'The white slavery of the motor world': Opportunism in the interwar road haulage industry

Social History

Volumn 25, Issue 3, 2000, Pages 300-314

  Scott, Peter ^a   Reid, Chris ^a  

^a UNIVERSITY OF PORTSMOUTH   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0042910246     PISSN: 03071022     EISSN: None     Source Type: Journal    
DOI: 10.1080/03071020050143338     Document Type: Article

References (113)

1. H. Smyth, Property Companies and the Construction Industry in Britain (Cambridge, 1985); M. W. Kirby, 'Big business before 1900' in M. W. Kirby and M. B. Rose (eds), Business Enterprise in Modern Britain (Manchester, 1994), 113-38.
2. H. Smyth, Property Companies and the Construction Industry in Britain (Cambridge, 1985); M. W. Kirby, 'Big business before 1900' in M. W. Kirby and M. B. Rose (eds), Business Enterprise in Modern Britain (Manchester, 1994), 113-38.
3. R. Price, Masters, Unions and Men: Work Control in Building and the Rise of Labour 1830-1914 (Cambridge, 1980); E. J. Hobsbawm, Labouring Men: Studies in the History of Labour (London, 1964); W. Garside and H. Gospel, 'Employers and managers: their organizational structure and changing industrial strategies' in C. Wrigley (ed.), A History of British Industrial Relations 1875-1914 (Brighton, 1982), 99-115;A. J. Taylor, 'The sub-contract system in the British coal industry' in L. S. Pressnell (ed.), Studies in the Industrial Revolution Presented to T. S. Ashton (London, 1960), 215-35;S. Pollard, The Genesis of Modern Management: A Study of the Industrial Revolution in Britain (Harmondsworth, 1968), 51-63.
4. R. Price, Masters, Unions and Men: Work Control in Building and the Rise of Labour 1830-1914 (Cambridge, 1980); E. J. Hobsbawm, Labouring Men: Studies in the History of Labour (London, 1964); W. Garside and H. Gospel, 'Employers and managers: their organizational structure and changing industrial strategies' in C. Wrigley (ed.), A History of British Industrial Relations 1875-1914 (Brighton, 1982), 99-115;A. J. Taylor, 'The sub-contract system in the British coal industry' in L. S. Pressnell (ed.), Studies in the Industrial Revolution Presented to T. S. Ashton (London, 1960), 215-35;S. Pollard, The Genesis of Modern Management: A Study of the Industrial Revolution in Britain (Harmondsworth, 1968), 51-63.
5. R. Price, Masters, Unions and Men: Work Control in Building and the Rise of Labour 1830-1914 (Cambridge, 1980); E. J. Hobsbawm, Labouring Men: Studies in the History of Labour (London, 1964); W. Garside and H. Gospel, 'Employers and managers: their organizational structure and changing industrial strategies' in C. Wrigley (ed.), A History of British Industrial Relations 1875-1914 (Brighton, 1982), 99-115;A. J. Taylor, 'The sub-contract system in the British coal industry' in L. S. Pressnell (ed.), Studies in the Industrial Revolution Presented to T. S. Ashton (London, 1960), 215-35;S. Pollard, The Genesis of Modern Management: A Study of the Industrial Revolution in Britain (Harmondsworth, 1968), 51-63.
6. R. Price, Masters, Unions and Men: Work Control in Building and the Rise of Labour 1830-1914 (Cambridge, 1980); E. J. Hobsbawm, Labouring Men: Studies in the History of Labour (London, 1964); W. Garside and H. Gospel, 'Employers and managers: their organizational structure and changing industrial strategies' in C. Wrigley (ed.), A History of British Industrial Relations 1875-1914 (Brighton, 1982), 99-115;A. J. Taylor, 'The sub-contract system in the British coal industry' in L. S. Pressnell (ed.), Studies in the Industrial Revolution Presented to T. S. Ashton (London, 1960), 215-35;S. Pollard, The Genesis of Modern Management: A Study of the Industrial Revolution in Britain (Harmondsworth, 1968), 51-63.
7. R. Price, Masters, Unions and Men: Work Control in Building and the Rise of Labour 1830-1914 (Cambridge, 1980); E. J. Hobsbawm, Labouring Men: Studies in the History of Labour (London, 1964); W. Garside and H. Gospel, 'Employers and managers: their organizational structure and changing industrial strategies' in C. Wrigley (ed.), A History of British Industrial Relations 1875-1914 (Brighton, 1982), 99-115;A. J. Taylor, 'The sub-contract system in the British coal industry' in L. S. Pressnell (ed.), Studies in the Industrial Revolution Presented to T. S. Ashton (London, 1960), 215-35;S. Pollard, The Genesis of Modern Management: A Study of the Industrial Revolution in Britain (Harmondsworth, 1968), 51-63.
