Margaret Thatcher: The Autobiography (38 page)

But just as the political reality was never as bad as it seemed at the time of the agreement of the Lib-Lab Pact, so we were now in truth facing far more serious problems than even the commentators understood. Our popularity largely reflected widespread reaction against the Government’s manifest failures. Now that some order was being restored to the public finances, we would be under more pressure to spell out our own alternative. We would have to set out clearly and persuasively an alternative analysis and set of policies. For my part, I was keen to do just that. But I knew that on such central questions as trade union power, incomes policy and public spending there was still no agreement in Shadow Cabinet between the minority of us who fundamentally rejected the approach pursued between 1970 and 1974 and the majority who more or less wished to continue it. All of the damaging divisions which plagued us over these years, and which we desperately tried to minimize by agreeing on ‘lines to take’, stemmed from that basic problem. Ultimately, it was not one which was amenable to the techniques of political management, only to the infinitely more difficult process of clarifying thoughts and changing minds.

So it was that what came to be known as the ‘Grunwick affair’ burst onto the political scene. This was a clear case of the outrageous abuse of trade union power. Paradoxically, it proved almost as politically damaging to us, whom the unions regarded with undisguised hostility, as to the Labour Party, who were their friends and sometime clients.

Grunwick was a medium-sized photographic processing and printing business in north-west London run by a dynamic Anglo-Indian entrepreneur, George Ward, with a largely immigrant workforce. A dispute in the summer of 1976 resulted in a walkout of a number of workers and their subsequent dismissal. This escalated into a contest between the management and the APEX trade union, which had subsequently signed up the dismissed workers and demanded ‘recognition’. That would have given the union the right to negotiate on behalf of its members working for the
company. APEX consequently demanded the reinstatement of those who had been dismissed.

For its part, Grunwick established in the courts that the dismissals had been perfectly legal – even under Labour’s new union legislation, which the unions had virtually written themselves. None of those who had been dismissed could be taken back under existing law unless
all
were taken back, and in a number of cases there was simply too much bad blood. Grunwick argued too that the behaviour of APEX in other firms suggested that it was out to impose a closed shop. Finally, secret ballots conducted by MORI and Gallup showed that the great majority of the Grunwick workforce – over 80 per cent – did not want to join APEX, or any other union.

A left-wing coalition emerged to support APEX and punish Grunwick. Every part of the socialist world was represented: the local Brent Trades Council, trade union leaders and ‘flying pickets’, the Socialist Workers Party, and leading members of the Labour Party itself, among them Cabinet ministers Shirley Williams and Fred Mulley, and the Minister for Sport, Denis Howell, who dusted off their donkey jackets and joined the Grunwick picket line for a short time, a couple of weeks before the picketing turned violent. Someone called it ‘the Ascot of the Left’.

The National Association for Freedom (NAFF) took up the case of George Ward as part of its campaign against abuses of individual freedom resulting from overweening trade union power. NAFF had been launched in December 1975, shortly after the IRA’s murder of someone who would have been one of its leading lights – Ross McWhirter, whom I had known (along with his twin brother Norris) from Orpington days.
*
NAFF’s Chairman was Bill De L’Isle and Dudley, the war hero and the MP who had spoken to us at Oxford attacking Yalta when I was an undergraduate.

The mass picketing began at the end of June 1977 and continued day after day with terrifying scenes of mob violence, injuries to police and pickets. At times thousands of demonstrators crowded the narrow suburban streets around the Grunwick factory, to waylay the coaches laid on by the firm to bring their employees through. So I asked my PPS, Adam Butler, and Jim Prior’s number two, Barney Hayhoe, to join the employees on one of their morning coach journeys through the hail of missiles
and abuse. Adam reported back to me on the fear – and the courage – of the people he had been with.

