Following his appointment to cabinet, Caldwell indicated that he would reverse the previous government's changes to the Public Schools Act relating to arbitration for teachers' salaries. The system in place when he assumed office stipulated that contract disputes must be settled according to the division's ability to pay. Caldwell initially considered reforming the system by putting teachers' contracts under the Labour Relations Act, so as to allow a greater range of issues to be considered. He refused to introduce the option of strikes and lockouts, which neither side had requested. The Manitoba Teachers' Society generally supported the proposed changes, while the Manitoba Association of School Trustees opposed them.