8. G. C. Allen, The Industrial Development of Birmingham and the Black Country 1860-1927 (London, 1966); H. Bradley, Men's Work, Women's Work: A Sociological History of the Sexual Division of Labour in Employment (Cambridge, 1989); M. Berg, The Age of Manufactures 1700-1820. Industry, Innovation and Work in Britain, 2nd edn (London, 1994).
9. G. C. Allen, The Industrial Development of Birmingham and the Black Country 1860-1927 (London, 1966); H. Bradley, Men's Work, Women's Work: A Sociological History of the Sexual Division of Labour in Employment (Cambridge, 1989); M. Berg, The Age of Manufactures 1700-1820. Industry, Innovation and Work in Britain, 2nd edn (London, 1994).
10. G. C. Allen, The Industrial Development of Birmingham and the Black Country 1860-1927 (London, 1966); H. Bradley, Men's Work, Women's Work: A Sociological History of the Sexual Division of Labour in Employment (Cambridge, 1989); M. Berg, The Age of Manufactures 1700-1820. Industry, Innovation and Work in Britain, 2nd edn (London, 1994).
11. For example, R. H. Inglis Palgrave (ed.), Dictionary of Political Economy, vol. 3 (1899), 483-4; J. Buttrick, 'The inside contract system', Journal of Economic History, XII (1952), 205-21; Hobsbawm, op. cit., 297-300; A White, '". we never knew what price we were going to have till we got to the warehouse": nineteenth-century Sheffield and the industrial district debate', Social History, XXII (1997), 307-17.
12. For example, R. H. Inglis Palgrave (ed.), Dictionary of Political Economy, vol. 3 (1899), 483-4; J. Buttrick, 'The inside contract system', Journal of Economic History, XII (1952), 205-21; Hobsbawm, op. cit., 297-300; A White, '". we never knew what price we were going to have till we got to the warehouse": nineteenth-century Sheffield and the industrial district debate', Social History, XXII (1997), 307-17.
13. For example, R. H. Inglis Palgrave (ed.), Dictionary of Political Economy, vol. 3 (1899), 483-4; J. Buttrick, 'The inside contract system', Journal of Economic History, XII (1952), 205-21; Hobsbawm, op. cit., 297-300; A White, '". we never knew what price we were going to have till we got to the warehouse": nineteenth-century Sheffield and the industrial district debate', Social History, XXII (1997), 307-17.
14. For example, R. H. Inglis Palgrave (ed.), Dictionary of Political Economy, vol. 3 (1899), 483-4; J. Buttrick, 'The inside contract system', Journal of Economic History, XII (1952), 205-21; Hobsbawm, op. cit., 297-300; A White, '". we never knew what price we were going to have till we got to the warehouse": nineteenth-century Sheffield and the industrial district debate', Social History, XXII (1997), 307-17.
15. A. Friedman, Industry and Labour: Class Struggle at Work and Monopoly Capitalism (London, 1977), 119-21; J. F. Wilson, British Business History 1720-1994 (Manchester, 1995), 35-6.
16. A. Friedman, Industry and Labour: Class Struggle at Work and Monopoly Capitalism (London, 1977), 119-21; J. F. Wilson, British Business History 1720-1994 (Manchester, 1995), 35-6.
17. See, for example, N. Millward et al., Workplace Industrial Relations in Transition (Aldershot, 1992), 317. A modern example of subcontracting analogous to that discussed here concerns public house leasing following deregulation of the brewing industry in the late 1980s. A number of court cases have highlighted allegations that certain major breweries persuaded tenants to lease pubs at unrealistically high rents and become tied to beer supplies at what proved to be artificially high prices, on the basis of misleading information regarding potential profitability. R. Thomson and J. Shepherd, 'Sale of 1,000 pubs at risk: leaseholders' action could block Grand Met attempt to comply with OFT's competition requirements', Independent on Sunday, 1 November 1992, Business Section, 3; N. Cohen and R. Oram, 'Inntrepreneur faces rising pressure from bitter landlords', Financial Times, 17 October 1996, 22.
