Stellantis, an automaker, has announced a memorandum of understanding with Canadian armored vehicle producer Roshel regarding a potential transaction involving the idle Brampton assembly plant in Ontario. The Canadian workers’ union at Stellantis has halted contract negotiations due to a deadlock concerning the future of the Brampton facility.
Trevor Longley, the Chairman, President, and CEO of Stellantis Canada, stated that the company explored various options for the plant, which has been inactive since 2023. Longley expressed that Stellantis views Roshel as a viable solution to revive sustainable operations at the Brampton Assembly, maintaining its crucial role in Canada’s advanced manufacturing sector and avoiding prolonged inactivity.
Unifor, the union, is currently assessing its next moves and plans to disclose further information shortly. The union emphasized that third parties should not intervene in bargaining discussions, particularly regarding the fate of the assembly plant.
The current labor agreement between Stellantis and the union is due to expire on September 20, 11:59 p.m. Negotiations commenced on September 1 in Toronto following Unifor’s approval of new agreements with Ford Motor Co. and General Motors in Canada earlier in the summer as part of its pattern bargaining strategy with the Detroit Three automakers.
The union had set a September 11 deadline to reach a new agreement with Stellantis, but talks collapsed after ten days. Unifor highlighted that Stellantis’ proposal to close and sell the Brampton plant has impeded the bargaining process, jeopardizing the wages and benefits of union members and negatively impacting Canada’s industrial sector.
More than 2,000 employees were laid off from the Brampton plant when operations ceased in 2023. Unifor assured its members of forthcoming updates on income protection during the negotiation pause.
Roshel’s CEO, Roman Shimonov, pledged that laid-off workers from Brampton would receive priority consideration for jobs at the plant. Shimonov outlined plans to establish a Canadian Centre of Excellence for Defence Manufacturing in Brampton, offering opportunities for former Unifor workers and aiming to create over 2,000 jobs and introduce new capabilities to the facility.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, criticizing Stellantis for what he perceived as broken commitments and urging the federal government to hold the company accountable. Brown emphasized the importance of transparency and job creation for the Brampton workforce.
Unifor also raised concerns about the uncertain future of Stellantis’ Windsor assembly plant and Etobicoke casting plant. The union stressed the necessity of resolving issues for Local 1285 members in Brampton as a prerequisite for any tentative settlements.
Unifor Local 444 President James Stewart disclosed that the union’s priorities in negotiations with Stellantis were not met, leading to an impasse and a decision to pause bargaining. Stewart clarified that the pause is not indefinite and that the union is exploring options and planning its next steps in collaboration with the company.
Stellantis refrained from further comments to respect the ongoing collective bargaining process with Unifor. The union remains actively engaged in discussions to address the challenges faced by its members and ensure a fair resolution to the issues at hand.