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The 'social contract' that they made with the Wilson and Callaghan Governments suited them very well indeed, even if in the end they did not quite keep their side of the bargain. But this was just the kind of 'governing' that Thatcherism repudiated. Thatcherism's intention to cure the 'British disease', to restore Britain's vigour, and to raise its standard of living, was another basic reason for changing the legal status and duties of trade unions. Their legal status lies somewhere between that of corporations and of unincorporated associations. Like corporations, they can make collective agreements with others, such as employers, but unlike corporations, their agreements are assumed not to be enforceable as legal contracts. Employers, however small their business, were compelled to recognize trade unions, to disclose the business's future plans to them, and were exposed to legal action for unfair dismissal on grounds so wide that they were left helpless against troublesome or useless employees.
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