18. See, for example, N. Millward et al., Workplace Industrial Relations in Transition (Aldershot, 1992), 317. A modern example of subcontracting analogous to that discussed here concerns public house leasing following deregulation of the brewing industry in the late 1980s. A number of court cases have highlighted allegations that certain major breweries persuaded tenants to lease pubs at unrealistically high rents and become tied to beer supplies at what proved to be artificially high prices, on the basis of misleading information regarding potential profitability. R. Thomson and J. Shepherd, 'Sale of 1,000 pubs at risk: leaseholders' action could block Grand Met attempt to comply with OFT's competition requirements', Independent on Sunday, 1 November 1992, Business Section, 3; N. Cohen and R. Oram, 'Inntrepreneur faces rising pressure from bitter landlords', Financial Times, 17 October 1996, 22.
19. See, for example, N. Millward et al., Workplace Industrial Relations in Transition (Aldershot, 1992), 317. A modern example of subcontracting analogous to that discussed here concerns public house leasing following deregulation of the brewing industry in the late 1980s. A number of court cases have highlighted allegations that certain major breweries persuaded tenants to lease pubs at unrealistically high rents and become tied to beer supplies at what proved to be artificially high prices, on the basis of misleading information regarding potential profitability. R. Thomson and J. Shepherd, 'Sale of 1,000 pubs at risk: leaseholders' action could block Grand Met attempt to comply with OFT's competition requirements', Independent on Sunday, 1 November 1992, Business Section, 3; N. Cohen and R. Oram, 'Inntrepreneur faces rising pressure from bitter landlords', Financial Times, 17 October 1996, 22.
20. 'Control the clearing houses', The Commercial Motor, 5 August 1930, 887-8.
21. ibid., 888.
22. G. Walker, Road and Rail: An Enquiry into the Economics of Competition and State Control (London, 1942), 99-101 (Walker claimed that abuses were restricted to a minority of clearing houses); P. Hart 'The restriction of road haulage', Scottish Journal of Political Economy (1959), 116-38; H. J. Dyos and D. H. Aldcroft, British Transport: An Economic Survey from the Seventeenth Century to the Twentieth (Leicester, 1969), 344-5.
23. G. Walker, Road and Rail: An Enquiry into the Economics of Competition and State Control (London, 1942), 99-101 (Walker claimed that abuses were restricted to a minority of clearing houses); P. Hart 'The restriction of road haulage', Scottish Journal of Political Economy (1959), 116-38; H. J. Dyos and D. H. Aldcroft, British Transport: An Economic Survey from the Seventeenth Century to the Twentieth (Leicester, 1969), 344-5.
24. G. Walker, Road and Rail: An Enquiry into the Economics of Competition and State Control (London, 1942), 99-101 (Walker claimed that abuses were restricted to a minority of clearing houses); P. Hart 'The restriction of road haulage', Scottish Journal of Political Economy (1959), 116-38; H. J. Dyos and D. H. Aldcroft, British Transport: An Economic Survey from the Seventeenth Century to the Twentieth (Leicester, 1969), 344-5.
25. The number of goods vehicles increased from 40,700 in March 1918 to 128,200 in August 1921. British Road Federation, Basic Road Statistics: Great Britain 1950 (London, 1950), 10-11. Details of the disposal of war-surplus vehicles are given in A. Plummer, New British Industries in the Twentieth Century (London, 1937), 75; P. Bagwell, The Transport Revolution from 1770 (London, 1974), 224.
26. The number of goods vehicles increased from 40,700 in March 1918 to 128,200 in August 1921. British Road Federation, Basic Road Statistics: Great Britain 1950 (London, 1950), 10-11. Details of the disposal of war-surplus vehicles are given in A. Plummer, New British Industries in the Twentieth Century (London, 1937), 75; P. Bagwell, The Transport Revolution from 1770 (London, 1974), 224.
27. The number of goods vehicles increased from 40,700 in March 1918 to 128,200 in August 1921. British Road Federation, Basic Road Statistics: Great Britain 1950 (London, 1950), 10-11. Details of the disposal of war-surplus vehicles are given in A. Plummer, New British Industries in the Twentieth Century (London, 1937), 75; P. Bagwell, The Transport Revolution from 1770 (London, 1974), 224.
28. Bagwell, op. cit., 254.
29. P. Scott, 'The growth of road haulage in Britain, 1921-58: an estimate', Journal of Transport History, xix, 2 (1998), 138-55.
30. British Road Federation, op. cit., 22.
31. The estimate refers to goods conveyed in the company's territory. PRO, RAIL 418/106, LMS Railway memorandum, 6 January 1933.
