Margaret Thatcher - Her Conservatism and its Impact on the Flexible Labour Market

The recent passing of Margaret Thatcher has prompted much debate, and reignited old rivalries from when she was in power. Her political philosophy and economic policies emphasised deregulation, Flexible Labour Markets, the privatisation of state-owned companies, and reducing the power and influence of Trade Unions. The successes, trials and tribulations of her Government are very real to see and still impact substantially on our way of life, none more so than the Flexible Labour Market.

This is where I turn my attention and ponder whether “Thatcherism” has benefitted the Recruitment Industry or specifically “the provision for temporary and contract resource”. When Mrs Thatcher became Prime Minister in 1979, British Labour Unions were powerful and Labour Markets rigid, inflexible and in many ways uncompetitive. Her first task was restoring “a fair balance between the rights and duties of the Trade Union movement.” It was Thatcher’s view that British Labour laws were in need of reform because the Labour Party had allowed unions to bargain for wages and working conditions that made British firms uncompetitive in an increasingly global economy.

Thatcher’s Labour law reforms forced managers to think about employees as individuals, rather than Trade Union Member bound by rules and restrictions. During the 1980s there was a series of Employment Acts which served to buttress the Unions and empower the individual (1980, 1982, 1988 & 1990 Employment Acts and the 1984 Trade Union Act).  This was supported by the progress shown by New Labour, after they won the General Election in 1997. Their caution and avoidance to reverse many of these changes hints that something was radically wrong in Britain in the 1970s and that many of Thatcher’s reforms had (however grudgingly) gained widespread acceptance. In fact although minor changes were made, the Labour Government avoided radical change in this area, which allowed the continued development of free and Flexible Labour Markets.

With privatisation and the change in Labour laws, came competition. Organisations needed a flexible workforce that could operate with rapidly changing supply and demand. Temporary workers and individuals operating through private limited companies provided one such solution.

Today, UK industry is full of flexible Labour solutions; the recruitment industry has benefitted significantly from the changes made. Flexible workers, such as contractors and freelancers, now account for 6% of the UK’s workforce, making it a significant constituency within the UK, deserving of a voice at policymaking and Governmental levels. Today’s British Labour Market is more vibrant and dynamic, in part, due to the Labour Union reforms of the Thatcher Government.

Stuart Adams, Manager, Sanderson Government & Defence