Thatcher was committed to reducing the power of the
trades unions. Several unions launched
strikes in response to legislation introduced to curb their power, but these actions eventually collapsed, and gradually Thatcher's reforms reduced the power and influence of the unions.
The confrontation over strikes, ordered illegally without a national ballot in 1984-85 by the
National Union of Mineworkers (NUM) in opposition to proposals to close a large number of mines, proved decisive.
Police tactics during the strikes came under criticism from
civil libertarians, but the images of crowds of militant miners attempting to prevent other miners from working proved a shock even to some supporters of the strikes. Two miners, Dean Hancock and Russell Shankland, were convicted of the murder of David Wilkie, a taxi driver, whom they killed by throwing a 46lb slab of concrete through the windscreen of his car from a bridge as he drove beneath it. He was driving a colleague of theirs, David Williams, to work. Both were sentenced to life imprisonment . A group of workers, resigned to the impending failure of the actions, worn down by months of protests, and angry at the NUM's failure to hold a national strike ballot, began to defy the Union's rulings, starting splinter groups and advising workers that returning to work was the only viable option. The
Miners' Strike lasted a full year before the NUM leadership conceded without a deal. The Conservative government proceeded to close all but 15 of the country's pits, with the remaining 15 being sold off and privatised in 1994. The defeat of the miners' strike led to a long period of demoralization in the whole of the trade union movement.
At the end of March 1984, four South Africans were arrested in Coventry, remanded in custody, and charged with contravening the
UN arms embargo, which prohibited exports to
apartheid South Africa of military equipment. Mrs Thatcher took a personal interest in the
Coventry Four, and
10 Downing Street requested daily summaries of the case from the prosecuting authority,
HM Customs and Excise. Within a month, the Coventry Four had been freed from jail and allowed to travel to South Africa – on condition that they returned to England for their trial later that year. In April 1984, Thatcher sent senior British diplomat,
Sir John Leahy, to negotiate the release of 16 Britons who had been taken hostage by the
Angolan rebel leader,
Jonas Savimbi. At the time, Savimbi's
UNITA guerrilla movement was financed and supported militarily by the
apartheid regime of South Africa. On
26 April 1984, Leahy succeeded in securing the release of the British hostages at the UNITA base in
Jamba, Angola. In June 1984 Thatcher invited apartheid South Africa's president,
P. W. Botha, and foreign minister,
Pik Botha, to
Chequers in an effort to stave off growing international pressure for the imposition of
economic sanctions against South Africa, where Britain had invested heavily. She reportedly urged President Botha to end apartheid; to release
Nelson Mandela; to halt the harassment of black dissidents; to stop the bombing of
African National Congress (ANC) bases in front-line states; and to comply with UN Security Council resolutions and withdraw from
Namibia. However Botha ignored these demands. In an interview with
Hugo Young for
The Guardian in July 1986, Thatcher expressed her belief that economic sanctions against South Africa would be immoral because they would make thousands of black workers unemployed. In August 1984, foreign minister, Pik Botha, decided not to allow the Coventry Four to return to stand trial, thereby forfeiting £200,000 bail money put up by the South African embassy in London. The Coventry Four affair, and Mrs Thatcher's alleged involvement in it, would hit the headlines four years later when British diplomat,
Patrick Haseldine, wrote a letter to the Guardian newspaper on
7 December 1988.
On the early morning of
12 October 1984, the day before her 59th birthday, Thatcher escaped injury in the
Brighton hotel bombing during the Conservative Party Conference when her hotel room was bombed by the
Provisional Irish Republican Army. Five people died in the attack. A prominent member of the Cabinet,
Norman Tebbit, was injured, and his wife Margaret was left paralysed. Thatcher herself would have been injured if not for the fact that she was delayed from using the bathroom (which suffered more damage than the room she was in at the time the IRA bomb detonated). Thatcher insisted that the conference open on time the next day and made her speech as planned in defiance of the bombers, a gesture which won widespread approval across the political spectrum.
