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Despite high unemployment, a collapse in manufacturing output and employment, a government‐engineered fall in international competitiveness that has resulted in an unprecedented deficit in non‐oil trade and zero net growth in the Gross Domestic Product between 1979 and 1983, the basic features of British workplace industrial relations remain unchanged. The economic changes wrought by the recession since 1979 in Scotland and the UK and the resurgence of older traditions in industrial relations are described.

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