In the 1981 election, the New Democrats lost 11 seats and the Progressive Conservatives under Premier Bill Davis regained majority status.
He garnered support from 11 caucus members including former leader Donald C. MacDonald as well as many party insiders and the unions.
He cited the Manitoba New Democrats who won under Howard Pawley with just as many party members but only 1/8 the size of the population.
[4] Jim Foulds, a former teacher from Northern Ontario had been a member of the party for ten years and had the most political experience.
His platform focused on northern issues such as establishing a Crown corporation in the forest industry and a public takeover of Inco.
This caused some friction amongst more left-leaning members who felt they would not be selected as delegates because they voiced a minority opinion.
[2] Sylvia Stead of the Globe and Mail said that delegates 'voted for him, not because of his stand on issues or his political experience, but because they believe he can win the elusive prize of government.
They also voted to support equal representation for women on riding executives and for convention delegations, auto import restrictions, a more equitable tax system and the acceptance of donations from small businesses.
While Rae achieved only minor success in the 1985 provincial election increasing his party to 25 seats from 21, he was instrumental in bringing down the Tory government in June 1985 when he signed an accord with the Liberals under leader David Peterson to support them in government after defeating the Tories on a motion of no confidence.