1. Introduction to HRM - Lecture 4 - The Historical Context of IR
01/10/2005
Introduction to HRM
Lecture 4: The Historical Context of Industrial Relations Niels-Erik Wergin
© Niels-Erik Wergin

2. Why study the History of IR?
Because
“in no other country do contemporary developments reflect as strongly deep historical origins” as in the UK.
(Edwards et al. 1998: 2)
With other words: in order to understand the present, we need to understand the past.

3. Overview Three topics: The development of trade unions
The development of employers’ organisations
The development of employment law and IR institutions
These 3 topics are related to the 3 actors in IR: labour (employees/unions), capital (employers), and the state

4. The Origins of Industrial Relations (IR)
Introduction to HRM - Lecture 4 - The Historical Context of IR
01/10/2005
The Origins of Industrial Relations (IR)
(History of IR) influenced by four major factors: Politics, Economics, Society and Technology
The history of IR began in the late 18th century
Industrialisation ( )
Emergence of a factory system
Development of a capitalist economy
Major changes in economy and society
Result: Emergence of a working class
Reaction: Establishment of trade unions (TUs)
These three factors are closely linked – they happened simultaneously, and conditioned each other
© Niels-Erik Wergin

5. The Beginnings: Early 19th Century
1799/1800: Combinations Act – collective organisation of workers and strikes are an illegal "restraint of trade"  conspiracy
1824: Combinations Act repealed
yet, during much of the 19th C., governments and the law remained hostile tow. organisation of workers; strikes still illegal
 serious obstacles to the establishment of TUs
1834: "Tolpuddle Martyrs" exiled to Australia

6. Early-mid 19th C. – The first Unions
Introduction to HRM - Lecture 4 - The Historical Context of IR
01/10/2005
Early-mid 19th C. – The first Unions
First local trade unions developed out of medieval craft guilds of skilled workers
From mid 19th C.: local unions of craftsmen formed nationwide amalgamations
 first modern TUs / "New Model Unions“
involves formal organisation with hierarchy from national to branch level, offices, paid union officers etc.
more permanent than previous organisations
employers started to engage in collective bargaining (collective negotiations) with these unions
1851: ASE – Amalgamated Society of Engineers (now part of Amicus)
Craft guilds: their functions were sometimes only marginally related to IR
© Niels-Erik Wergin

7. The late 19th Century – More Unions
1868: Trades Union Council (TUC) formed
1871: Trade Union Act gives TUs legal status
1880s: semi-skilled and unskilled workers begin to organise – "New Unionism" / "General Unions"
Gas workers' union (now part of GMB)
Dockers's union (now part of T&G)
1880s: White-collar unions formed
Nat. Union of Elementary Teachers (now part of NUT)
1890s: over 1000 unions (Ø m’ship just over 1000)

8. The late 19th Century – Changed Government Policy
1899: TUC establishes forerunner of Labour Party
late 19th C.: Royal Commission on Labour concludes that strong organisations of workers and employers are the most stable basis for regulating employment
Support of TUs and collective bargaining becomes official govt. policy for almost a century (until Thatcher)
1906: Trade Disputes Act protects trade unions and the right to strike
provided main principles of trade union law (until Thatcher)
based on a system of immunities from legal liabilities

9. Employers’ Associations (EAs)
EAs also grew during late 19th - early 20th century, as a reaction to the establishment of TUs
Origins in 18th C. were local collaboration
Engineering Employers Federation
Building Trades Federation
Ship Building Federation
Growth in 20th C. – linked to national bargaining
Decline since 1980s – linked to switch to local bargaining

10. The Shop Steward Movement
During first world war: emergence of Shop Steward Movement
more radical rank-and-file movement than established unions
"parallel unionism"
mainly in engineering, shipbuilding
Becomes less important in interwar period
Becomes important again during the 1960s

11. The Post-War Period - Keynesianism
Establishment of “Welfare State”
Full employment
Economic growth
Trade Unions are at the peak of their power and membership
In the late 1970s, Jack Jones and Hugh Scanlon, the leaders of two big unions (and not the prime minister) are voted as “most powerful men of Britain” in a survey

12. The 1970s
1971: Conservative government introduces "Industrial Relations Act"
comprehensive legal framework, similar to US system
law is resisted by both employers and unions
1974: law is repealed by Labour government
1978/79: "Winter of Discontent" – series of long strikes in the public sector
 the (Labour) government seemed to have lost control, many people thought that unions were to powerful

13. The 1980s/90s: Thatcherism
: Conservative governments (Margaret Thatcher and John Major)
Economic policy of liberalisation, deregulation and privatisation
Shift from Keynesianism to Neo-liberalism
Shift from national to local bargaining
Most radical changes to IR legislation since the industrial revolution
Achieved by a series of eight laws on IR

14. New IR Legislation under Thatcher and Major
Major elements of these laws:
restriction of strikes
govt. support for collective bargaining ends
end of closed shop
regulation of internal union affairs
restriction of individual employment rights/protection
Weakened TUs considerably:
Miners Strike lost
Wapping Dispute 1986 lost

15. Since 1997: “New” Labour
The new Labour Government under Tony Blair did not change the legal framework introduced by the conservatives, apart from three major changes:
TU recognition legislation
Minimum wage
Right to strike strengthened
Also: support for social partnership and “new unionism”

16. Further Readings
Edwards, P et al. (1998): “Great Britain: From Partial Collectivism to Neo- liberalism to Where?” In: Ferner, A/Hyman, R (eds.): Changing Industrial Relations in Europe, pp Oxford, Malden: Blackwell.
Hyman, R (1995): “The Historical Evolution of British Industrial Relations”. In: Edwards, P (ed.): Industrial Relations – Theory and Practice in Britain, pp Oxford, Cambridge: Blackwell.
Marchington, M/Goodman, J/Berridge, J (2004): “Employment Relations in Britain”. In: Bamber, G/Lansbury, R/Wailes, N (eds.): International and Comparative Employment Relations – Globalisation and the Developed Market Economies, pp London et al.: Sage. 
Salamon, Michael (2000): Industrial Relations – Theory and Practice (4th ed.). Harlow: Prentice Hall.