This is exactly what happened in the recession in the 70s in Europe which caused a crisis in the industry in for example Sweden, and the reason why Thatcher had

This is exactly what happened in the recession in the 70s in Europe which caused a crisis in the industry in for example Sweden, and the reason why Thatcher had to push through the unpopular neoliberal reforms in the UK. Unions caused stagnation and the industry could not compete with the recovering global competition, from Japan etc.