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

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 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 inspection, 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 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.