PATRICIA MCCAFFERTY WORKING THE 'THIRD WAY': NEW LABOUR, EMPLOYMENT RELATIONS, AND SCOTTISH DEVOLUTION THESIS PRESENTED FOR THE DEGREE OF DOCTOR OF PHILOSOPHY, DEPARTMENT OF SOCIOLOGY, UNIVERSITY OF GLASGOW MAY 2004 © PATRICIA M`CAFFERTY, MAY 2004. ABSTRACT Labour's election victory in 1997 was heralded as a new era, the dawn of a Third Way, a novel attempt to chart a unique political course overcoming the perceivedlimitations of both New Right and Old Labour. In this thesis I explore the era of New Labour generally and, in particular, the impact of the Third Way on working lives. Key to my analysis is New Labour's attempt to synthesise oppositional interests,in particular those of capital and labour. This involves a crucial rhetoric of flexibility, competitivenessand partnership. My research explores the rhetoric of New Labour in relation to the reality of this new force in power. It does this by: " drawing out key features in the development of New Labour, especially its relation to Old Labour; " examining central elementsof New Labour ideology; " arguing that Scotland should be seen as central to the transition from Old to New :Labour; " utilising a case study of industrial relations developments in a major electronics factory in the West of Scotland and, to a lesser extent, key developmentsin public sector employment. My main finding is that where New Labour's ideology promisespositive benefits, the form of its implementation has negative impacts for workers. Since I take New Labour as a process, my thesis concludes with a more speculative exploration of possible future developments,both in relations to New Labour's role in them, and their possible impact on the New Labour project. ý1. r. Y' ý) ý WORKING THE 'THIRD WAY': NEW LABOUR, EMPLOYMENT RELATIONS, AND SCOTTISH DEVOLUTION TABLE OF CONTENTS ACKNOWLEDGEMENTS KEY TO ABBREVIATIONS AND ACRONYMS V LIST OF TABLES vi INTRODUCTION The `Returnto Work' 1 The Research:West CoastComputer Industries 8 The Glasgow Social Workers' Strike 16 The `New' Scotland 21 The Outline of the Chapters 26 CHAPTER 1: THE POLITICAL ECONOMY OF NEW LABOUR 1.1 Introduction 31 1.2 A Breakwith the Old? 36 1.3 AssessingNew Labour 46 1.4 The Synthesisof Diversity and Antagonism 54 1.5 A Stake in `the Project'? 57 1.6 Partnershipsand Profits 65 1.7 FromProducer to Consumer:the Eliminationof VestedInterest ? 73 1.8 Globalisation`At Work' 76 1.9 Conclusion 81 CHAPTER 2. NEW LABOUR AND THE UNIONS: CONTINUITY AND CHANGE 2.1 Introduction 83 2.2 Taking the Link `Beyond Left and Right'? 91 2.3 Fairnessnot Favours 101 2.4 A New Era? Partnershipand Flexibility 106 2.5 Working `for' New Labour 115 2.6 Conclusion 129 CHAPTER 'TARTAN' THIRD WAY? NEW LABOUR AND _3._A SCOTTISH DEVOLUTION 3.1 Introduction 133 3.2 The `Settled Will' of the Scottish People? 137 3.3 The Vision of Modernisation through Knowledge 150 3.4 An Entrepreneurial Vision? 154 3.5 Reforming the Public Sector in Scotland 161 3.6 Working with New Labour in Scotland: The Trade Unions 165 3.7 Conclusion 172 CHAPTER 4. WORKING THE `THIRD WAY': WEST COAST COMPUTER INDUSTRIES 4.1 Introduction 175 4.2 West Coast Computer Industries 176 4.3 Invest in Inverclyde 181 CHAPTER 5. FORWARD TOGETHER 5.1 Resistanceand the Struggle for Representation 187 5.2 Recognition in a Cold Climate 197 5.3 `Best Box-Build in Europe' 207 5.4 Setbacks,Successes and Disappointments 223 5.5 The Beginning of the End 232 5.6 Take-over and Restructuring 234 5.7 Closure and the Saviour of Spango 239 CHAPTER 6. REFLECTIONS ON THE `NEW' WORLD OF WORK 6.1 New Labour in Inverclyde 245 6.2 Flexibility, Inclusion and the Rhetoric of Human Capital 249 6.3 `Actually Existing' Partnership 254 6.4 The Real Impact of New Labour's Legislation 259 6.5 Conclusion 267 CONCLUSIONS: THE FORWARD MARCH OF NEW LABOUR HALTED? Introduction 269 The Dawning of a New, New Labour Era? 271 A WeakeningLink? 279 Settling Down to the Scottish Settlement 283 A Reflexive `Moment' in a Long Struggle 287 BIBLIOGRAPHY 292 i ACKNOWLEDGEMENTS It is difficult to know where to start the processof thanking those that have supported me through this long, laborious, process. I will therefore be uncharacteristicallyconventional and start at the beginning. There are many, many people, I'm sure, who have both the ideas and the intellect to undertake research,Yet most never get the opportunity to do so and pet project to map the world we live in never see the light of day. I have been very fortunate in that I received a scholarship to pursue mine from the University of Glasgow. Despite my regular moansabout the level and duration of this scholarship,I am eternally grateful for it. More than this financial support, the academicand administrative staff of the Department of Sociology provided practical and