Having traced the history of British trade unionism for the course of two centuries, it is perhaps time to draw a balance sheet and ask what are the prospects that lie before the trade union and Labour movement.

Since the collapse of the Soviet Union, and particularly since 11 September 2001, we have entered the most turbulent period on a world scale since the 1930s. It is an epoch of enormous instability – economic, political, military and diplomatic – of wars, economic decline and crises. We have not long emerged from a bloody war in the Gulf, waged in the name of “democracy”. But rather than peace and democracy, a prolonged period of bloody conflict opens up for the people of Iraq and the “coalition” forces.

This war has greatly increased instability worldwide, and especially in the Middle East. It is the prelude to new wars and conflicts to be waged by American imperialism in an attempt to dominate the planet in its own interests. The neo-conservative clique around Bush talks about a “Project for a New American Century”. Astonishingly, the aggressive policies of the Bush administration, like a bull in a china shop, have swiftly undermined the whole basis of world relations established since the Second World War.

Underlying all this instability is a serious economic crisis.

“The global economy is in recession, stocks are in a bear market and the dollar is in decline”, states the financial tycoon George Soros. “In the US, there has been a dramatic shift from budget surplus to deficit. It is difficult to find a time when political and economic conditions have deteriorated as rapidly.”[1]

Thus, globalisation, the old buzzword of the last period, now expresses itself as a global crisis of capitalism.

The present economic slowdown has pushed both Japan and Germany, the world’s main economies after the USA, into a deflationary spiral. Everywhere growth rates have been slashed, as the world economy rests upon the unsound foundations of the American economy.

Stock markets suffer from constant and violent gyrations, which wipe billions off share values at a stroke, slashing pension funds, and destroying future livelihoods in the process. Even in periods of recovery, the world of work has become a nightmare for millions of workers. The modern Taylorism, known as “lean production”, has resulted in increased casualisation, characterised by precious little employment protection and chronic insecurity throughout the labour force. 80 per cent of part-time workers are women, doubly oppressed and many forced to work on minimum wages. Immigrant workers, driven into menial jobs with no rights, are viciously exploited by unscrupulous employers. This intensified exploitation has affected white-collar and blue-collar workers alike. The crude and brutal culture of “market forces” is being introduced into schools, hospitals and old peoples’ homes.

As Marx explained, there are definite material reasons for the movement of the working class. Workers do not strike, demonstrate, or take action for the sake of it. They will only move into action when all other options are exhausted. The idea that workers can be dragooned into struggle against their will is a myth. In the inter-war period and in the first half of the 1970s, many workers were beginning to draw radical and even revolutionary conclusions from their experience. But this has not generally been the case over the last twenty years. In the absence of a serious leadership, many workers attempted to find a way out through individual solutions.

This was particularly the case in Britain, where the “religion of capitalist progress” had penetrated deep into the consciousness of society. Although they were subjected to increased exploitation, the working class was prepared to accept this – at least for a time – as the price for higher wages. A layer of workers opted for early redundancy as an opportunity to get out of work before things got worse. Applications for voluntary redundancy were over-subscribed at British Telecom, Ford Dagenham, Rover, Royal Mail and many other companies facing rationalisation or closure. This was the inevitable consequence of the absence of a lead from the tops of the unions.

The economic boom throughout the 1980s played an important role in determining the outcome of events. The economy certainly played a role in the election victories of the Tories in 1983, 1987 and again in 1992. In general, boom periods of capitalism, even those of a short duration, have an effect upon the consciousness of the working class. They tend to reinforce illusions in the capitalist system. This process was further reinforced by the collapse of Stalinism, and the accompanying ideological offensive against the ideas of socialism and class struggle.

This situation affected the psychology of all classes. The middle class tended to follow the bourgeoisie and its “market” ideology, and even the working class saw no alternative to what was offered to them. During the boom, despite the extreme pressure on the workers, the personal debt, low wages, the long hours of over-work, stress and exhaustion, it was possible for a temporary period for some to obtain a relative amelioration in living standards.

The strength of reformism, and particularly its right wing, was predicated on a combination of these economic factors, past defeats and a lack of leadership from the mass organisations. Nevertheless, these illusions inevitably break down in the end, as the workers continually come face to face with reality. Working people generally want very little out of life – a job, reasonable pay, a roof over their head and a decent education for their children. However, under conditions of capitalist crisis, even these modest requirements are not guaranteed.

As the crisis of capitalism deepens, the ruling class seeks to unburden its problems onto the backs of the working class. Experience has shown that big business is determined to take back the reforms won by the British workers. For every step back the workers make, the employers demand two or three more. Today, the right to a reasonable retirement has been undermined and even a pension at 65 is under threat. Even where concessions are squeezed from the bosses, they are never long lasting. The day-to-day struggle for reforms, and the fight against counter-reforms, must therefore be linked with the need to change society.

  1. The Financial Times, 13 March 2003

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