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Neoliberal Labour Governments and the Union Response This page intentionally left blank Neoliberal Labour Governments and the Union Response The Politics of the End of Labourism Jason Schulman AdjunctAssistantProfessor,LehmanCollege,CityUniversityofNewYork,USA ©JasonSchulman2015 Allrightsreserved.Noreproduction,copyortransmissionofthis publicationmaybemadewithoutwrittenpermission. Noportionofthispublicationmaybereproduced,copiedortransmitted savewithwrittenpermissionorinaccordancewiththeprovisionsofthe Copyright,DesignsandPatentsAct1988,orunderthetermsofanylicence permittinglimitedcopyingissuedbytheCopyrightLicensingAgency, SaffronHouse,6–10KirbyStreet,LondonEC1N8TS. Anypersonwhodoesanyunauthorizedactinrelationtothispublication maybeliabletocriminalprosecutionandcivilclaimsfordamages. Theauthorhasassertedhisrighttobeidentifiedastheauthorofthis workinaccordancewiththeCopyright,DesignsandPatentsAct1988. Firstpublished2015by PALGRAVEMACMILLAN PalgraveMacmillanintheUKisanimprintofMacmillanPublishersLimited, registeredinEngland,companynumber785998,ofHoundmills,Basingstoke, HampshireRG216XS. PalgraveMacmillanintheUSisadivisionofStMartin’sPressLLC, 175FifthAvenue,NewYork,NY10010. PalgraveMacmillanistheglobalacademicimprintoftheabovecompanies andhascompaniesandrepresentativesthroughouttheworld. Palgrave®andMacmillan®areregisteredtrademarksintheUnitedStates, theUnitedKingdom,Europeandothercountries. ISBN978–1–137–30316–5 Thisbookisprintedonpapersuitableforrecyclingandmadefromfully managedandsustainedforestsources.Logging,pulpingandmanufacturing processesareexpectedtoconformtotheenvironmentalregulationsofthe countryoforigin. AcataloguerecordforthisbookisavailablefromtheBritishLibrary. LibraryofCongressCataloging-in-PublicationData Schulman,Jason,1973– Neoliberallabourgovernmentsandtheunionresponse:thepoliticsof theendoflabourism/JasonSchulman. pages cm ISBN978–1–137–30316–5(hardback) 1. Neoliberalism—GreatBritain. 2. Neoliberalism—Australia. 3. Neoliberalism—NewZealand. 4. LabourParty(GreatBritain) 5. AustralianLaborParty. 6. NewZealandLabourParty. 7. Laborunions—Politicalactivity—GreatBritain. 8. Labor unions—Politicalactivity—Australia. 9. Laborunions—Political activity—NewZealand. I. Title. II. Title:Neoliberallabor governmentsandtheunionresponse. JC574.2.G7S352015 324.2(cid:2)17—dc23 2015002371 To Sheri, for her love and support This page intentionally left blank Contents Acknowledgements viii 1 Introduction:TheTransformationofSocialDemocratic Parties 1 2 TheNewZealandLabourParty 17 3 TheBritishLabourParty 45 4 TheAustralianLaborParty 65 Conclusion 89 Notes 118 Bibliography 150 Index 163 vii Acknowledgements I am grateful to the City University of New York Graduate Center. Iwishtothankmysponsor,Dr.SusanWoodward,foralltheattention and useful criticism she gave me as I frequently revised the book, andDr.JohnBowmanandDr.IrvingLeonard‘Lenny’Markovitzfor similarlyprovidinghelpalongtheway.ManythanksaswelltoRuth O’BrienandthelateW.B.Ofuatey-Kodjoe. I also wish to thank my long-time friend Michael Hirsch for first suggesting that I examine the state of the New Zealand welfare state and whether or not that country remained the ‘Sweden of the South’.FurtherthanksgotoLenRichardsandJillOvens,withwhom I stayed in Auckland, New Zealand, for several weeks in 2006; to MarkGoscheMP,KeithLockeMP,ChrisTrotter,MattMcCarten,Mike Smith, Gerard Hill, David Verran, and Chris Ford for agreeing to be interviewed;Dr.HermanSchwartz,forallowingmetodownloadhis work from his website and to cite it; Dr. Bryce Edwards, who was kindenoughtosendmeacopyofhis(veryuseful)dissertation;and JurriaanBendienandDr.RickKuhnfortheirresearchadvice. Finally, I would like to thank Andrew Baird and Amber Stone-Galilee, my original editors at Palgrave Macmillan; Sara CrowleyVigneau and Jemima Warren, my subsequent editors; my parents,MarcandHadassah,fortheirloveand(attimesmonetary!) support; and above all, my partner, Sheri, to whom this volume is dedicated. viii 1 Introduction: The Transformation of Social Democratic Parties GerassimosMoschonas,theauthorofIntheNameofSocialDemocracy, hasarguedthatalthoughthesocialdemocraticandlabourpartiesof Europewerefoundedwiththeintentionoftransformingcapitalism, theirsuccess in doingso pales in comparison to howcapitalism has transformed social democracy.1 This is indeed the case, not merely for the European social democratic parties but for their Australasian counterparts.Itisrarelyasurprisewhenpartiesoftherightenthusi- asticallyembraceneoliberal,market-orientedeconomicpolicies.But forpartiesofthelefttodoso,notmerelyasconcessionsinthefaceof objective economic conditionsbut at the ideological, programmatic level,indicatesthatadramaticchangehastakenplacewithinsocial democracy in general—indeed, a change in social democracy’s very ‘essence’.Thequestionis,whyhasthisoccurred? Over the last 25 years, virtually all social democratic parties have presided over some degree of market deregulation, commer- cialization, and privatization of the public sector, and at least the piecemealimplementationofwelfare-stateretrenchment.Onemight expect working-class parties, even ones with fairly autocratic inter- nal lives, to be largely immune from an intellectual, ideological embraceofneoliberaldoctrine.Workersandunionleaderstendnot to demand that austerity measures be imposed upon themselves. Yetsocialdemocraticpartieshavehardlyinoculatedthemselvesand are increasingly led by advocates of the free market, deregulation, and privatization. Social democratic parties have generally made no concerted effort to find alternatives to neoliberalism—their role in 1

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