On
15 November 1985, Thatcher signed the Hillsborough
Anglo-Irish Agreement with Irish
Taoiseach Garret FitzGerald, the first time a British government gave the Republic of Ireland a say (albeit advisory) in the governance of Northern Ireland. The agreement was greeted with fury by Northern Irish unionists.
Thatcher's political and economic philosophy emphasised reduced state intervention,
free markets, and
entrepreneurialism. After the 1983 election, the Government sold off most of the large utilities, starting with
British Telecom, which had been in public ownership since the late 1940s. Many people took advantage of
share offers, although many sold their shares immediately for a quick profit and therefore the proportion of shares held by individuals rather than institutions did not increase. The policy of
privatisation, while anathema to many on the left, has become synonymous with
Thatcherism. Wider share-ownership and council house sales became known as "
popular capitalism" to its supporters (a term coined by
John Redwood).
In the
Cold War, Mrs Thatcher supported
United States President Ronald Reagan's policies of
deterrence against the Soviets. This contrasted with the policy of
détente which the West had pursued during the 1970s, and caused friction with allies who still adhered to the idea of
détente.
US forces were permitted by Mrs. Thatcher to station nuclear
cruise missiles at British bases, arousing mass protests by the
Campaign for Nuclear Disarmament. However, she later was the first Western leader to respond warmly to the rise of the future reformist Soviet leader
Mikhail Gorbachev, declaring that she liked him and describing him as "a man we can do business with" after a meeting in 1984, three months before he came to power. This was a start of a move by the West back to a new
détente with the USSR under Gorbachev's leadership, which coincided with the final erosion of Soviet power prior to its eventual collapse in 1991. Thatcher outlasted the Cold War, which ended in 1989, and those who share her views on it credit her with a part in the West's victory, by both the deterrence and
détente postures.
In 1985, as a deliberate snub, the
University of Oxford voted to refuse her an honorary degree in protest against her cuts in funding for higher education. This award had always previously been given to all Prime Ministers who had been educated at Oxford.
Her liking for defence ties with the United States was demonstrated in the
Westland affair when she acted with colleagues to allow the helicopter manufacturer
Westland, a vital defence contractor, to refuse to link with the Italian firm
Agusta in order for it to link with the management's preferred option,
Sikorsky Aircraft Corporation of the United States.
Defence Secretary Michael Heseltine, who had pushed the Agusta deal, resigned in protest after this, and remained an influential critic and potential leadership challenger. He would eventually prove instrumental in Thatcher's fall in 1990.
In 1986, her government controversially abolished the
Greater London Council (GLC), then led by the strongly left-wing
Ken Livingstone, and six
Metropolitan County Councils (MCCs). The government claimed this was an efficiency measure. However, Thatcher's opponents held that the move was politically motivated, as all of the abolished councils were controlled by Labour, had become powerful centres of opposition to her government, and were in favour of higher local government taxes and public spending. Several of them had however rendered themselves politically vulnerable by committing scarce public funds to causes widely seen as political and even extreme.
Thatcher had two notable foreign policy successes in her second term.
*In 1984, she visited China and signed the
Sino-British Joint Declaration with
Deng Xiaoping on
19 December, which committed the
People's Republic of China to award
Hong Kong the status of a "Special Administrative Region". Under the terms of the
One Country, Two Systems agreement, China was obliged to leave Hong Kong's economic status unchanged after the handover on
1 July 1997 for a period of fifty years – until 2047.
*At the Dublin European Council in November 1979, Mrs Thatcher argued that the United Kingdom paid far more to the
European Economic Community than it received in spending. She famously declared at the summit: "We are not asking the Community or anyone else for money. We are simply asking to have our own money back". Her arguments were successful and at the June 1984
Fontainebleau Summit, the EEC agreed on an annual rebate for the United Kingdom, amounting to 66% of the difference between Britain's EU contributions and receipts. This still remains in effect, although
Tony Blair later agreed to significantly reduce the size of the rebate. It periodically causes political controversy among the members of the
European Union.