The legacy of Thatcherism in European labour relations: the impact of the politics of neo-liberalism and austerity on collective bargaining in a fragmenting Europe

• DOI: https://doi.org/10.13169/instemplrighj.2.1.0028
• Pages: 28-57
• Published date: 01 January 2019
• Date: 01 January 2019
• Author: Miguel Martínez Lucio,Aristea Koukiadaki,Isabel Tavora

The legacy of Thatcherism in European labour relations

28

The legacy of Thatcherism in European

labour relations

The impact of the politics of neo-liberalism

and austerity on collective bargaining in

a fragmenting Europe

Miguel Martínez Lucio, Aristea Koukiadaki

and Isabel Tavora

(Work and Equalities Institute, The University of Manchester)

ABSTRACT

The ongoing popularity of neo-liberalist ideologies and the impact of state-

imposed austerity measures has been having a detrimental impact on the

structure of industrial relations within the European Union (EU), especially

in the periphery of Europe. This report assesses these developments in the

EU member states most affected by the most recent economic crisis, namely

Greece, Ireland, Italy, Portugal, Romania, Slovenia and Spain. We highlight

how trade unions in the countries assessed are increasingly constrained

in their ability to regulate the conditions of work through collective agree-

ments, which have systematically deteriorated, making it difficult to sustain

mobilisation and negotiation strategies. This has had a deleterious effect on

pay and working time. Broader austerity measures have also had a substan-

tial impact on areas such as labour inspection, judicial processes and state

mediation services, leading to heightened disorganisation of labour rela-

tions with negative effects for both workers and management. The impact

of neo-liberal and anti-trade union ideas initially inspired by the New Right in

the United Kingdom and the United States of America during the 1980s has

played a significant role in shaping the ideology behind this shift in EU policy

towards ‘weaker states’. We therefore argue that this political heritage of

disorganising labour relations carries great risks in social and organisational

terms for all actors concerned, especially workers and their representatives.

To this end, we develop the critique of deregulation outlined in Ewing et al

(2016) and argue that coordinated structures are important for questions of

social justice.

The legacy of Thatcherism in European labour relations

29

Introduction

The University of Manchester’s Law School and Alliance Manchester

Business School (both parts of the Faculty of Humanities) completed a

research project exploring the transformation of joint regulation and labour

market policy during the economic crisis and its negative impact across

Europe. The study took place in 2014 and involved the collection and analy-

sis of primary empirical data, mostly focusing on understanding the impact

of collective bargaining restrictions in the manufacturing industries of each

of the countries.1 The research was funded by the European Commission

and coordinated by academics at The University of Manchester with the col-

laboration of teams from various European universities. Labour market

policies and measures are radically transforming national systems of collec-

tive bargaining in a number of EU member states including those countries

examined and compared in the research: Greece, Ireland, Italy, Portugal,

Romania, Slovenia and Spain. A list of all those participating is presented in

the endnotes, and their related publications are referenced in the text

where relevant. The rationale for the selection of the seven countries was

twofold. Firstly, they were amongst the European countries most affected

by the economic crisis. Secondly, their labour law and industrial relations

systems had undergone major changes associated with loan agreements

and/or recommendations by European institutions. They also, in the main,

represent a key constituency within the ‘new Europe’ that entered the

European Union at a later stage and which have therefore not always been

at the centre of core decision making (with the exception of Italy). In our

study, we highlighted how trade unions in the countries assessed are

increasingly constrained in their ability to regulate the conditions of work

through collective agreements, which have systematically deteriorated,

making it difficult to sustain mobilisation and negotiation strategies. This

has had a deleterious effect on pay and working time. Broader austerity

measures have also had a substantial impact on areas such as labour inspec-

tion, judicial processes and state mediation services, leading to heightened

disorganisation of labour relations with negative effects for both workers

and management. The impact of neo-liberal and anti-trade union ideas ini-

tially inspired by the New Right in the United Kingdom and the United States

of America during the 1980s has played a significant role in shaping the

ideology behind this shift in EU policy towards ‘weaker states’. We therefore

argue that this political heritage of disorganising labour relations carries

great risks in social and organisational terms for all actors concerned, espe-

cially workers and their representatives. To this end, we develop the critique

of deregulation outlined in Ewing et al (2016) and argue that coordinated

structures are important for questions of social justice.