32. P. Scott, 'British railways and the challenge of road haulage: 1919-1939', Twentieth Century British History (forthcoming, 2000).
33. N. Bayliss, 'The small firm in the road haulage industry', Committee of Inquiry on Small Firms, Research Report No. 1 (1971), 8.
34. PRO, LAB11/2491, memorandum H.Q.82-30 E.H., n.d., c. 1937.
35. PRO, RAIL1080/231, minutes of meeting of Special Committee (Goods Managers Representatives) of railway companies, 13 November 1931.
36. PRO, MT34/4, memorandum by National Conference of Road Transport Clearing Houses, 15 April 1940.
37. E. Shrapnell-Smith, 'Economics and coordination of transport by road', Journal of the Institute of Transport (December 1920), 34-46.
38. To some extent freight clearing houses were an extension of the pre-war system of traffic agents. See 'Traffic bureaux', The Commercial Motor, 9 March 1920, 83-4.
39. Dyos and Aldcroft, op. cit., 345.
40. 'Clearing house agreement explained', The Commercial Motor, 8 December 1933, 630; PRO, MT33/337, memorandum of meeting at Ministry of Labour on 4 July 1938. Mr Turner put the figure at 25-30 per cent.
41. PRO, MT33/337, 'The ten per cent provision in the proviso to clause 9', memorandum, 2 July 1938.
42. PRO, MT34/4, memorandum by National Conference of Road Transport Clearing Houses, 15 April 1940.
43. P. Hart, 'The restriction of road haulage', Scottish Journal of Political Economy, VI (1959), 116-38.
44. British Library of Political and Economic Science Archive, Political and Economic Planning Papers, WG7, C. Brunner, 'The road haulage industry', report, 1934.
45. 'Hints for hauliers', The Commercial Motor, 26 December 1922, 569.
46. PRO, MT35/4, memorandum from North Eastern Regional Transport Commissioner, 2 November 1939.
47. O. Williamson, 'Opportunistic behaviour in contracts' in P. Newman (ed.), The New Palgrave Dictionary of Economics and the Law (Basingstoke, 1998), 703.
48. O. Williamson, 'Transactions cost economics' in R. Schmalensee and S. Willig (eds), Handbook of Industrial Organization: Volume 1 (Amsterdam, 1989), 145.
49. M. Katz, 'Vertical contractual relations' in Schmalensee and Willig, op. cit., 698.
50. N. M. Kay, 'Markets, false hierarchies and the role of asset specificity' in C. Pitelis (ed.), Transactions Costs, Markets and Hierarchies (Oxford, 1993), 243.
51. O. Williamson, 'Credible commitments: using hostages to support exchange', American Economic Review, LXXIII (1983), 519-40; Williamson, 'Transactions cost economics', op. cit.
52. O. Williamson, 'Credible commitments: using hostages to support exchange', American Economic Review, LXXIII (1983), 519-40; Williamson, 'Transactions cost economics', op. cit.
53. S. E. Maston (ed.), Case Studies in Contracting and Organization (Oxford, 1996); Williamson, 'Transactions cost economics', op. cit.
54. S. E. Maston (ed.), Case Studies in Contracting and Organization (Oxford, 1996); Williamson, 'Transactions cost economics', op. cit.
55. B. Klein, R. G. Crawford and A. A. Alchian, 'Vertical integration, appropriable rents and the competitive contracting process', Journal of Law and Economics, XXI (1978), 297; R. H. Coase, 'The nature of the firm: influences', Journal of Law, Economics and Organization, IV (1988), 33, 44.
56. B. Klein, R. G. Crawford and A. A. Alchian, 'Vertical integration, appropriable rents and the competitive contracting process', Journal of Law and Economics, XXI (1978), 297; R. H. Coase, 'The nature of the firm: influences', Journal of Law, Economics and Organization, IV (1988), 33, 44.
57. Price, op. cit.
58. For example, Pitman's study of US railroad sidetrack agreements suggests that it took some fifty years for the volume of post-contract rent-seeking via litigation to decline substantially - R. Pitman, 'Specific investments, contracts, and opportunism: the evolution of railroad sidetrack agreements', Journal of Law and Economics, XXXIV (1991), 565-89.
59. P. Joskow, 'Asset specificity and the structure of vertical relationships: empirical evidence' in O. Williamson and S. Winter (eds), The Nature of the Firm. Origins, Evolution and Development (Oxford, 1991), 126.
60. 'Road transport - need for clearing houses', Times Trade and Engineering Supplement (August 1937).
