Automaker Stellantis has announced the signing of a memorandum of understanding with Canadian armored vehicle manufacturer Roshel regarding a potential transaction involving its dormant Brampton, Ontario, assembly plant. The union representing Canadian workers at Stellantis has halted contract discussions due to a stalemate over 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 stated in an email that Stellantis views Roshel as a viable avenue to revive sustainable operations at the Brampton Assembly, safeguarding its strategic significance in Canada’s advanced manufacturing sector and averting an extended period of inactivity. Unifor is currently evaluating potential next steps and intends to provide more information in the coming days.
The existing collective agreement between the automaker and the union is due to expire on September 20 at 11:59 p.m. Talks commenced on September 1 in Toronto after Unifor successfully ratified new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the summer through its pattern bargaining process with the Detroit Three automakers.
The union had set a deadline of September 11 to reach a new agreement with Stellantis but disclosed on Friday that discussions had collapsed after ten days. Unifor’s spokesperson Kathleen O’Keefe stated that the company’s persistent proposal to shutter and sell the Brampton plant had impeded the bargaining process. O’Keefe emphasized the detrimental impact of the proposed closure and sale on the wages, pensions, benefits of Unifor members, and the industrial sector, particularly in Ontario and the Brampton community.
Roshel’s CEO, Roman Shimonov, announced that the laid-off Brampton workers would be given priority for employment at the plant. Shimonov outlined plans to establish a Canadian Centre of Excellence for Defence Manufacturing in Brampton, alongside its current automotive production initiatives. He assured that laid-off Unifor workers would be considered first for employment opportunities through various programs, aiming to create over 2000 jobs and introduce new capabilities to Canada.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, highlighting the prolonged uncertainty faced by workers. Brown criticized Stellantis for what he perceived as a breach of commitments to the plant and urged the federal government to hold the company accountable. He also called for transparency from Roshel regarding job proposals and investment timelines, emphasizing the necessity for engagement with Unifor Local 1285.
Unifor raised concerns over the lack of confirmed plans for the Windsor assembly plant and Etobicoke casting plant. The union stressed the importance of resolving issues at the Brampton plant before finalizing any agreements. Stellantis refrained from further comments to respect the ongoing collective bargaining process with Unifor.
James Stewart, president of Unifor Local 444, revealed that the union’s priorities in negotiations with Stellantis were not met, leading to a pause in discussions. Stewart highlighted the union’s efforts to address the future of the Brampton plant, secure facility investments, and align bargaining patterns with previous agreements. The union’s decision to pause negotiations is not indefinite, and discussions on next steps are underway following the impasse with Stellantis management.