During this period a strange reticence gripped the Government. The Shadow Cabinet organized a number of Private Notice Questions to force ministers to declare their position on the violence. We issued a statement demanding that the Prime Minister state categorically that the police had the Government’s backing in carrying out their duties. But as I wrote to John Gouriet, one of NAFF’s directors, at the time: ‘we feel that the scenes of wild violence portrayed on television plus the wild charges and allegations being thrown about in certain quarters, are enough in themselves to put most of the public on the side of right and are doing more than hours of argument’.

Although the scenes outside the factory seemed to symbolize the consequences of giving trade unions virtually unlimited immunity in civil law, it was in fact the criminal law against violence and intimidation which was being breached. No matter how many new legal provisions might be desirable, the first duty of the authorities was to uphold the existing law. All the more so because the violence at Grunwick was part of a wider challenge posed by the far Left to the rule of law; and no one quite knew how far that challenge would ultimately go.

It was also at this time that a new shamelessness on the part of the Left became apparent. Until the early 1970s, Transport House banned members of certain ‘proscribed organizations’ on the far Left from being members of the Labour Party. The lifting of this ban, long sought by the Left, was a very significant landmark in Labour’s drift to extremism. Hard-left Labour MPs saw less reason to conceal their links with communist organizations. The warmth of fraternal relations between trade union leaders and socialist politicians on the one hand and the Soviet bloc on the other was undisguised. High-ranking Soviet visitors were received by both the TUC and the Labour Party. Trotskyist organizations, such as the Militant Tendency, began to gain a grip on Labour Party constituencies. There was an almost tangible sense that, whatever the IMF or Prime Minister Jim Callaghan might think, it was the extreme Left whose programme represented Labour’s future, and that whether the tactics employed to achieve it were violent or peaceful was the only question at issue. In such an atmosphere, the scenes at Grunwick suggested – and not only to the Left itself – that perhaps the revolution had begun.

Grunwick came to symbolize the closed shop, under which employees had effectively been compelled to join a union if they wished to obtain or
keep a job. This was because NAFF was also vigorously campaigning against the closed shop. Also APEX clearly wished to coerce Grunwick’s employees, probably with a view ultimately to achieving a closed shop in the industry. More broadly, the closed shop represented a secure redoubt of trade union power from which further assaults on liberty could be mounted.

Yet, for all that, Grunwick was not limited to the closed shop; it was about the sheer power of the unions. Appalled as I was by what was happening at Grunwick, I did not believe that the time was yet ripe to depart from the cautious line about trade union reform (which I had agreed with Jim Prior) in order to mount a radical attack on the closed shop. We had to consider a much wider raft of questions, ranging from the unions’ immunity under civil law, to violence and intimidation which only escaped the criminal law because they came under the guise of lawful picketing. Until we had begun to solve some of these problems, we could not effectively outlaw the closed shop.

For Jim Prior, I suspect, it was a practical question rather than a moral one: the important thing was to be realistic and accept that the trade unions could not be tamed by law. Any reform would need their cooperation. By contrast, Keith Joseph was an unswerving opponent of what he saw as a breach of human rights resulting from collectivist bullying. Jim’s and Keith’s opposing views, expressed in public statements on the Scarman Report on the Grunwick dispute, brought all this out into the open. At the time, I thought that Keith’s criticisms of Lord Scarman were too sharp, though the Scarman Report itself was anything but a judicial document and had no legal force. Moreover Jim, not Keith, was the spokesman on these matters. Either I sacked Jim, or I moved him (neither of which I could afford to do), or I had to go along with his approach.

That was what I did. In retrospect, Jim and I were wrong and Keith was right. What the whole affair demonstrated was that our careful avoidance of any kind of commitment to changing the law on industrial relations, though it might make sense in normal times, would be weak and unsustainable in a crisis. But I took the decision to support Jim in part because, as yet, the climate was still not right to try to harden our policy. But some time soon the nettle would have to be grasped.

