufacturing in the Postscript of The Sociology of Industrial Injury (1997). Here Nichols warns that it is important not to be sanguine about the safety performance of British industry in the 1980s and 1990s "in the way that an uncritical interpretation of the HSE'=s administrative statistics on injury rates might initially suggest" (Nichols, 1997, 205). Technical Appendix (A) Fatal exposure rate The numbers of fatalities are extracted from various Annual Reports of the Chief Inspector of Factories for the period 1948-1972 and from 1972 onwards from Health and Safety Executive publications and Health and Safety Statistics (various issues). Data on fatalities include injuries to workers in works of engineering construction which were recorded separately. The data on number of workers employed for 1948-1969 are based on employees contained in the Annual Abstract of Statistics (various issues), not all persons, and therefore exclude APTC staff; for 1969-1997 data on workers in construction series are derived from relevant editions of Housing and Construction Statistics and are a composite of public and private operatives as well as self-employed workers from Department of Employment estimates published in Housing and Construction Statistics and the Employment Gazette. APTC employees are not included in the series (1969-96) due to considerations of unproductive labour and the "distribution of risk". Data on hours worked are taken from Historical Abstract of British Labour Statistics for 1948-1969 and from Housing and Construction Statistics from 1969 onwards. Missing data on hours worked for 1969 were extracted from the Monthly Digest of Statistics. (B) Major injury exposure rate Major injuries data come from various issues of Health and Safety Statistics for 1981 onwards. The number of workers and hours worked are as (A) above. (C) Unemployment Data used in the unemployment series for 1948-69 are from Annual Abstract of Statistics (various issues); for 1969-81 from Housing and Construction Statistics; and from 1981-84 from Employment Gazette; and from 1984-97 from Labour Force Survey: Historical Supplement (ONS, 1997). (D) Trade union membership Trade union membership referred to in the paper is taken from the recorded membership of UCATT in various volumes of the Annual Report of the TUC for 1972-1997. Before 1972, trade union membership relates to the composite membership of the unions which later amalgamated to form UCATT. (E) Strike action While there are problems with using thousands of days lost per year as a measure of labour strength - as more prolonged actions may be the result of relative weakness and short (successful) actions a function of relative strength - this was felt to be the most appropriate measure given space constraints. The data are from the Annual Abstract of Statistics, British Labour Statistics and the Employment Gazette throughout the period under consideration. (F) Self-employment The series for self-employment (or workers on the 'Lump') is taken from Department of Employment estimates published in Employment Gazette and Housing and Construction Statistics for 1960-97. Inland Revenue Statistics have also been consulted; however, the most consistent series (Department of Employment) has been adopted here. There are major discrepancies between the Department of Employment estimates and the Inland Revenue returns for self-employment SC60/714 (the latter being around 30 per cent higher). While issues of illegal employment do pose problems for the statistical series it is impossible to comment decisively on whether the impact of this has changed greatly over time, although the statutory codification of the AGrip/Lump@ in the 1970s statutes make this less of a Aproblem@ for the second half of the series, at least in a strictly legal sense. (G) Wage-profit rate, profit rate and investment rate These series are all derived from the National Accounts and Expenditure, now known as UK National Accounts (or "Blue Book"). The term wage-profit ratio owes something to the work of Phelps Brown (1968); however, its construction in this paper follows the method developed by Marx in the formulation of surplus value, i.e. s/v, or the amount of surplus produced as a percentage of the variable capital laid out. The ratio attempts to enumerate and evaluate the specific forms that exploitation takes over time. Contractors' output and profit here include estimates of output by small firms and self-employed workers as well as local authority and private contractors= output. Further comment on the construction of the wage-profit ratio can be found in Cockshott, Cottrell and Michaelson (1995; 1996). The rates are calculated as follows: WP = P/W x 100; LS = W/O x 100; INVtot = GDFCtot/P x 100; and INVpm = GDFCpm/P x 100. WP is wage-profit, P is profit, W is wages, LS is labour share, O is output, INVtot is total investment, INVpm is investment in plant and machinery, GDFCtot is total investment, and GDFCpm is investment in plant and machinery. In the Blue Book, Income from Employment equals wages, salaries and employers= contributions; Income from Self-Employment is the income of persons from unincorporated businesses, sole traders and partnerships measured after deductions for business operating expenses (before tax, interest payments and appreciation/depreciation; Gross Domestic Fixed Capital Formation is expenditure on fixed assets (buildings, vehicles, plant, machinery) either for replacing or adding stock of fixed capital; GDP equals total economic activity and is the sum of all Aincomes@ plus the sum of value added by sector; Gross Profits are trading profits before deductions of tax, interest payments, appreciation/depreciation. REFERENCES Arnison, J. (no date) The Shrewsbury Three. Austrin, T. 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Wood, L. (1979) A Union to Build: the story of
UCATT. London: Lawrence & Wishart. Erik Sutherland |
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