Intergroup conflict is conflict that takes place among different groups. Types of groups may include
different departments, employee unions, or management in a company or competing companies that
supply the same customers. Departments may conflict over budget allocations, unions and management
may disagree over work rules, and suppliers may conflict with each other on the quality of parts. Merging
two groups together can lead to friction between the groups—especially if there are scarce resources to be
divided among the group. For example, in what has been called “the most difficult and hard-fought labor
issue in an airline merger,” Canadian Air and Air Canada pilots were locked into years of personal and
legal conflict when the two airlines’ seniority lists were combined following the merger. [6] Seniority is a
valuable and scarce resource for pilots, because it helps to determine who flies the newest and biggest
planes, who receives the best flight routes, and who is paid the most. In response to the loss of seniority,
former Canadian Air pilots picketed at shareholder meetings, threatened to call in sick, and had ongoing
conflicts with pilots from Air Canada. The conflicts with pilots continue to this day. The history of past
conflicts among organizations and employees makes new deals challenging.