POGS I agree with you that the relationship between employers/government/trades unions was becoming increasingly problematic during the 60's and 70's.
Anyone who was an adult in the 70's will recall the various strikes and the power cuts - I was a working mum and I remember sitting in the office trying to work by the light of lamps, so I experienced those things too.
I think that historically the UK has had a bad record of worker/employer relationships. Where companies in Japan and Germany, for instance, encourage worker representation and a less rigid division between top management and workers, in this country we had a very hierarchical structure, as exemplified by larger companies having restaurants for the "bosses" and canteens for the "workers". It's hardly surprising that industrial relations were tainted by this sort of attitude.
I believe that Mrs T would have pursued her "free market" policies even if there had been no industrial strife - but people like Arthur Scargill actually played into her hands. She was a staunch believer in Milton Friedman's economic philosophy that the market can be left to its own devices and that government should neither own key industries nor have any regulatory function.
On being elected, Mrs T: lowered direct taxes and increased indirect taxes. increased the interest rates and reduced expenditure on social services and education. Her approval rating fell to 23% in December 1980 and there were riots in 1981. By 1982 over 3 million people were unemployed and manufacturing output had decreased by 30% since 1975. The Falklands war in 1982 restored her popularity.
At the same time, North Sea Oil revenue which was at its highest level between 1980 and 1987 was used to balance the economy. From around the 1990's that revenue fell rapidly.
Now that unions have nowhere near as much power as in the past, we we find that there is a huge increase in zero hours contracts, workers being paid minimum or very low wages that need to be made up to more realistic levels by taxpayer benefits, more and more workers being denied sick pay, etc. Meanwhile, we are almost entirely dependent on the financial and service sector, and now the financial sector (which holds no allegiance to any country) holds the country to ransom - threatening to move elsewhere if the government "oversteps the mark" in trying to regulate them.