Automaker Stellantis has announced a memorandum of understanding with Canadian armored vehicle manufacturer Roshel regarding the potential sale of its idle Brampton, Ontario, assembly plant. The union representing Canadian workers at Stellantis has halted contract negotiations due to a deadlock over 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 expressed Stellantis’ belief that partnering with Roshel could lead to sustainable operations at the Brampton Assembly, maintaining its strategic importance in Canada’s advanced manufacturing sector and preventing prolonged inactivity.
Unifor is currently evaluating its next steps and plans to release more information soon. The existing collective agreement between the automaker and the union is set to expire on September 20 at 11:59 p.m. Negotiations commenced on September 1 in Toronto following Unifor’s approval of new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the summer.
The union had set a September 11 deadline to reach a new agreement with Stellantis, but talks broke down after ten days. Unifor stated that the company’s proposal to close and sell the Brampton plant had impeded the bargaining process, jeopardizing the wages, pensions, and benefits of its members, while also impacting Canada’s industrial sector.
The potential sale news has disappointed Brampton Mayor Patrick Brown, who described it as another broken commitment from Stellantis, potentially betraying workers, families, and taxpayers. Brown urged the federal government to hold Stellantis accountable for its promises and demanded transparency from Roshel regarding job opportunities and investments.
Regarding the Windsor assembly plant and Etobicoke casting plant, Unifor highlighted the lack of confirmed plans from Stellantis, emphasizing the importance of resolving issues at the Brampton plant before finalizing any settlements. Stellantis refrained from providing further comments to respect ongoing collective bargaining with Unifor.
In Windsor, James Stewart, president of Unifor Local 444, informed that negotiations with Stellantis did not meet the union’s key priorities, leading to a pause in bargaining. Stewart clarified that the decision to pause negotiations was not indefinite and that the union is exploring options and planning its next moves following the impasse with Stellantis management’s intention to sell the Brampton plant.
Overall, the uncertainty surrounding the future of the Brampton assembly plant and the ongoing negotiations between Stellantis and Unifor continue to impact workers and the Canadian automotive industry.