Abstract: | This article examines the impact on British trade unions of the break in relations with the government, the economic recession and labour market developments in the 1980s. The shift towards a programme of 'labour exclusion' is related to specific policies designed to weaken trade unions and liberalize labour markets. A close investigation of data on union organization and activity indicates that, despite evident reversals, a full-scale de-institutionalization of industrial relations is not occurring. However, the links between government policies and longer-term socioeconomic trends pose severe challenges for union revival. The article concludes with some considerations on the future prospects of union-government relations. |