Automaker Stellantis has announced a memorandum of understanding with Canadian armored vehicle manufacturer Roshel regarding the potential sale of its dormant Brampton, Ontario assembly plant. The Canadian arm of Stellantis’ union has halted contract discussions due to a deadlock over the future of the Brampton facility.
Trevor Longley, the 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 in an email that Stellantis views Roshel as a viable route to rejuvenating sustainable operations at the Brampton Assembly site, maintaining its strategic significance in Canada’s advanced manufacturing sector, and averting an extended period of dormancy.
Unifor is currently evaluating its next steps and plans to share additional information shortly. Vito Beato, President of Unifor Local 1285, emphasized that third parties should not interfere in bargaining processes, particularly concerning the future of the assembly plant.
The existing collective agreement between Stellantis and the union is scheduled to expire on September 20 at 11:59 p.m. Talks commenced in Toronto on September 1 after Unifor successfully negotiated new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the year.
The union had set a deadline of September 11 to reach a new agreement with Stellantis, but negotiations stalled after ten days. Unifor spokesperson Kathleen O’Keefe highlighted that the company’s proposal to close and sell the Brampton plant has impeded the negotiation process, jeopardizing the wages, pensions, and benefits of union members and posing a significant blow to Canada’s industrial sector.
Roshel’s CEO, Roman Shimonov, pledged that laid-off workers in Brampton would receive priority consideration for positions at the plant. Shimonov outlined plans to establish a Canadian Centre of Excellence for Defence Manufacturing in Brampton and assured commitments to rehire workers through various programs.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, criticizing Stellantis for potentially reneging on commitments made to workers and the community. Brown called for government intervention to hold Stellantis accountable for its promises.
Unifor also raised concerns about the lack of confirmed plans for Stellantis’ Windsor assembly plant and Etobicoke casting plant. The union emphasized the importance of resolving issues at the Brampton plant before finalizing any settlements.
In a video statement, James Stewart, president of Unifor Local 444, discussed the union’s priorities in negotiations with Stellantis and highlighted the impasse reached regarding the future of the Brampton plant. Stewart emphasized that the decision to pause bargaining is not indefinite, and discussions on next steps are ongoing.
Stellantis refrained from further comments to respect the ongoing collective bargaining process with Unifor.