intellectual support, research training, and camaraderie.There are a few individuals who deservea special mention in this respect. First among these is my supervisor, Bert Moorhouse, without whose support this `finished' product could never have been completed.Bert remainedever- mindful of my external commitments and his support and advice was always tempered by his recognition of what he saw as do-able in the light of my personal constraints.I am grateful that he was able to do so, and this helped to motivate when there seemedno light at the end of a very long tunnel. Bridget Fowler was also an invaluable source of support as an efficient post-graduate convenor and as a supportive colleague. It is an understatementto say that the last six years of graft would not have been possible without the love and support of my family. Bob's legendary patience has beentested to the full, and thankfully he appearsrelatively unscathed,if bankrupt, by the whole process. I hope one day to be able to support his own pursuit of an expensivedream, though I doubt I could do so in the selfless manner that Bob has. I also thank my children Sean, Ross and Shannon who were always understanding, even if they didn't really understandwhat this processwas all about. It can't be easy having a parent so preoccupiedwith something that doesn't buy any trainers. They and Bob have given me the most precious reason to seethis through until the end. I would also like to thank my Dad Tommy who, until I left work to do this research, 11 believed that educationwas still free. He bailed me out on more occasionsthat I care to remember,with only the faint promise of `having a doctor in the family' to keep him going. My buddies among the Glasgow University post-graduate community, especiallymy T201 room-mates,have proved a constantsource of support.My thanks go to my fellow traveller Andy Zed, without whose companionshipI could not have gone the distance. We were warned that this would be an isolating experiencebut Andy's friendship kept me from feeling isolated and the laughs we had helped me to keep hold of some of the best elementsof the office culture that I'd left behind. His assurancesthat the academic `polis' were not in fact coming to break down the door helped mitigate againstthe `impostor syndrome' that people like us experiencein this strangenew world of academia.Donna MacKinnon was an invaluable sourceof help at the beginning of the process and her continuing friendship and help over many years is something I hold dear. Chris K has been a great friend too over the last six years and I have enjoyed many intellectually stimulating discussionswith him during that time. Two `newer' friends, Jo Buckle and JeanetteHaegerstrom, have made the final years bearable,especially after Andy `moved on'. If Jo does not succeedin his ambitions for an academic career, though this is unlikely, he has a bright future in stand-up comedy and after dinner speaking. I thank these and all my other good buddies at Glasgow University. Lesley McMillan's support and shrewd insight into the PhD processwas a great comfort and anothervaluable friendship has beenbuilt up over the years. Although many years my junior, I learned lots from Lesley, not least the benefits of protein. Outside of University life, I owe debts of gratitude to many other buddies. First among these is my dear comrade, Gerry Mooney, the pilot who weatheredthe storm. He has been a source of inspiration since he first `nailed his colours to the mast'. His influence on my academicand political developmentis immeasurable.I am eternally grateful for his friendship, advice and much practical support. Thanks are also due to my very patient and accommodatingbuddies, Lynn, Carolynne and Jeanette,who always made me feel as if this was `in the bag' despite my constantwavering. I am also grateful to my lifelong friend Kay whose support and excellent counselling skills were used to full effect at a critical point in the process. Pauline's support was a great motivator too, and I am grateful for the faith that she iii demonstratedin my abilities. Gerry McDade ensured certain standardswere not allowed to slip despite my financial and practical difficulties and I am very grateful for this and his, and Irene's, very supportive friendship over many, many years.Many comradesin the SWP/SSPoffered practical and emotional support, especiallywhen I was trying to fit a very active election campaignaround the demandsof the research. Special thanks to Brian who is probably unaware of his very important influence in this project. Without his own role in early WCCI developments,it might never have got off the ground. He and Liz's `gift' of unlimited access to excellent `study facilities' was absolutely crucial to its completion.