In reflecting on all this, I came back to the idea of a referendum. On my return from America I knew that I would be pressed hard by Brian Walden, who was making his debut as interviewer on the television programme
Weekend World
, on what a Conservative Government would
do if it were faced with an all-out confrontation with the trade unions. I had to have a convincing answer: and there was not much hope that any amount of discussion within Shadow Cabinet would arrive at one. So on the programme I argued that although such a confrontation was unlikely, yet if such an emergency was reached, then a referendum might be necessary. The suggestion was well received both in the press and – most significantly – got public backing from both wings of the Party. (It helped perhaps that Jim was expecting a rough ride at the Conservative Party Conference over the closed shop.) I set up a Party Committee under Nick Edwards to report on referenda and their possible uses. But, of course, though the suggestion of a referendum bought us vital time, it was not in itself an answer to the problem of trade union power. Assuming that we won a referendum, so demonstrating that the general public backed the Government against the militants, it would still be necessary to frame the measures to reduce trade union power. And so far we had not seriously considered what those measures should be.

The argument about trade union power remained linked to that about incomes policies. At this time the Government’s own incomes policy was looking increasingly fragile. No formal policy could be agreed with the unions after the end of the second year of ‘restraint’, though the TUC exhorted its members not to seek more than one increase in the next twelve months and the Chancellor of the Exchequer pleaded for settlements to be below 10 per cent (backed as before with the threat of sanctions against employers who paid more). But, of course, whatever difficulties the Labour Government had in agreeing incomes policy with the trade unions were likely to pale into insignificance by comparison with ours. Unfortunately, we were committed to produce a document on economic policy, including incomes policy, before the 1977 Party Conference. David Howell, an able journalist of monetarist persuasions and also a front-bench spokesman, was the principal draftsman. And Geoffrey Howe, remorselessly seeking some kind of consensus between the conflicting views in his Economic Reconstruction Group, had by now become thoroughly convinced of the merits of German-style ‘concerted action’ within some kind of economic forum.

I could see trouble coming down the track and I expressed my unease about all of this. Geoffrey tried to convince me of the system’s merits by sending me a paper on how the Germans did it, but I wrote back: ‘This paper frightens me to death even more. We really must avoid some of this
terrible jargon. Also we should recognize that the German talking shop works because it consists of Germans.’

Work on the document continued, but among the front-bench economic spokesmen rather than the Shadow Cabinet. By contrast with the Grunwick/closed shop issue, Keith, who shared my misgivings about the ‘forum’, was prepared to compromise more than I would have done. And in the end, the document appeared under the signatures of Keith, Geoffrey, Jim Prior, David Howell and Angus Maude; it was not formally endorsed by the Shadow Cabinet.

I never felt much affection for
The Right Approach to the Economy.
Unlike
The Right Approach
of 1976, it made little impact either on the outside world or on the policy we would pursue as a government. I was careful to ensure that ‘concerted action’ – apart from within the limited framework of the NEDC – never saw the light of day.

So it was that we more or less successfully papered over the policy cracks up to the 1977 Party Conference at Blackpool. On the face of it, the Blackpool Conference was a success. Colleagues generally stuck to the agreed lines on controversial issues. Embarrassing splits were avoided. Somewhat in the same spirit was my own speech. It contained many good lines but, for all the spit and polish, it was essentially a rollicking attack on Labour that lacked positive substance. Although the immediate reception was good, it was soon clear that it left the large questions about our policies unanswered; and I was not satisfied with it. My instincts proved correct. Having entered the Conference season several points ahead of Labour in the opinion polls, we finished it running neck and neck. A ‘good’ Conference never avoids rows at the expense of issues.

In any case, January 1978 saw the spotlight turn back onto just those difficult, important issues which the Party managers considered best avoided. Geoffrey Howe, speaking in Swindon, delivered a sharp and comprehensive attack on the role of trade unions in Britain and was met by a barrage of abuse from the union leaders and scarcely concealed irritation from some colleagues. I agreed with Geoffrey and strongly defended him in public. But I was still basically sticking with the Prior line and so I dissuaded him from making a second such speech, noting on the draft: ‘Geoffrey: this is not your subject. Why go on with it? The press will crucify you for this.’