Automaker Stellantis has announced a memorandum of understanding with Canadian armored vehicle manufacturer Roshel regarding a potential transaction involving its dormant Brampton, Ontario, assembly plant. At the same time, the union representing Canadian employees 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, revealed that the company explored various options for the plant, which has been inactive since 2023. Longley emphasized that Stellantis views Roshel as a viable avenue to revive sustainable operations at the Brampton Assembly plant, maintaining its strategic significance in Canada’s advanced manufacturing sector and averting an extended period of inactivity.
Unifor, the union representing the workers, is currently evaluating their next course of action and pledged to provide additional information soon. Unifor Local 1285 President Vito Beato expressed concern over third-party intervention in negotiations and decisions regarding the assembly plant’s future.
The current collective agreement between Stellantis and the union is scheduled to expire on September 20 at 11:59 p.m. Talks commenced on September 1 in Toronto following Unifor’s ratification of new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the summer.
The union had set a deadline of September 11 to reach a new agreement with Stellantis. However, negotiations stalled after ten days, with the company’s proposal to close and sell the Brampton plant impeding progress. Unifor spokesperson Kathleen O’Keefe highlighted the risks posed by the potential facility closure and sale to members’ wages, pensions, and the broader industrial landscape in Canada.
Roshel CEO Roman Shimonov stated that laid-off Brampton workers would be given priority for employment at the plant, outlining plans to establish a Canadian Centre of Excellence for Defence Manufacturing in Brampton, alongside existing automotive production. Shimonov affirmed a commitment to offering job opportunities to former Unifor workers through various programs, aiming to create over 2000 jobs and introduce new defense capabilities to Canada.
Brampton Mayor Patrick Brown expressed disappointment over the news of the potential sale, emphasizing the impact on workers and the community. He urged the federal government to hold Stellantis accountable for its obligations and demanded transparency from Roshel regarding job creation and investment plans.
Unifor highlighted uncertainties surrounding Stellantis’ plans for its Windsor assembly plant and Etobicoke casting plant, emphasizing the importance of resolving issues at the Brampton facility before reaching a tentative settlement. Stellantis refrained from further comments to respect the ongoing bargaining process with Unifor.
James Stewart, President of Unifor Local 444 (Windsor Assembly), outlined the union’s priorities in negotiations with Stellantis and the challenges faced in reaching an agreement. Stewart disclosed the company’s intention to exit the Brampton plant and sell it to a third party, prompting the union to pause bargaining and assess its options for the way forward.
