Stellantis, the automaker, has inked a memorandum of understanding with Roshel, a Canadian armored vehicle manufacturer, for a potential sale of its dormant assembly plant in Brampton, Ontario. The union representing Canadian workers at Stellantis has halted contract negotiations due to a deadlock concerning the future of the Brampton facility. Trevor Longley, Chairman, President, and CEO of Stellantis Canada, mentioned that the company explored various options for the plant, which has been inactive since 2023.
Longley stated via email that Stellantis views Roshel as a viable avenue to revive sustainable operations at Brampton Assembly, maintaining the site’s critical role in Canada’s advanced manufacturing sector and averting an extended period of inactivity. Unifor, the union, is currently assessing the next course of action and plans to disclose additional information soon.
The existing collective agreement between Stellantis and the union is due to expire on September 20 at 11:59 p.m. Negotiations commenced in Toronto on September 1 after Unifor successfully approved new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the summer as part of its pattern bargaining approach with each of the Detroit Three.
The union had set a deadline of September 11 to reach a new agreement with Stellantis but reported on Friday that talks collapsed after ten days. Unifor’s spokesperson, Kathleen O’Keefe, expressed that the company’s persistent proposal to close and sell the Brampton plant impeded the bargaining process. O’Keefe emphasized the severe impact of the proposed plant closure and sale on Unifor members’ wages, pensions, and benefits, as well as its detrimental effect on Canada’s industrial sector, particularly in Ontario and the Brampton community.
Roshel’s CEO, Roman Shimonov, announced 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 and assured that letters of commitment would be provided to laid-off Unifor workers for potential reemployment through various programs and opportunities.
Mayor Patrick Brown of Brampton expressed disappointment over the potential sale, labeling it as another broken commitment from Stellantis that has left workers uncertain for nearly three years. Brown urged the federal government to hold Stellantis accountable for its promises and emphasized the importance of transparency regarding Roshel’s job proposals and investment timeline.
Unifor highlighted the uncertainty surrounding jobs at Stellantis’ Windsor assembly plant and Etobicoke casting plant, stressing the necessity for resolving issues related to the Brampton facility. Stellantis refrained from providing further comments to respect the ongoing collective bargaining process with Unifor.
James Stewart, President of Unifor Local 444 (Windsor Assembly), noted in a video statement that the union’s priorities in bargaining with Stellantis were not met, leading to a pause in negotiations. Stewart highlighted the impasse with Stellantis management regarding the sale of the Brampton plant and mentioned ongoing discussions within the union to determine the next steps.