Rae resigned from the New Democratic Party in the late 1990s, due to his appointment to Security Intelligence Review Committee. There was some speculation that Prime Minister Jean Chrétien would appoint him Governor-General of Canada in 1999, but he was passed over in favour of Adrienne Clarkson. There was further speculation that Rae would run for the federal Liberal Party in the 2000 election, though nothing came of this at the time.
...
Rae returned to active political controversy on April 16, 2002, two days after Mike Harris resigned as premier, with an opinion piece in the National Post newspaper. In an article entitled, Parting Company with the NDP, Rae strongly criticized what he perceived as a bias against Israel in the federal party. He also criticized the NDP for rejecting Tony Blair's Third Way and for refusing to accept globalization and open markets, suggesting that the party's economic policies were insufficient for the 21st century and that the party as a whole was no longer "worthy of support".
The Ontario NDP has distanced itself from Rae's policies under the leadership of Howard Hampton. During the 2003 provincial election, Hampton argued that Rae was wrong to reverse the NDP's commitment to public auto insurance. The party's relations with the labour movement have not completely healed, although the situation has improved since 1993. Relations with the CAW remain especially fraught, and memories of the social contract have hurt the NDP's credibility with a new generation of public sector workers, despite the party's efforts to distance itself from the measure.
http://en.wikipedia.org/wiki/Bob_Rae