The labour dispute at St. Thomas University in Fredericton could have a ripple effect on the Atlantic economy in general, says the acting president of the Atlantic Institute for Market Studies.

“Every time you have a negotiated settlement you see raised salaries, which raises the bar for others,” says Charles Cirtwill, acting president of the Atlantic Institute for Market Studies, a Halifax-based think-tank.

Cirtwill said St. Thomas is a small university and the impact on the overall economy will likely be minimal. But he said similar disputes at Dalhousie and Acadia universities resulted in a decline in student applications for a few years after the strikes.

He questioned whether university professors should even be allowed to strike, saying negotiations could likely be settled through arbitration, even if unions don’t have the “big hammer” at their disposal.