Technological Progress and Issues of Labor Resource Utilization

V. I. Nagornov

(Presented by the scientific seminar of the Department of Political Economy)

Expanded socialist reproduction is a multifaceted process encompassing all the phenomena of society’s economic life in their close interconnection and interdependence. It represents the unity of the processes of reproduction of labor resources, objects of labor, and means of labor. All these components are subject to the single laws of social development, but each of them has its own specific regularities, giving rise to special problems that must be studied by economic science.

A historical tendency of contemporary expanded reproduction is that it is carried out on a new technical basis. Under conditions of scientific and technological progress, the re-equipment and expansion of existing industrial enterprises, or the construction of new ones, poses before society a number of economic problems, on the solution of which the increase in the efficiency of social production depends to a significant degree.

One of the most important problems is that of the utilization of labor resources. The complexity and multifaceted character of this problem are due to the fact that the reproduction of labor resources is influenced not only by economic phenomena, but also by social ones.

Many economic and social phenomena are interconnected and conditioned by technological progress, since technological progress at the present time is the chief lever of the growth and improvement of socialist production. One of the problems conditioned by technological progress is ensuring the rational employment of the country’s labor resources. The importance of this problem is increasing because in many economic regions—

there is an acute shortage of labor in our country. This problem has arisen most tangibly for the regions of Siberia and the Far East, on whose territory, during this five-year period and in subsequent years, industrial complexes will be created on the basis of newly discovered deposits of oil and gas, forest resources, and other minerals. The development of the productive forces in these regions cannot proceed without taking into account the available labor resources. As for the West Siberian economic region and, in particular, Tomsk Oblast, in 1968 the need for labor resources was only partially met: for employees—by 70–75%, and for workers—by 67–70%. The situation is similar in other oblasts as well.

The further development of the oblast’s productive forces will aggravate this problem still more, since the natural increase of the oblast’s population in the next 10 years will not be able to meet the needs of growing production. Moreover, it is steadily declining. Thus, for the Union as a whole, from 1913 to 1964 population growth declined by 25%¹), and for Tomsk Oblast this decline is even greater.

Using the extrapolation method, it may be calculated that in 1970 the oblast’s need for labor resources amounted to 544.7 thousand persons, and in 1975—to 727.5 thousand persons.

If the existing migration situation persists, the shortage of labor resources will rise sharply. Already in 1970 it amounted in the oblast to 52.7 thousand persons; in 1975 it will amount to 127.7 thousand persons; and in 1980 it will reach 215.8 thousand persons²).

The release of labor power under conditions of machine production is a natural result of technical progress, making it possible partially to solve the problem of labor resources. For Tomsk Oblast, the main form of utilizing labor power released as a result of the partial mechanization of manual labor until recently has been its redistribution within the enterprise. This practice also has objective grounds, since the released workers were used to replace workers who had left enterprises for various reasons (turnover), and met the additional needs of these enterprises for labor power in connection with increased production volumes.

It is another matter when technical progress takes the form of comprehensive mechanization and proceeds at high rates. It sharply raises labor productivity and leads to the release of part of the labor force beyond the boundaries of enterprises, which causes the formation of temporarily free labor power. In addition to technical progress (the introduction of new machines and units, modernization of equipment, changes in the technological process, specialization of production, mechanization of manual labor, etc.), temporarily free labor resources are also formed by workers connected with the seasonal character of production, as well as by the able-bodied part of society engaged in study (students of higher educational institutions and technicums).

When considering the question of the rational utilization of labor resources, a number of authors reduce this problem to the following: “The rational utilization of labor resources found its expression in the maximum possible involvement of the able-bodied—

¹) See: B. Ts. Urlanis. Birth Rate and Life Expectancy in the USSR.

²) The calculations were made on the basis of the statistical reporting of Form 2-T of organizations of Tomsk Oblast.

... of the population in the social economy, the achievement of optimal proportions in the distribution of labor resources between the production and nonproduction spheres, and within them by branches, types of labor and professions, in ensuring the effective expenditure of labor power—at every sector of the national economy”³).

In our view, the problem of the rational use of labor resources is considerably broader and includes temporarily available labor resources. Temporarily available labor resources, formed under the influence of technical progress, are characterized above all by their skill composition and thereby differ from the able-bodied population being drawn into production for the first time. As a result, the use of temporarily available labor resources immediately yields a saving of labor in the acquisition of qualifications.

