The neoliberal fairytale is over (Jeff J Mitchell/Getty Images)

Headlines scream about a looming “class war“; reports warn of an inevitable “summer of discontent”. Britain’s newspapers are trying their hardest to evoke the chaos of the winter of 1978-79, which, in the neoliberal fairy-tale version of history, marked the grim nadir of union power and social collapse in the UK. As with all fairy-tales, it also had a happy ending, in this case with Britain’s exhausted voters ejecting James Callaghan’s Labour government and sweeping Mrs Thatcher into office to save the country from intransigent union barons and far-Left militancy.
Yet on almost every level, the notion that we’re seeing a return to the Seventies is fantasy politics. Certainly, by paralysing Britain’s rail transportation network through the withdrawal of their members’ labour, the RMT has demonstrated the latent industrial power of Britain’s workers. But just as one swallow does not make a summer, so three days of national strikes by a single union does not signal a return to 1979, let alone a future blighted by class war. Union membership and labour militancy remain at historic lows across the Western world, including in Britain.
Yes, Britain’s summer of chaos is real enough: energy prices, NHS waiting lists, flight cancellations, and inflation are all spiralling. But none of these ills can be attributed to union power or working-class tumult.
It is not uppity labourers but supply chain shocks stemming from the pandemic and lockdown, as well as the Ukraine war, that are driving inflation, smoothed along by pre-emptive corporate price hikes. It is not union barons but airline companies, which slashed so many jobs during the lockdown, that have shredded Britons’ summer plans. And unlike in the Seventies, today’s economic sclerosis can hardly be blamed on creaking nationalised behemoths, given the fact that the Tories have sold off most of them over the last 40 years.
Under an exhausted Tory government, corporate profits are booming while wages are being eaten up by inflation. We are at the end of the process that began with Thatcher’s election in 1979. In short, however this tale unfolds, it will necessarily have a different ending; a neoliberal fairy godmother isn’t going to come to the rescue.
Back in Seventies, governments had no choice but to negotiate with pervasive and powerful unions. Then Thatcher came along and pursued a different tack of open confrontation in her bid to break up the power of the organised working class. Today, the Conservative government’s refusal to negotiate with the RMT is no flash of Thatcherite steel, but a sign that they are unwilling to take political responsibility for Britain’s railway grid, which they have already been nationalising through a haphazard, piecemeal process driven by necessity over the last few years. The Tories’ unwillingness to fully reverse the failed disaster of rail privatisation betokens no commitment to free market nostrums, but a simple inability to see anything through at all.
Join the discussion
Join like minded readers that support our journalism by becoming a paid subscriber
To join the discussion in the comments, become a paid subscriber.
Join like minded readers that support our journalism, read unlimited articles and enjoy other subscriber-only benefits.
Subscribe