Tombs and Whyte: The Cost of Health and Safety Infringements

Marxist Criminologists argue that the costs of elite crime are greater than the costs of street-crime, yet the elite are more likely to get away with their crimes. The piece of research below strongly supports this view (refs to follow!)

In the UK Safety Crime has been studied extensively by Professor Tombs, and Dr Whyte (2008). To look at just one example from recent press releases of the Health and Safety Executive: 2.2 million people work in Britain’s construction industry, making it the country’s biggest industry. It is also one of the most dangerous. In the last 25 years, over 2,800 people have died from injuries they received as a result of construction work. There were 77 fatalities last year; many more were injured or made ill.

In March 2008 the HSE reported that over one in three construction sites visited put the lives of workers at risk and operated so far below the acceptable standard that inspectors served 395 enforcement notices and stopped work on 30% of the sites. That followed the report of the HSE on over 1000 spot checks of refurbishment sites across Great Britain during February this year as part of its rolling inspection programme. Work was stopped on site immediately during approximately 300 inspections because inspectors felt there was a real possibility that life would be lost or ruined through serious injury. The inspectors were appalled at the blatant disregard for basic health and safety precautions on refurbishment sites across Great Britain. Basic safety precautions were being flouted. Last year over half of the workers who died on construction sites worked in refurbishment, and the number of deaths rose by 61 per cent.

Tombs and Whyte analyse the causes of such high rates of death and injury in the construction industry: the casualised, sub-contracted and increasingly migrant workforce; the long and complex supply chains; aggressive management; market pressures; industry norms; and problems in regulatory processes.

Weak or non-existent trade unions add to the dangers. An instructive example is a comparison between Norwegian and UK offshore oil industries. The North Sea, while an inhospitable environment, is not inherently dangerous in the sense that it necessarily produces high numbers of worker deaths and injuries. Research has shown that the improved offshore safety in Norway compared to the UK is due to rights for union representatives to stop work when they think that safety is jeopardised, as well as “the maintenance of strong offshore unions with a comprehensive network of trade union-appointed safety representatives; this is in marked contrast to the strident anti-trades unionism of the UK sector”

Tombs and Whyte also looked at the use made of powers under the Company Directors Disqualification Act 1986 to disqualify directors for health and safety failures in the management of companies. Despite the HSE’s spot checks revealing that 30% of construction sites did not meet safety standards, they were able to identify just ten directors who had been disqualified for health and safety reasons between the date when the 1986 Act took effect and the end point of their study in 2005.

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Evaluating Marxist Theories of Crime Part 2 – Kweku Adoboli

In 2013 Kweku Adeboli was jailed for 7 years for committing the biggest White Collar fraud in UK history. This case study can be used to selectively criticise aspects of the Marxist theory of crime. 

A City trader recklessly gambled with illicit trades to boost his bonus, and ran up potential losses of more than £7bn at one point, a sum big enough to sink his employer, the global bank UBS, a court has heard.

Kweku Adoboli, a trusted and experienced member of UBS’s exchange traded fund (ETF) desk in London, risked ever-greater sums in an attempt to conceal his losses over two and a half years before he was caught in September 2011, Southwark crown court was told.

Sasha Wass QC, prosecuting, said “Mr Adoboli’s motive was to increase his bonus, his status, his job prospects and his ego. Like most gamblers he believed he had the magic touch. Like most gamblers, when he lost, he caused chaos and disaster to himself and all of those around him.”

The total losses to UBS were eventually calculated at $2.3bn, or just over £1.4bn. Wass told the jury: “This colossal loss rose purely as a result of Mr Adoboli’s fraudulent deal making, which amounted to naked gambling.” However, she added, at one point the scale of Adoboli’s liabilities to the bank through vast trades, reached almost $12bn which risked the very existence of the bank itself.

Adoboli racked up the giant losses undetected through three means. First, he often exceeded the official daily trading limit per employee of $100m. He also failed to hedge trades by making balancing trades to mitigate potential losses, an insurance method that also caps potential profits. Finally, he falsified data so as not to record his trades properly, often inventing false clients and trades for hedges.

But on 14 September, under intense scrutiny and aware a number of trades were “about to hit the buffers”, Adoboli panicked and walked out of the UBS office, saying he had to see a doctor. Using his home email account he sent his bosses a message which, Wass argued, admitted his guilt.

In the email, read to the court, Adoboli said he had tried to suppress losses from “off book” trades, a number of which were, he warned, still “live”. It continued: “I have now left the office for the sake of discretion. I will need to come back in to discuss the positions and explain face to face but for reasons that are obvious I did not think it was wise to stay on the desk this afternoon.”

Adoboli, a former public schoolboy, denies four counts of fraud and false accounting between October 2008 and September 2011.Adoboli became a trader in December 2005, was promoted to associate director in March 2008 and then director in March 2010. His salary rose dramatically as his career progressed. In 2007 he earned £40,000 and a bonus of £55,000; in 2008 he earned £50,000 and a bonus of £15,000. Then in 2009 he earned £100,000 with a £95,000 bonus; and in 2010 his salary was £100 000 and bonus £200 000

What aspects of the Marxist theory of crime does this support or criticise?