Even during the general election campaign, Blair intentionally dropped a bombshell. To the consternation of trade unionists in the public sector, he promised urgent radical “reform” of the public services. This he said would now become the prime minister’s top priority. For the Blairites the concept of “reform” has a certain connotation. In the double-speak of George Orwell’s 1984, peace meant war, plenty meant scarcity and so on. And in the New Labour double-speak, reform means counter-reform. It meant continuing attacks on workers’ terms and conditions and the introduction of flexible labour and pay in the public sector. Blair was determined to bring private capital and the morality and methods of the “market place” into the public services, particularly in the form of PFI projects. But by now Blair was pushing the loyalty of the Labour movement to breaking point. A massive reaction was being prepared.

In its second term, the Blair government continued unashamedly with its blatant pro-business policies. Gordon Brown declared he wanted to import US-style “enterprise culture”. And what does this “culture” consist of? The minimum wage in the United States is only $5.15 (£3.40) per hour and has lost 30 per cent of its real value since 1968. The Americans have no real welfare state or free health care. This in a situation where as many as 70 million have no health insurance and are constantly living in fear of becoming ill. On the other hand, pandering to big business, Brown announced that Capital Gains Tax was to be reduced from a maximum of 40 per cent to just 10 per cent.

In the National Health Service the government was planning to introduce the Tory idea of free-standing foundation hospitals. Given the higher status of foundation hospitals compared to ordinary hospitals, they would naturally attract the bulk of resources and investment, and create a two-tier system within the NHS. They would be free to set their own rates of pay and conditions. These hospitals were also to be given powers to attract more private patients than ever before. Dave Prentis of Unison correctly described them as “private hospitals” which paved the way for the wholesale privatisation of the NHS. Alan Milburn, the health secretary, outlined his intention to bring the private sector in to build and run “fast track” surgery centres for the NHS. Private sector firms would also bid to take over the management of “failing” NHS hospitals. This would mean 17 reorganisations of the service in as many years. Again, the same hare-brained pro-market ideas would apply to schools and other educational establishments. Lord Young, ex-Tory Industry Secretary, declared with unusual frankness: “The Chancellor is stealing our clothes.”

Unison, the GMB and other unions strongly attacked the pro-market policy of the government. John Edmonds of the GMB said: “The government should be using its extra investment to improve NHS services rather than increasing private company profits.”[8] But the government was not listening to the unions, only to big business, which was naturally very keen on the idea, licking its lips at the thought of the killing it could make. Tony Blair went so far as to denounce workers in the public services as “wreckers” because they dared to oppose the handing over of hospitals to private profiteers. This was not a casual remark, but a calculated provocation to millions of dedicated, hard-working and low-paid workers in the public services, who were already at the end of their tether.

Blair’s “wreckers speech” provoked Bill Speirs, general secretary of the Scottish Trades Union Congress, to comment: “When I heard it, I thought, ‘when was the last time I heard a prime minister use language like this?’ It was when Margaret Thatcher talked about the unions as ‘the enemy within’ in 1984.” Even John Monks stated he was scandalised when he heard rumours circulating in Millbank Towers that the Blairites wanted to provoke and defeat a major public sector union, much as Thatcher had taken on the miners. “There are some in Labour Party headquarters election campaign who said they relished an early confrontation with a major public sector trade union”, said Monks. “I could not believe it.” This was clearly part of a strategy on behalf of the Blairites to provoke a split with the unions, break the union-Labour links and create a new openly capitalist Party.

This plan was partly put into operation in the autumn 2002, when firefighters became the new “wreckers”. From the very beginning of the dispute the government took a belligerent approach to the firefighters. Typically, Blair rounded on the FBU, accusing the union of being under the control of “politically-motivated” leaders. This attack was reminiscent of Wilson’s denunciation of the seamen’s union in 1966, ironically led by John (poacher-turned-gamekeeper) Prescott. The government wanted the FBU to accept the Bain report, which intended to “modernise” the service by cutting some 6,000 jobs. Such “reforms” would be a disaster for the fire service, putting the lives of many people at risk for the sake of cost-cutting. Prescott, who resigned from his own union over his refusal to support its policies, threatened to impose a deal on the FBU using the new Fire Services Act. “If the FBU does not accept the final offer I will use the arbitration powers in this bill to bring about a settlement,” he said. There were even noises in government circles about banning strikes in essential services, a measure that would have received the unqualified support of the Tories.

Although the firefighters were firmly behind the dispute and there was overwhelming public support for their cause, the FBU leaders unfortunately failed to launch an all-out strike or effectively step up their action, and the dispute dragged on fruitlessly, leading eventually to an impasse and a retreat by the FBU. The deal, while granting modest wage rises, has opened the door to the so-called modernisation of the fire service, with all the attacks and cuts that would entail. The FBU members will now be forced to fight a rearguard action to defend their position against cuts and redundancies.

In the dispute with the firefighters, Blair stuck in his heels, refusing all calls to compromise. This shows how far the right-wingers are prepared to go. At every step of the way they have provoked the trade unions. But in so doing, they have prepared an almighty backlash from the working class, whose patience is being pushed to its limit. The scene is being prepared for the biggest explosions in the class struggle not seen for decades. Unofficial action by BA workers forced management to retreat over new working practices. London postal workers are engaged in official strike action over pay, the first for over seven years. Local authority workers also plan industrial action. In the wake of a series of tube derailments, rail unions are threatening strikes over safety. The recent elections in the trade unions have indicated the beginnings of a sharp turn to the left within the mass organisations of Labour. As the Blair government becomes an increasing barrier to working class advance, the workers will tend to swing over to the industrial front. However, as divisions increasingly open up within the Labour Party, this same tendency will be expressed in the Labour Party itself.

  1. The Financial Times, 21/22 December 2002

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