61. M. Casson, Information and Organization: A New Perspective on the Theory of the Firm (Oxford, 1997), 16.
62. Amalgamated Transport Agency Ltd circular, reprinted in The Commercial Motor, 11 November 1924, 389.
63. The evidence assembled by the Ministries of Labour and Transport on this issue is summarized in PRO, LAB11/2491, 'The "ten per cent" proviso to clause 9 of the Road Haulage Wages Bill', memorandum, n.d., c. July 1938.
64. PRO, MT33/337, 'The ten per cent provision in the proviso to clause 9', memorandum, 2 July 1938. It was stated that this percentage varied substantially according to the nature and volume of the freight.
65. 'Control the clearing houses', op. cit., 887-8; Ministry of Transport, Transport Advisory Council: Report on Services and Rates (1937), 87.
66. 'Control the clearing houses', op. cit., 887-8; Ministry of Transport, Transport Advisory Council: Report on Services and Rates (1937), 87.
67. PRO, LAB11/2491, 'The "ten per cent" proviso to clause 9 of the Road Haulage Wages Bill', memorandum, n.d., c. July 1938.
68. Hart, op. cit., 119.
69. Amalgamated Transport Agency Ltd circular, op. cit.
70. PRO, MT33/337, 'The ten per cent provision in the proviso to clause 9', memorandum, 2 July 1938.
71. 'Control the clearing houses', op. cit., 887-8.
72. 'Clearing house agreement explained', op. cit., 630.
73. 'Control the clearing houses', op. cit., 887-8.
74. Ministry of Transport, Transport Advisory Council, 95.
75. PRO, MT33/336, press cutting, 'Clearing house and new company', Motor Transport, 16 April 1938.
76. V. Fox-Smith, Hire Purchase Organization and Management (London, 1932), 206; C. Boiling, Hire-Purchase Trading (London, 1928).
77. V. Fox-Smith, Hire Purchase Organization and Management (London, 1932), 206; C. Boiling, Hire-Purchase Trading (London, 1928).
78. G. Clark, 'Factory discipline', Journal of Economic History, LIV (1994), 134.
79. Royal Commission on Transport, Minutes of Evidence, vol. 3 (1930), 965; The Commercial Motor, various issues.
80. 'A new angle on hire-purchase', The Commercial Motor, 17 April 1936, 306-7.
81. R. Harris, M. Naylor and A. Seldon, Hire Purchase in a Free Society (London, 1961), 25-7.
82. ibid., 24-7. In 1880, for example, Alexander Hay noted similar practices with regard to HP finance for sewing-machines. He argued: 'This plan has been fruitful of abuses. A number of unprincipled second-hand dealers have taken advantage of the system. always retaking the machines, in a summary and brutal way, whenever any of the instalments fell due and were not paid': A. Hay, 'The sewing machine' in M. Berg (ed.), Technology and Toil in Nineteenth Century Britain (London, 1979). 227-31.
83. ibid., 24-7. In 1880, for example, Alexander Hay noted similar practices with regard to HP finance for sewing-machines. He argued: 'This plan has been fruitful of abuses. A number of unprincipled second-hand dealers have taken advantage of the system. always retaking the machines, in a summary and brutal way, whenever any of the instalments fell due and were not paid': A. Hay, 'The sewing machine' in M. Berg (ed.), Technology and Toil in Nineteenth Century Britain (London, 1979). 227-31.
84. 'How to treat hire-purchase instalments', The Commercial Motor, 12 November 1937, 534-5.
85. PRO, LCO2/1511, M. N. Drucquer to A. E. A. Napier, 19 February 1938. Drucquer had experience of hire purchase cases as a judge of the Northampton-Coventry county court circuit from 1928-37 and of Willesden and Brentford county courts from 1937.
86. ibid.; F. O. Skeltow to G. R. Hall Caine, MP, 2 November 1937.
87. ibid.; F. O. Skeltow to G. R. Hall Caine, MP, 2 November 1937.
88. 'Control the clearing houses', op. cit., 887-8.
89. Katz, op. cit., 656.
90. O. Williamson, Markets and Hierarchies: Analysis and Antitrust Implications (New York, 1975), 66.
91. 'Control the clearing houses', op. cit., 887-8.