Knowledge of the age-sex composition and qualifications of temporarily available labor resources makes it possible to plan in advance their use in particular types of production. This, on the one hand, will eliminate the spontaneous movement of temporarily available labor from one type of production to another with a change in qualifications, and, on the other hand, will make it possible, in a planned manner, to direct migration flows to those economic regions that experience the greatest need for labor power.

Although technical progress does lead to the formation of temporarily available labor power, which is undoubtedly a positive phenomenon, this still does not mean that the construction of new enterprises and the expansion of existing ones must always be carried out on a new technical basis. The point is that in a number of cases it is more advantageous, in small and medium-sized towns, to build enterprises not on a new but on an intermediate technical basis, one that makes it possible to involve in social production the entire able-bodied population of these towns. True, such measures are expedient only for labor-surplus regions. This point of view is supported by other authors as well.

Medium-sized enterprises with intermediate technology should be supported and built also because the balance of equipment and qualified labor power does not permit the construction only of large enterprises equipped with the newest machinery and employing the most advanced technology. For the same reasons, other things being equal, it is more expedient to send new machinery not to labor-surplus regions, but to the eastern regions of the country⁴), especially since 25–30% of the machine-tool stock of enterprises in Siberia and the Far East is morally obsolete.

The use of new, more productive equipment and the most advanced technology leads to the formation of temporarily available labor power, which can, in a planned manner, be redistributed within the given economic region. In this connection, it is expedient, in our view, to consider the question of supplementing the balance of labor resources with a partial balance of temporarily available labor resources.

The possibility of using workers connected with the seasonal character of production, and students during the summer vacation period, makes it possible—

³) See: L. G. Gin, V. G. Egorov et al., Current Problems of the Social Productivity of Labor. Leningrad, 1969, p. 36.

⁴) See: M. Sonin, Problems of the Economic Stimulation of Scientific and Technical Progress. Nauka Publishing House, Moscow, 1967, pp. 196–197.

creates other economic and social problems. This is, above all, their relocation to areas of comprehensive development.

Economic analysis makes it possible to judge the great economic efficiency of using temporarily free labor resources in construction. Thus, in 1968 and 1969, student construction detachments working in Tomsk and the region put into use 12,364.8 and 11,876.7 thousand rubles of capital investments. This is equivalent to the work of a construction organization with a staff of more than 2,000 industrial-production personnel over the course of a year. At the same time, each member of a student construction detachment accounted for 2,424.3 rubles of capital investments over 1.5 months of work¹. For comparison, we note that permanent workers of construction organizations put into use slightly more than 6,000 rubles per year in the Tomskstroy trust.

The efficiency of using labor power resettled from other economic regions through organized recruitment is, in our view, significantly lower than that of student detachments. This is due to the fact that each detachment is a comprehensive brigade performing all types of work, from the zero cycle through finishing work. The narrow specialization of permanent workers in construction organizations, although their productivity is higher, leads to downtime because of the absence of a work front, construction materials, poor organization of labor, and similar reasons. In student construction detachments there is practically no downtime due to the work front.

The second factor is socialist competition among the brigades of one detachment and among different detachments, which, together with the scientific organization of labor, brings each student’s output to 53.16² rubles per one man-day on average for the regional detachment. The output of permanent workers is considerably lower; it amounts to 35–40³ rubles per one man-day in construction organizations of Tomsk Oblast.

In the specialized detachment “Energiya,” output in 1968 was still higher—70.0⁴ rubles per one man-day. If, however, one takes into account the high intensity of labor and the long working day, which in 1968 amounted to 9 hours, and, finally, the fact that the most able-bodied labor force is recruited into student construction detachments, aged 17–28, then the high output is the result of both productivity and labor intensity. In addition, the settlement stability of migrants is very low: not only do they fail to take root, but they also additionally draw the indigenous population into a spontaneous migration flow. Thus, in 1959–1964 the net migration balance of Western Siberia was negative (−133). In 1963, for every 100 arrivals, 108 departed from Western Siberia⁵. Therefore, the efficiency of using the labor of resettled persons declines significantly.

On the other hand, the costs of organized recruitment and resettlement from other economic regions to Tomsk Oblast cost the state 740 rubles, or 25 rubles per month; use—

the use of student construction brigades costs the state somewhat less—45.6 rubles, or 23 rubles per month⁶.

The work of student construction brigades is temporary in character, but nevertheless it makes it possible to partially solve the problem of labor resources, especially during the period of its greatest turnover, which falls in June–August.

