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Which Labour sort of tried to do with "In place of strife" at the end of the 60s and less obviously in the late 70s.
The unions and parts of the party blocked it.
The Unions were short sighted but don't exclude the hopeless management of parts of british industry from responsibility for the failures of the 60s,70s and 80s
Your account is also very one-sided. Unions in Germany, for example, have engaged with management about how to reposition industry in the face of a more globalised market. In the UK the relationship between unions and management was mostly confrontational and antagonistic, reducing the bigger problem (that the world was changing rapidly and that industry needed to adapt) to a highly polarised war over wages. Management (and government) clearly bear blame for this, but so do the unions.