92. Hart, op. cit., 119; Macleod and Walters argued that as bankruptcy rates were relatively low in road haulage compared to, for example, retailing, the extent of business failure in this industry was exaggerated. However, they appear to confuse bankruptcy and business failure. Clearing houses and other HP providers could reclaim defaulting hauliers' vehicles without instituting bankruptcy proceedings and, with few other business assets, there would be little incentive for other debtors to incur the costs of instituting such proceedings. W. Macleod and A. Walters, 'A note on bankruptcy in road haulage', Journal of Industrial Economics, v (1956-7), 63-7.
93. Hart, op. cit., 119; Macleod and Walters argued that as bankruptcy rates were relatively low in road haulage compared to, for example, retailing, the extent of business failure in this industry was exaggerated. However, they appear to confuse bankruptcy and business failure. Clearing houses and other HP providers could reclaim defaulting hauliers' vehicles without instituting bankruptcy proceedings and, with few other business assets, there would be little incentive for other debtors to incur the costs of instituting such proceedings. W. Macleod and A. Walters, 'A note on bankruptcy in road haulage', Journal of Industrial Economics, v (1956-7), 63-7.
94. Walker, op. cit., 100-1.
95. PRO, MT33/336, 'Wages legislation. Carriage of goods by road. Clearing houses', memorandum, 7 April 1938.
96. ibid.
97. 'A new angle on hire-purchase', op. cit., 306-7.
98. Royal Commission on Transport, op. cit., 965; Walker, op. cit., 100.
99. Royal Commission on Transport, op. cit., 965; Walker, op. cit., 100.
100. 'Hints for hauliers', op. cit., 569.
101. However, Hart (op. cit.) has argued that the incidence of accidents attributable to goods vehicles, while substantially in excess of that for private cars (per thousand vehicles), was not as great as some contemporary accounts suggest.
102. PRO, MT33/337, memorandum to Minister of Labour by Scottish Carriers' and Haulage Contractors Association, n.d., c. May 1938.
103. 'Clear out the clearing houses', The Commetcial Motor, 8 January 1937, 719.
104. For example, correspondence with the Licensing Authority regarding J. H. Turnbull & Sons and their subcontractor M. Conolly confirmed that Turnbull undertook all administration work for Conolly. PRO, MT33/331, F. Milton, Associated Road Operators, to Clerk of Licensing Authority, 11 November 1935.
105. The unemployment rate for road haulage was also increased by an element of casual labour in some sections of the industry and on account of some workers associated with horse-drawn transport who were made unemployed by the spread of motor vehicles.
106. Department of Employment, British Labour Statistics: Historical Abstract 1886-1968 (1971), Table 164.
107. The Commercial Motor played some role, for those hauliers who subscribed to it, in highlighting the general use of these practices, but stopped short of naming particular clearing houses.
108. It is not suggested that opportunism provides the only rationale for subcontracting. Subcontracting arrangements have historically offered employers a number of benefits, in terms of flexibility, specialization and reduced managerial costs and effort. See Price, op. cit., 29; Hobsbawm, op. cit., 298; Friedman, op. cit., 114; Allen, op. cit., 159. However, Allen also acknowledges that debts incurred by subcontractors could lead to long-term ties to employers that put subcontractors in their power.
109. It is not suggested that opportunism provides the only rationale for subcontracting. Subcontracting arrangements have historically offered employers a number of benefits, in terms of flexibility, specialization and reduced managerial costs and effort. See Price, op. cit., 29; Hobsbawm, op. cit., 298; Friedman, op. cit., 114; Allen, op. cit., 159. However, Allen also acknowledges that debts incurred by subcontractors could lead to long-term ties to employers that put subcontractors in their power.
110. It is not suggested that opportunism provides the only rationale for subcontracting. Subcontracting arrangements have historically offered employers a number of benefits, in terms of flexibility, specialization and reduced managerial costs and effort. See Price, op. cit., 29; Hobsbawm, op. cit., 298; Friedman, op. cit., 114; Allen, op. cit., 159. However, Allen also acknowledges that debts incurred by subcontractors could lead to long-term ties to employers that put subcontractors in their power.
111. It is not suggested that opportunism provides the only rationale for subcontracting. Subcontracting arrangements have historically offered employers a number of benefits, in terms of flexibility, specialization and reduced managerial costs and effort. See Price, op. cit., 29; Hobsbawm, op. cit., 298; Friedman, op. cit., 114; Allen, op. cit., 159. However, Allen also acknowledges that debts incurred by subcontractors could lead to long-term ties to employers that put subcontractors in their power.
112. White, op. cit., 307-17.
113. Increased working hours would also increase some operating costs and vehicle obsolescence. For simplicity, these factors are ignored in the model.