Is the “British disease” back?

Two big industrial disputes have erupted in Britain today. First, talks between British Airways and the Unite trade union broke down, meaning that this weekend’s strike on BA seems almost certain to go ahead. Second, the Rail, Maritime and Transport (RMT) union announced that signal-workers on the railway have voted, by a small majority, to go on strike as well.

The only frustration for newspaper headline writers is that, since spring has finally burst into life this week, these two strikes cannot be characterised as constituting a “winter of discontent”. But it is an opportunity to ask if the so-called British disease – industrial unrest – has reappeared.

The perhaps equally disappointing answer is no. Days of work lost to strike action are at a fraction of what they were in the 1970s and 80s. Employment law reforms, introduced by the last Conservative government, and left essentially intact by the current Labour one, ensure that it is far harder for unions to go out on strike. And in the context of tough economic times, voting for a strike that will cost union members pay is not something that is lightly done.

What is on the immediate horizon is a British general election. This must be part of the calculation taking place on both sides of these disputes. Unions may be hoping that the government will intervene to bring these strikes to an end. This in turn may be encouraging managements to hang tough.

Whatever the truth, it is not terribly edifying. Willie Walsh, BA’s chief executive, concedes that the offer he put on the table today is “not as attractive” as the one he made last week. On the other hand, he has invested a lot of time in negotiations and even given union leaders his mobile phone number. He must want a deal.

Negotiation involves compromise. That means being prepared to move, and take some pain to avoid a worse situation. The RMT and Network Rail (the employer) have agreed to go to the arbitration service ACAS next week. That is at least serious. But BA and Unite seem determined to have a public row, before they too in the end do a deal.

We might describe such destructive industrial relations as a kind of disease, but it is one to be found in other countries, as well as Britain. What did Churchill say about “the confirmed unteachability of mankind”?



About the authors

Stefan Stern writes a column on Tuesdays on management. He is winner of the 2010 Towers Watson award for excellence in HR journalism, and has previously won awards from the Work Foundation and the Management Consultancies Association.

Ravi Mattu is the editor of Business Life, the FT's management features section, and a former editor of the Mastering Management series. He joined the FT in 2000 from Prospect magazine

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