However, up to the present time the planning bodies have not taken these circumstances into account and have drawn up plans without regard to the use of temporarily free labor resources. As a result, student construction brigades lose part of their working time because of the absence of construction materials. After the work of the student brigades is completed, a similar phenomenon is observed among permanent workers as well, since the construction materials delivered during the navigation period are fully used by the student brigades; this leads to both potential and actual underutilization of labor resources⁷.

Therefore, in planning one should proceed from the fact that student construction brigades in the summer period are, as it were, independent organizations, and plan for them stocks of construction materials in advance, with delivery in June–July.

However, it should be borne in mind that additional material incentives (a piece-rate bonus wage system) for temporary workers, including non-students, leads to increased turnover of the labor force and to the transfer of workers from the category of permanent workers to the category of temporarily free workers, which reduces the effectiveness of the use of labor resources. Here is what the regional newspaper writes on this subject: “And now a well-known foreman heads a brigade of shabashniki. The man abandoned his own collective, in which he was respected..., and had a decent wage. He left his brigade at the most difficult time—the construction-promfinplan of the Tomskpromstroi trust is now being watched with concern by the entire oblast,” and further: “...over 2.5 months, upon final settlement, each shabashnik received 2,571 rubles, or 50 rubles 84 kopecks per day. Fifty rubles a day—that is what drowned out the sense of duty and the voice of conscience”⁸.

Secondly, besides construction, students carry out political-educational and patronage work, the usefulness of which, from both the economic and the social point of view, is obvious. Until now, plans have been developed by planning organizations without taking into account the use of temporarily free labor resources. The result of this is downtime of student construction brigades because of the absence of construction materials.

After the work of the student brigades is completed, a similar phenomenon is observed among permanent workers as well, since the construction materials delivered during the navigation period are fully used by the student brigades; this leads to both potential and actual underutilization of labor resources. Therefore, in planning one should proceed from the fact that student construction brigades in the summer period are, as it were, independent organizations, and release to them stocks of construction materials in advance, regardless of which organization and in which district they will be working.

The use of temporarily available labor leads to the need for an increase in fixed and circulating production assets for a short period. While the problems of increasing circulating assets can be solved relatively easily, an increase in fixed production assets is associated with the predominant use of temporarily available labor in jobs with a low level of industrialization of labor. Construction is precisely the branch in which labor is least mechanized.

For enterprises operating under the new system of planning and material incentives, the problem of increasing fixed production assets is aggravated still further, since none of them can afford to keep on its balance sheet a surplus of fixed production assets used only for 1.5–2 months, that is, during the period when temporarily available labor resources are being brought in.

The problem of making more efficient use of existing assets is solved by the fact that the enterprise fully satisfies its need for labor personnel for the given period; the introduction of two-shift work through temporarily available labor, which is “surplus” in the given period, makes it possible to increase the shift-work and equipment-utilization coefficients, which has a considerable effect on the profitability of the given enterprise.

The use of temporarily available labor resources also makes it possible to solve a social problem—the problem of summer vacations for permanent workers.

As is well known, permanent workers express a desire to take their vacation in the summer. This is especially characteristic of workers in the northern regions of Siberia. It is precisely during this period that temporarily available labor is used (in particular, student construction brigades).

The problem of increasing circulating assets can be solved, as already noted, through preliminary planning of additional circulating assets, taking into account the number of temporarily available workers to be brought in. Thus, the use of temporarily available labor makes it possible to solve, first, in part, the personnel problem; second, the problem of more efficient use of fixed and circulating production assets; and third, certain social problems, such as summer vacations for permanent workers.

1. Statistical reporting of the Regional Headquarters of Student Construction Detachments under the Regional Committee of the Komsomol. ↩

2. Statistical reporting of the regional headquarters of student construction detachments. ↩

3. Statistical reporting of construction organizations of the city of Tomsk. ↩

4. Statistical reporting of the Regional Headquarters of Student Construction Detachments. ↩

5. See: D. I. Valentei. Theory and Policy of Population. Moscow, 1967, pp. 132–133. ↩

6. The costs are calculated only for nonresident students. For organizational recruitment, the workers work for 3 years, until the expiration of the contract; therefore one-time costs of 740 rubles are attributed to 3 years. ↩

7. See the newspaper Krasnoe znamya, No. 147 (13564), “Bezrabotnyi tselinnik.” ↩

8. Newspaper Krasnoe znamya, No. 184 (13601), 1968. ↩